On 13 June 2012, the European Parliament (EP) adopted a resolution on the Commission’s proposal on the next GSP regime. This resolution reflects the compromise reached with the Council in May. Contrary to the Commission’s initial proposal, the next GSP regime will only be applicable for 10 years, starting from 2014, except for the special arrangement for the leastdeveloped countries which will continue to apply without an expiry date. The Parliament also demanded the inclusion in the new regime of threshold values triggering a safeguard procedure.
The EP did accept the Commission’s proposal to decrease the number of countries eligible for GSP or GSP+ preferences, while increasing the amount of products that can benefit from such preferential treatment. Countries that will lose GSP preferences, based on a classification by the World Bank as highincome or upper-middle income countries, include Russia, Belarus, Saudi Arabia, Malaysia, Brazil and Argentina.
Countries that would no longer benefit from GSP benefits, but have already initialled a preferential trade agreement with the EU by the entry into force of the new Regulation, would still be able to benefit from the GSP scheme for a transitional period of two years.