Assessment of the proposed Reform of the Generalised System of Preferences

This policy paper reviews the draft Regulation for a new Generalised System of Preferences (GSP) in the light of the reform strategy prepared by the European Commission in July 2004. The reform of the GSP is of great potential significance both for the EUs overall trade policy and for its development policy. This policy paper identifies the key changes foreseen in the draft Regulation and assesses their potential impact, with a particular focus on graduation, the GSP+ scheme and the links with the Cotonou agreement. The paper looks at product coverage, WTO compatibility and identifies potential winners and losers of the new GSP system. The authors even address the difficulties encountered by policy-makers with regard to rules of origin, closely linked to the GSP scheme.