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Generalised System of Preferences (GSP)

Screening IcelandChapter 30, External Relations – Bilateral

Brussels, 19 May 2011

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GSP (1)

• Regulation No 119/2002 – GSP• Tariff on products originating in the world’s

poorest developing countries (GSP countries) is abolished consistent with the suspension of tariffs on products originating in the European Economic Area

• Tariff preferences granted to 50 countries• Rules of origin in Annex 4

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GSP (2)

• Countries covered – Afghanistan, Angola, Bangladesh, Benin, Burma, Burkina

Faso, Burundi, Bhutan, Cambodia, Cape Verde Islands, Central African Republic, Chad, Congo, Comoros, Djibouti, Eritrea, Equatorial Guinea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Maldives, Mali, Mauritius, Mozambique, Nepal, Niger, Rwanda, Solomon Islands, Samoa, Sao Tome and Principe, Sierra Leone, Somalia, Sudan, Tanzania, Togo, Tuvalu, Uganda, Vanuatu, Yemen and Zambia.

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GSP (3)

• Products covered by the regulation– Products within HS Chapters 25-97

• Exceptions in Annex I to the Regulation• Two headings (Egg albumin and Industrial monocarboxylic fatty

acids)

• Processed agricultural products listed in Annex 2 to the Regulation are covered– 52 headings (some „ex“ marked)

• Fish and other marine products listed in Annex 3 to the Regulation are covered– 108 tariff numbers

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GSP (4)

• Statistics

• Main beneficiary country is Bangladesh with over 60% of total Customs value

* On current exchange rate between Euro and the Icelandic Krona:163

Year No of Countries Total Customs Value*

2007 37 2.251.0492008 37 3.096.0032009 37 3.085.2062010 34 3.368.104

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GSP (5)

• Cap analysis– On accession, Regulation No 119/2002 on a

General System of Preferences for the least developed countries would be replaced by General System of Preferences of the EU

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Ministry of Finance http://ministryoffinance.is/

Ministry for Foreign Affairs http://www.mfa.is

EU Application Website http://europe.mfa.is/