Changes from report parliamentary committee draft to plenary report

Change 50

AddedSHORT JUSTIFICATION

AddedThe European Union (EU) has granted trade preferences to developing countries through the Generalised Scheme of Preferences (GSP) since 1971, as part of its common commercial policy and in accordance with the general provisions governing the EU's external action. The GSP assists developing countries with integrating in the world economy, reducing poverty, and supporting sustainable development through the promotion of core human and labour rights, environmental protection, and good governance.

AddedThe GSP consists of three arrangements:

Added• Standard GSP: for low and lower-middle income countries, providing for a reduction or full removal of customs duties on two thirds of EU tariff lines.

Added• GSP+: the special incentive arrangement for sustainable development and good governance, which reduces tariffs to 0% for broadly the same tariff lines as Standard GSP. It is granted to vulnerable low and lower-middle income countries that implement 27 international conventions related to human rights, labour rights, protection of the environment and good governance.

Added• EBA (Everything But Arms): the special arrangement for least developed countries (LDCs), providing them with duty-free, quota-free access to the EU market for all products except arms and ammunition.

AddedThe current scheme will apply until 31 December 2023.

AddedThe Commission’s mid-term evaluation and the supporting expert study concluded that the current framework has been largely effective and delivering on its objectives. The GSP has had a positive economic impact - the imports to the EU from the beneficiary countries have increased. However, the GSP does not achieve its full potential when it comes to improving living standards, environmental standards or incentivising the beneficiary countries to improve the respect for human rights and other core rights and obligations related to sustainable development.

AddedThe Commission published the proposal for a new regulation for the period 2024 -2034 on 22 September 2021. The proposal retains broadly the features of the current GSP regulation. It strengthens the current GSP in aspects that are of particular relevance for AFET, such as extending the list of conventions that need to be complied with additional human rights and good governance instruments, introduces improvements in the monitoring of compliance with GSP+ requirements and boosts involvement of civil society in the implementation of the GSP. It further introduces a new urgent withdrawal procedure in cases of grave violations of international human rights standards.

AddedHowever, there are areas where the AFET rapporteur would like to further strengthen the proposal and make it more effective, including:

Added- an ex-ante human rights impact assessment before the granting of standard GSP and GSP+ in order to identify risks of human rights violations and abuses by sector in the country.

Added- Extending positive conditionality to standard GSP.

Added- Reinforcing the Annex VI on core conventions.

Added- Reinforcing transparency and effectiveness of the monitoring process and strengthening the involvement of both international and domestic civil society.

Added- Promoting, through this instrument, the UN Guiding Principles on Business and Human rights and OECD Due Diligence Guidance for Responsible Business Conduct and the compliance of beneficiary countries’ legislation with the EU due diligence toolbox, in particular with the EU regulation no 2368/2002 of 20 December 2002 implementing the Kimberley Process certification scheme for the international trade in rough diamonds, the EU regulation 2017/821 of 17 May 2017 laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas as well as the regulation 995/2010 of the European Parliament and of the Council of 20 October 2010 laying down the obligations of operators who place timber and timber products on the market.

Added- Reinforcing complaints mechanism by formalising the Single Entry Point in the proposal and making it open to Human Rights Defenders and civil society organisations.

Added- Clarifying the possibility of sectoral withdrawal of preferences in function of occurrence of serious and systematic human rights violations in a particular sector.

AddedAMENDMENTS

AddedThe Committee on Foreign Affairs calls on the Committee on International Trade, as the committee responsible, to take into account the following amendments:

AddedRecital 8 a (new): (8 a) Before granting any preferential regime to a country, the Commission should conduct and publish an ex-ante human rights and environmental impact assessment in order to identify, assess, and indicate measures to prevent, mitigate, address and combat any risk of human rights or environmental violations.

AddedRecital 9: (9) The standard GSP arrangement should be granted to all those developing countries which share a common development need and are in a similar stage of economic development and have signed and have committed to ratifying the core international conventions mentioned in Annex VI within five years upon the application of the arrangement. There is no definition of ‘developing country’ at the level of the WTO, and it is left to preference granting countries to determine the list of GSP-eligible developing countries. Countries which have successfully completed their transition from centralised to market economies, and are today powerful economies with a strong position in international trade, such as China, Hong Kong, Macao and Russia, should not be considered as developing countries in the context of the GSP, and should, therefore, be removed from the list of eligible countries. Countries which are classified by the World Bank as high-income or upper-middle income countries have per capita income levels allowing them to attain higher levels of diversification without the scheme's tariff preferences. They are at a different stage of economic development and do not, therefore, share the same development, trade and financial needs as lower income or more vulnerable developing countries. In order to prevent unjustified discrimination, they need to be treated differently; therefore, they do not benefit from the standard GSP arrangement. Furthermore, the use of tariff preferences provi…

AddedRecital 11: (11) The special incentive arrangement for sustainable development and good governance (GSP+) is based on the integral concept of sustainable development, as recognised by international conventions and instruments such as the 1986 UN Declaration on the Right to Development, the 1992 Rio Declaration on Environment and Development, the 1998 International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work, the 2000 UN Millennium Declaration, the 2002 Johannesburg Declaration on Sustainable Development, the ILO Centenary Declaration for the Future of Work of 2019, the Outcome Document of the UN Summit on Sustainable Development of 2015 "Transforming Our World: the 2030 Agenda for Sustainable Development", the UN Guiding Principles on Business and Human Rights, and the Paris Agreement on Climate Change under the UN Framework Convention on Climate Change. Consequently, the additional tariff preferences provided for under the special incentive arrangement for sustainable development and good governance should be granted to those developing countries which, due to a lack of diversification, are economically vulnerable, have ratified and started implementing core international conventions on human and labour rights, climate and environmental protection and good governance, and commit to pursuing the effective implementation thereof, including but not limited to a public, ambitious and time-bound plan of action, adopted in accordance with this Regulation…

AddedRecital 16: (16) The Commission and where appropriate the European External Action Service should monitor the status of ratification of the international conventions on human and labour rights, environmental protection and good governance and their effective implementation, by examining the relevant information, in particular where available the conclusions and recommendations of the relevant monitoring bodies established under those conventions. Every two years, the Commission should present to the European Parliament and the Council a report on the status of ratification of the respective conventions, the compliance of the beneficiary countries with any reporting obligations under those conventions, and the status of the implementation of the conventions in practice.

AddedRecital 16 a (new): (16a) The Commission should, for reasons of consistency of Union policies, encourage beneficiary countries to adhere to higher social and environmental standards and to promote a strong sustainable development dimension in global value chains, in line with the due diligence obligations set out in the United Nations Guiding Principles on Business and Human Rights.

AddedThe GSP regulation needs to be coherent with the EU’s human rights and environmental due diligence tools as recalled in the European Parliament resolution of 5 July 2016 on implementation of the 2010 recommendations on social and environmental standards, human rights and corporate responsibility (2015/2038(INI).

AddedRecital 18: (18) In July 2020, the Commission appointed the Chief Trade Enforcement Officer with the role of enforcing trade rules. In this connection, in November 2020, the Commission launched a new complaints mechanism, the Single Entry Point (‘SEP’), as part of its increased efforts to strengthen the enforcement and implementation of trade commitments. Through the SEP, the Commission receives complaints on various matters related to trade policy, including breaches of the GSP commitments. Such new system of complaints should be integrated within the framework of this Regulation and should be accessible to civil society organisations and human rights defenders, both from the Union and the beneficiary countries.

AddedRecital 26: (26) Orderly international migration can bring important benefits to the countries of origin and destination of migrants and contribute to their sustainable development needs. Increasing coherence between trade, development and migration policies is key to ensure that the benefits of migration accrue mutually to both the origin and destination countries. In this respect, it is essential for both origin and destination countries to address common challenges, such as, stepping up cooperation on readmission of own nationals and their sustainable reintegration in the country of origin, in particular in order to avoid a constant drain in active population in the countries of origin, with the ensuing long-term consequences on development, and to ensure that migrants are treated with dignity and that their human rights are fully respected.

AddedRecital 27: deleted

AddedArticle 2 – paragraph 1 – point 11 a (new): (11 a) ‘serious and systematic violation’ means widespread and systematic human rights violations or abuses that are of serious concern, as regards the objectives of the common foreign and security policy set out in Article 21 TEU, which includes but is not limited to the following: / i. genocide; / ii. crimes against humanity; / iii. torture and other cruel, inhuman or degrading treatment or punishment; / iv. slavery or forced labour; / v. extrajudicial, summary or arbitrary executions and killings; / vi. enforced disappearance of persons; / vii. arbitrary arrests or detentions; / viii. trafficking in human beings, including people-smuggling; / ix. sexual and gender-based violence; / x. other violations of the laws and customs of war; / xi. violations or abuses of freedom of peaceful assembly and of association; / xii. violations or abuses of freedom of opinion and expression; / xiii. violations or abuses of freedom of religion or belief; / Indicators to determine whether such serious and systematic violations have occurred should be clear and include, amongst others: / (i) rulings and opinions by international human rights courts, courts, arbitration panels and tribunals or other judicial authorities and mechanisms; / (ii) establishment and findings of commissions of inquiry, fact-finding missions, special rapporteurs, or other monitoring mechanisms by the UN Human Rights Council or General Assembly or by other regional intergovernmental bodies; / (iii) findings by the Offi…

AddedArticle 2 – paragraph 1 – point 11 b (new): (11 b) ‘human rights due diligence obligations’ refers to the responsibility of business enterprises to respect human rights and to protect against human rights abuse by business as set in the UN Guiding Principles on Business and Human Rights (UNGPs) in 2011. The responsibility of business enterprises to respect human rights refers to internationally recognized human rights – understood, at a minimum, as those expressed in the International Bill of Human Rights and the principles concerning fundamental rights set out in the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work.

AddedArticle 2 – paragraph 1 – point 11 c (new): (11 c) ‘civil society organisation’ means a wide range of actors with multiple roles and mandates, which may vary over time and across institutions and countries, and includes all non-State, not-for-profit independent and non-violent structures, through which people organise the pursuit of shared objectives and ideals, including political, cultural, religious, environmental, social or economic, and which operate at local, national, regional or international levels, and which comprise urban and rural, indigenous, formal and informal organisations;

AddedArticle 3 a (new): Article 3 a / Human rights and environmental impact assessmentBefore granting any preferential regime to a country, the Commission should conduct and publish an ex-ante human rights and environmental impact assessment in order to identify, assess, and indicate measures to prevent, mitigate, address and combat any risk of human rights or environmental violations.

AddedArticle 4 – paragraph 1 – point b a (new): (b a) the results of an ex ante human rights and environmental impact assessment carried out by the Commission pursuant to article 3 paragraph a (new) show a considerable risk of negative impact on human rights or on the environment in the beneficiary country, and proposed measures to prevent, address and combat it are insufficient or have not been accepted by the beneficiary country’s government;

AddedArticle 4 – paragraph 1 – point b a (new): (b a) there is sufficient ground to consider that serious and systematic shortcomings and violations of the conditions set out in Article 19.1 points (a), (b), (c), (d) and (e) exist;

AddedArticle 4 – paragraph 1 – point b c (new): (b c) it has not signed nor ratified the conventions listed in Annex VI within five years upon the application of the preferences;

AddedArticle 4 – paragraph 1 – point b d (new): (b d) it has adopted domestic legislative and administrative measures that manifestly aim to undermine the effective implementation of the due diligence requirements under Union law, and in particular Regulation (EU) 2017/821 of the European Parliament and of the Council1a, Regulation (EU) 995/2010 of the European Parliament and of the Council1b and Council Regulation (EC) 2368/20021c; / 1a Regulation (EU) 2017/821 of the European Parliament and of the Council of 17 May 2017 laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas (OJ L 130, 19.5.2017, p. 1). / 1b Regulation (EU) 995/2010 of the European Parliament and of the Council of 20 October 2010 laying down the obligations of operators who place timber and timber products on the market (OJ L 295, 12.11.2010, p.23). / 1c Council Regulation (EC) No 2368/2002 of 20 December 2002 implementing the Kimberley Process certification scheme for the international trade in rough diamonds (OJ L 358, 31.12.2002, p. 28).

AddedArticle 4 – paragraph 1 a (new): 1 a. The Commission and, where applicable, the European External Action Service, shall make sure that countries that benefit from the standard arrangement referred to in paragraph 1 of this Article have ratified the conventions listed in Annex VI within the five years upon the application of the preferences;

AddedArticle 4 – paragraph 1 b (new): 1 b. The Commission shall encourage beneficiary countries to adopt measures in line with the United Nations Guiding Principles on Business and Human Rights, such as the adoption of National Action Plans and in line with their commitment ensure the ratification of the conventions listed in Annex VI. It shall be possible to finance assistance programs under the Neighbourhood, Development and International Cooperation Instrument – Global Europe, established by Regulation (EU) 2021/947 of the European Parliament and of the Council.

AddedArticle 9 – paragraph 1 – point b: (b) it has ratified and started to implement all the conventions listed in Annex VI (the 'relevant conventions') and the Commission has not identified, based on available information, in particular the most recent available conclusions of the monitoring bodies under those conventions as well as information submitted by the Advisory Body or the civil society organisations, a serious failure to effectively implement any of those conventions;

AddedArticle 9 – paragraph 1 – point d: (d) it gives a binding undertaking to ratify and ensure effective implementation of the relevant conventions by an ambitious and public time-bound plan of action of measures that are necessary to effectively implement the relevant conventions, setting out a roadmap with clear benchmarks and deadlines, and that shall be approved by the Commission in consultation with the European Parliament. The beneficiary country and the Commission should reach a common understanding on the plan of action, which shall thereafter be made public. The plan of action shall serve as a basis for the report referred to in Article 14;

AddedArticle 9 – paragraph 1 – point d a (new): (d a) it has not adopted domestic legislative and administrative measures that manifestly aim to undermine the effective implementation of the due diligence requirements under Union law, and in particular Regulations (EU) 2017/821, (EU) 995/2010 and (EC) 2368/2002 and has adopted a National Action Plan for the implementation on Business and Human Rights, in conformity with the Guidance on National Action Plans of the UN Working Group on Business and Human Rights;

AddedArticle 9 – paragraph 1 – point f a (new): (f a) the results of an ex ante human rights and environmental impact assessment carried out by the Commission pursuant to article 3 paragraph a (new) do not show a considerable risk of negative impact on human rights or on the environment in the beneficiary country, or proposed measures to prevent and address it are sufficient and have been accepted by the beneficiary country’s government;

AddedArticle 10 – paragraph 1 – point b: (b) the Commission considers, based on examination of the request, including but not limited to the plan of action as indicated in article 9 paragraph 1 (d), as well as on the results of the human rights impact assessment referred to in Article 3, paragraph a (new), that the requesting country fulfils the conditions laid down in Article 9.

AddedArticle 10 – paragraph 2: 2. The requesting country shall submit its request to the Commission in writing. The request shall provide comprehensive information concerning the ratification and implementation of the relevant conventions and shall include the binding undertakings referred to in Article 9, points (d), (e), and (f), including a finalised plan of action.

AddedArticle 10 – paragraph 4: 4. While examining the request, the European Commission shall consult the European Parliament and the Council and the advisory body referred to in Article 13a (new). After examining the request, the Commission is empowered to adopt delegated acts, in accordance with Article 36, to amend Annex I in order to grant a requesting country the special incentive arrangement for sustainable development and good governance by including that country in the list of GSP+ beneficiary countries.

AddedArticle 12 – paragraph 1: 1. The Common Customs Tariff ad valorem duties on all products listed in Annex III and Annex VII, which originate in a GSP+ beneficiary country, shall be suspended according to the tariff suspension schedule referred to in Article 9(2).

AddedArticle 13 – paragraph 1: 1. As of the date of the granting of the tariff preferences provided under the special incentive arrangement for sustainable development and good governance, the Commission shall, with regard to each of the GSP+ beneficiary countries, keep under review and monitor the status of ratification of the relevant conventions and their effective implementation, as well as the cooperation of the GSP+ beneficiary country with the relevant monitoring bodies. In doing so, the Commission shall assess the progress made by the GSP+ beneficiary countries in implementing their plans of action, as well as examine all relevant information, including the conclusions and recommendations of the relevant monitoring bodies as well as duly substantiated information submitted by individual citizens, private sector actors, civil society organisations, representatives of trade unions and other relevant stakeholders. The information may also be submitted via the Single Entry Point, which shall be accessible to stakeholders from both the Union and GSP+ beneficiary countries. The Commission, including through the EEAS and the delegations, should hold regular contacts with local and international civil society to assess the beneficiary countries’ implementation of the conventions listed in annex VI. A cycle of 3 years for the review, monitoring and assessment (hereinafter monitoring cycle) is hereby established. During the application period and monitoring cycle, the Commission shall also enquire the views …

AddedArticle 13 – paragraph 2: 2. A GSP+ beneficiary country shall cooperate with the Commission and provide all information necessary to assess its respect of the binding undertakings referred to in Article 9, points (d) including the implementation of its plan of action, (e), and (f) and its situation as regards Article 9, points (b) and (c).

AddedArticle 13 – paragraph 2 a (new): 2 a. The Commission, where applicable jointly with the EEAS, shall carry out at least one high-level monitoring mission per monitoring cycle to the beneficiary countries in order to assess progress on the ground, including in line with the plans of action. In the framework of the mission, relevant stakeholders, including civil society organizations and human rights defenders in the beneficiary countries shall be duly consulted.

AddedArticle 13 – paragraph 2 b (new): 2 b. At the beginning of each monitoring cycle, the Commission shall send a list of issues to all GSP+ beneficiary countries outlining implementation issues that need to be addressed during the cycle. The lists of issues shall be made publicly available.

AddedArticle 13 – paragraph 2 c (new): 2 c. The plans of action and the recommendations of the Commission and European External Action Service on priority implementation actions shall be taken into account in the EU development finance programming in order to support GSP+ beneficiary countries in attaining their commitments.

AddedArticle 13 a (new): Article 13 a / Advisory Body / 1. The Commission shall be assisted in reviewing, monitoring and assessing the binding undertakings referred to in Article 9, points (d), (e) and (f) by an advisory body composed of stakeholders’ representatives. / 2. The Commission shall consult with the advisory body in regards to the plans of action submitted by the GSP+ beneficiary countries in view of their application to the GSP+ scheme; to that purpose, the participation to the advisory body shall be extended to stakeholders in the beneficiary countries. The Commission shall also consult with and report to the advisory body when assessing the implementation of the plans of action during each monitoring cycle and more generally throughout the cycle as regularly as necessary, including ahead of and after monitoring missions. / 3. The advisory body shall also monitor possible measures by GSP+ beneficiary countries’ legislation underminingthe due diligence requirements under Union law, and in particular Regulations (EU) No 2017/821, (EU) No 995/2010 and (EC) No 2368/2002.

AddedArticle 14 – paragraph 1: 1. By 1 January 2027, and every two years thereafter, the Commission shall present to the European Parliament and to the Council a report on the status of ratification of the relevant conventions, the compliance of the GSP+ beneficiary countries with any reporting obligations under those conventions and the status of the effective implementation thereof, which includes scorecards that are being evaluated with the beneficiary countries and are also based on but not limited to the assessment of the implementation of the plans of action.

AddedArticle 14 – paragraph 2 – subparagraph 1 – point b: (b) the Commission's and where appropriate the European External Action Service’s conclusions on whether each GSP+ beneficiary country respects its binding undertakings to comply with reporting obligations, to cooperate with relevant monitoring bodies in accordance with the relevant conventions and to ensure the effective implementation thereof, including through an assessment of the implementation of its plan of action, and

AddedArticle 14 – paragraph 2 – subparagraph 1 – point b a (new): (b a) a copy of the scorecard that the Commission has evaluated with the beneficiary country

AddedArticle 14 – paragraph 2 – subparagraph 2: The report may include any information from any source the Commission considers appropriate, including from civil society organizations and social partners.

AddedArticle 14 – paragraph 3: 3. In drawing their conclusions concerning effective implementation of the relevant conventions, the Commission and where appropriate the European External Action Service shall assess the conclusions and recommendations of the relevant monitoring bodies. It shall also request the opinion of the European Parliament and the Council, and shall assess, without prejudice to other sources, information submitted by third parties, including complaints submitted through the Single Entry Point, such as governments and international organisations, civil society, and social partners.

AddedArticle 15 – paragraph 1: 1. The special incentive arrangement for sustainable development and good governance shall be withdrawn temporarily, in respect of all or of certain products originating in a GSP+ beneficiary country, where that country does not respect its binding undertakings as referred to in Article 9, points (d), (e) and (f), including in case of major shortcomings in implementing or of systemic failure to implement the plan of action referred to in Article 9 point (d) are identified, or the GSP+ beneficiary country has formulated a reservation which is prohibited by any of the relevant conventions or which is incompatible with the object and purpose of that convention as established in Article 9, point (c).

AddedArticle 15 – paragraph 3: 3. At the request of the European Parliament or where, either on the basis of the conclusions of the report referred to in Article 14 or on the basis of the evidence available, including evidence submitted by the European Parliament through its competent committees and through the relevant resolutions adopted during plenaries, and evidence submitted through a complaint, the Commission has a reasonable doubt that a particular GSP+ beneficiary country does not respect its binding undertakings as referred to in Article 9, points (d), (e) and (f), including with regards to implementation of its plan of action or has formulated a reservation which is prohibited by any of the relevant conventions or which is incompatible with the object and purpose of that convention as established in Article 9, point (c), it shall, in accordance with the advisory procedure referred to in Article 39(2), adopt an implementing act to initiate the procedure for the temporary withdrawal of the tariff preferences provided under the special incentive arrangement for sustainable development and good governance. The Commission shall inform the European Parliament and the Council thereof.

AddedArticle 15 – paragraph 5: 5. The Commission shall provide the GSP+ beneficiary country concerned with every opportunity to cooperate and engage with a view to addressing the violations of its binding undertakings as referred to in paragraph 3 during the period referred to in paragraph 4, point (b).