EU defers GSP rescheduling amidst conflicting claims
10 Oct '05
2 min read
Considering the stance adopted by Least Developed Countries (LDCs) for whom the safeguard or Globalised System of Preferences rules have been deferred by the European Union, particularly all products including textiles with the exception of arms from the 49 LDCs, was to become operative since July this year.
M A Awal, Chairman, Bangladesh Textiles Mills Association (BTMA) said, "We have objected to one stage transformation, which intends to allow Bangladesh's exporters to import fabrics to produce apparels for exporting to the EU market."
He said that the association had argued for a simple Rules of Origin (RoO) at the EU, so as to safaeguard the local textile industries interest against competing fabrics imports from South Asian Association for Regional Cooperation (SAARC) or Association of South East Asian Nations (ASEAN) countries.
Currently, apparel products from Bangladesh enter Eu under the GSP and is allowed a two-stage transformations - yarn to fabrics and fabrics to outfit -- to become eligible under the scheme.
Now the EU has rescheduled the enforcement of the new GSP from next January. They are studying various sides of the proposed GSP reforms, indicated an official at the Office of the European Commission Delegation in Dhaka.
Total EU imports under GSP during the year 2003 in value terms reached Euro 52 billion while developing countries share in total EU imports went up 40 percent from 33 percent, during 1999-2000.
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