ARMENIA TO MAKE USE OF GSP+ TRADE REGIME STARTING FROM JANUARY 2009

Noyan Tapan

Dec 19, 2008

YEREVAN, DECEMBER 19, NOYAN TAPAN. On December 9, 2008, the European
Commission approved the list of countries eligible to use the EU’s GSP+
(GSP – Generalized System of Preferences) trade regime for sustainable
development and efficient governance. The countries can make use of
the GSP+ trade regime in the period of January 1, 2009 up to the end
of 2011.

Among the countries to use GSP+ system are Armenia, Georgia,
Azerbaijan, Bolivia, Colombia, Costa Rica, Ecuador, El Salvador,
Guatemala, Honduras, Mongolia, Nicaragua, Paraguay, Peru, Sri Lanka
and Venezuela. The precondition for using GSP+ system is ratification
and efficient use of the conventions adopted by the United Nations and
the International Labor Organization (ILO), as well as 27 international
conventions. The conventions are related to human rights, major labor
standards, environment and governance principles.

GSP+ allows countries to export about 6,400 types of goods to EU
market at zero or considerably reduced customs duties (the reduction
of customes duties makes: for cigarettes – up to 52%, various natural
juices – 30%, fruit – 20%, vegetables – 14%, fish products – 20%,
and honey -17%).

In 2007, the trade conducted within the framework of GSP+ system
amounted to 4.7 billion euros. The exporters from the countries using
GSP+ system paid customs duties by 357 million euros less than they
would pay in case of using GSP.