HC Deb 07 May 1998 vol 311 cc462-3W
Dr. Tonge

To ask the Secretary of State for International Development if she will list the proposed changes in the generalised system of preferences for developing countries. [40619]

Mr. Foulkes

Two key regulations have been discussed and agreed within the Generalised System of Preferences (GSP) Working Group during the UK Presidency. These are the Regulation on Least Developed Countries (LDCs) and the Regulation on Special Incentives. UK policy on both of these is set out in the Government's White Paper on International Development published in November 1997. The Department for International Development (DFID) and DTI have worked closely on formulating these proposals. DTI are the lead policy department in Whitehall, but DFID has worked closely with DTI in formulating and implementing the Government's policy.

The proposed Regulation on LDCs was agreed by the EU General Affairs Council in March this year. This requires the EU to extend market access terms, similar to those available under the Lome Convention, to the nine non-African Caribbean and Pacific LDCs and to apply these retrospectively from 1 January 1998. We therefore welcome this Regulation which we see as an important first step towards our long-term goal of duty-free market access to the EU market for all LDCs and for the eventual agreement to eliminate tariffs on LDC products within a bound World Trade Organisation scheme.

The proposed Regulation on Special Incentives provides for additional trade preferences to be granted to developing countries that meet certain labour and environmental standards. The GSP Working Group has concluded its deliberations on the proposal which will be submitted to the Council in May.

The Commission is expected to come forward with proposals for the Mid-Term Review of the GSP in June this year. This is not expected to be a major overhaul of the Scheme. Nevertheless, the UK will be pressing for as generous as possible an outcome, with a view to laying down markers for the Full-Term Review in 2004.