Drastic cut in EU trade aid; most Latam countries will loose tariff preferences
The European Parliament backed plans to take “high and upper-middle income” countries out of the bloc’s tariff preference system, the House informed on Wednesday following a vote on the issue.
The vote also secured parliamentary oversight of decisions on which countries get preferences, stiffened safeguards for the EU textiles sector and extended product coverage to include minerals of particular value for some developing countries.
Argentina, Brazil, Uruguay among other Latin American countries remained out of the benefit which the parliament says is aimed towards doing more “for poorer countries.”
The updated generalized system of preferences (GSP) removes tariff preferences, such as today's reduced or zero duties, for EU imports from countries where per capita income has exceeded 4.000 dollars for four years, reflecting the fact that many GSP beneficiaries (including Russia, Brazil and Saudi Arabia) now compete on an equal footing with the EU in world markets. The update was approved with 503 votes in favor, 107 against and 37 abstentions.
“The Parliament has focused on making the system more transparent, more predictable and more generous for the countries that remain in it”, said Christofer Fjellner before the vote, adding his hope that in 10 years, when the Parliament will next update the scheme, “we will have even fewer countries participating in GSP scheme — because there will be fewer poor countries in the world due to benefits that this system has brought them”.
The update will reduce the number of countries that enjoy preferential access to EU markets from 176 to around 75. It will also reduce the total value of imports that qualify for EU preferences from €60 billion in 2009 to about €37.7 billion in 2014, thus creating room to increase preferences for the remaining beneficiaries.
The new rules will enable 3 new countries — Pakistan, the Philippines and Ukraine — to apply for zero EU duties to be charged on their exports to the EU under the “GSP+” incentive scheme. To qualify, these exports would have to account for less than 2% of the EU total GSP imports (up from 1% today) and the countries would have to prove that they abide by 27 international conventions in the field of human rights and sustainable development.
However, to ensure that the GSP+ concession does not lead to import surges that harm EU textile and clothing producers, the EU parliament negotiated with the Council a rule that tariff preferences for these products will be suspended for a given country if EU imports from that country grow by 13.5% or more in a year (down from the Commission proposal of 15%), or if imports of specific products exceed 6% of total EU imports of these products (down from the Commission proposal of 8%).
Parliament also voted to extend the range of products covered by the GSP to include some raw metals (aluminum oxide, lead, cadmium and others), that are of particular value to countries (most in Africa) that would remain in the GSP scheme.
This is the first time that Parliament has exercised its power, introduced by the Lisbon Treaty, to legislate on the GSP.
Most of the high and upper-middle income countries to be removed from the GSP, such as Colombia and Peru, have already negotiated alternative free trade agreements or other preferential deals. But several countries in this category — including Argentina, Brazil, Russia and Saudi Arabia — have yet to reach alternative agreements.
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16 comments Feed
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Devoid of Love
the night falls with a silent sigh, lost are you.
the light for which you lust
flares once, then dies,
smothered by the all-encompassing turkey-necked one.
all hope must surely perish.
your heart beats no more.
how could you not understand?
your dark thoughts surround you, crying,
save us from ourselves.
Argtardia you are doomed.
I thought you said freer trade meant greater prosperity once, didn't you?
You are done. Check all the news. It's entirely about European society and prosperity disintegrating as we speak, including the UK. These nincompoops talking about Argentina's problems (which are really far simpler to resolve because we can still grow), when they are facing imminently the dawn of the 2nd Dark Ages.
In a few months you won't be able to but anything from us, or from “somewhere” else.
Don't worry, Argentina will be ready to come to your aid, just as we did in the 1940s to save Spain, France, Italy from starvation, help feed Berlin, and keep the UK supplied with food to survive through their little war.
Adieu, see you in a a few when we silence your curmurring, esurient belly with some argie rations of wheat. It's coming. :
World Bank 2011:
EU GDP - $16.2 trillion
South America GDP - $3.2 trillion
UK GDP $2.25 trillion
Spain GDP £1.4 trillion
London GDP $565 billion
Argentina GDP $368 billion.
The EU or UK won't be turning to Argentina - the biggest debt defaulter in history - for any help.
And Argentine supported the nazis both during and after the war.
Was that after you broke off relations with the Axis powers and defected to the winning side? or before declaring war against germany, what? 38 days before they surrendered. Any food you supplied was bought and paid for, or at least it was by the allied nations. Seems somethings never change two faced then, two faced now!
Don't worry about us. We got by for 1800 years without you.
You, on the other hand, ran away from Europe in order to make a cock-up somewhere else.
As for your “aid”, keep it. Your need is greater than ours.
But, look on the bright side, when half your country is owned by China, and the other half by India, because you can't get money anywhere else, you'll all be used to working in the paddy fields all day.
Don't you realise that ALL debts have to be paid? One way or another!
Good luck with that!
368 billion? That's like 2008 data. At least lie with mor recent statistics. (GDP between 465-510 billion depending on which ajusted inflation you believe). Why do you think foreign products are so much cheaper now? Local economy has rebounded drasically in dollar terms.
@6
Why did we need to break relations with the Axis? Did they attack us? Did they threaten us? Did they blockade us? No. They attacked you. LOL... what do we care.
Like you would go to war if Brazil or China attacked us. Get out of here.
@7
Debts are payed only to those who negotiate in good faith. Don't want to negotiate? You ain't getting nothing.
“UK economic recession could be far deeper than 2008 bout”
“Spain downgraded 3 notches”
“French unemployment soars”
“Nokia closes all factories in Finland”
“German manufacturing grinds to a halt”
Bye-bye.
Neither Europe nor Argentina are going to collapse, I think you are both exaggerating slightly.
TTT
“German manufacturing grinds to a halt” means that the sector is not growing, i.e. it is still a global monster and the largest manufactured goods exporter on a per capita basis by miles – I am certain you know that.
War-torn Europe was an economic bonanza for Argentina. Food was not sent as aid.
Today, Argie food exports to the EU are far more important for the Argie economy than they are for the EU.
The Ukrainian bread basket sits on the EU’s door step, with significant logistical advantages over Argentina.
I expect Ukraine will be accepted in to the EU once the current debt crisis is over.
“Like you would go to war if Brazil or China attacked us. Get out of here.” – Brazil, you are right on that, but for China to attack Argentina, China would probably already be at war with the US, France, UK and Chile.
“Did they attack us, did they threaten us, did they blockade us, no. They attacked you, what do we care.” Then why did you declare war on 28th March, 1945? Go on expalin why, with a month left, you decalred war? It sure as hell wasn't to fight fascism.
Plainly stated, he frequently insists that honesty and responsibility have no cash value and are therefore worthless.
This lie of his cannot stand the light of day, and a few minutes' reflection will suffice to show how utterly annoying-to-the-core a lie it is.
Nonetheless, he adamantly maintains that every featherless biped, regardless of intelligence, personal achievement, moral character, sense of responsibility, or sanity, should be given the power to toss quaint concepts like decency, fairness, and rational debate out the window.
It was convenient for us. We wanted to have in on the UN. Everyone knows that. Argentina was the only “founding” member not to be part of the allies.
The UK was fighting facism? Surely would have gone to war with Italy in 1923 if that was the case.
Typical British revisionism, it is so pathetic. In another thread the Brits are claiming they single-handedly liberated the entirety of Latin America from Spanish rule!
These people are delirious.
We are ready to give up on 'the big deal' with Mercosur.
We will offer preferential arrangements with the SA minnows.
We will do bilateral deals with Brasil, Uruguay, etc..
We will be in no hurry to create a deal with Argentina.
IMF GDP 2011:
EU GDP - $17.6 trillion
UK GDP $2.41 trillion
Spain GDP £1.49 trillion
Argentina GDP $447 billion.
Doesn't look any better for the debt defaulting argies
@13 “It was convenient for us.” Thanks for your mantra. “Why did we exterminate the indigenous people?” “It was convenient for us.” ”Why did we kill 30,000 (or more) of our own people?“ ”“It was convenient for us.” “Why did we fly so many of them out and drop them in the ocean?” “It was convenient for us.” “Why do we deny any connection between the Junta and present-day argieland? ”“It was convenient for us.” ”Why did we invade the Falkland (there are no Malvinas) Islands?“ ”“It was convenient for us.” But thanks for the commendation. “British revisionism” coming from the queen (queer) of present-day revisionists. How could Brits have single-handedly liberated the entirety of “Latin” America from Spanish rule? Many Britons had roles in various liberation movements in South America. Cochrane, for example. But, if Britain had liberated South America, we wouldn't have left the poor saps speaking gibberish. Remember that. In order to communicate with “proper” people, you have to learn a “proper” language, i.e. English. Otherwise, you just gibber amongst yourselves. The best method of reinforcing a regressive and retarded gene pool. But why, oh why, here on MercoPress do we have to put up with the scum off the pool?
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