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 |
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| Joe
Borg |
Peter
Mandelson |
No. 16/05
February 10, 2005
EUROPEAN COMMISSION
ACCELERATES PREFERENTIAL TRADE MEASURES AND TAKES FURTHER
ACTION TO HELP REBUILD FISHERIES AND AQUACULTURE SECTORS
IN TSUNAMI-HIT COUNTRIES
In response to the Tsunami
disaster, the European Commission has today proposed to
accelerate the entry into force of the new EU preferential
trade regime for developing countries. The new Generalized
System of Preferences (GSP) will now come into effect
on April 1. The focus of the new regime is on developing
countries most in need such as the Maldives, Sri Lanka,
Thailand and Indonesia. The EU GSP,
already by far the most generous in the world, provides
for further tariff concessions, in particular in the clothing
and the fishery sectors. Its benefits will extend to all
the countries affected by the recent Tsunami.
The Commission also took another step forward today in its
action to help rehabilitate the fisheries
and aquaculture sector in the areas hit by the tsunami
that struck in the Indian Ocean on 26 December. Thus, it
adopted a Decision to provide immediate and more long-term
technical expertise and assistance to the countries concerned.
Experts will contribute to the assessment of the reconstruction
requirements in fisheries
and aquaculture in these areas. They will also assist in
the implementation of the agreed rehabilitation measures
in this sector. The Commission also proposes to amend some
rules in the Fisheries Fund, the Financial
Instrument for Fisheries Guidance (FIFG), so as to remove
the legal obstacles to the co-financing of a possible transfer
of fishing vessels from the European Union to the affected
areas. The Commission wants to ensure that, if the assessment
currently being carried out by the UN Food and Agriculture
Organization (FAO) in these areas show that such a permanent
transfer could contribute to the rebuilding of the local
fishing fleets, the necessary measures are in place to effect
it. These initiatives are part of a package of measures
aiming to help the rebuilding of the devastated fisheries
and aquaculture sector which, after tourism, has been the
most affected economic sector in the countries concerned.
“The Council and European Parliament have already expressed
support for the measures envisaged by the Commission to
help rebuild the fisheries sector in the areas concerned.
In co-ordination with the FAO and the Member States, we
must ensure that our measures respond to the needs of the
local sector in a way that will contribute to sustainable
fisheries. Monitoring of the implementation will also be
crucial to the success of these measures,” Commissioner
Joe Borg, responsible for Fisheries
and Maritime Affairs, commented.
The Commission Decision provides for the immediate mobilizing
of European and international expertise for impact assessment
and identification of reconstruction requirements in the
countries and areas concerned. This will subsequently be
followed by the provision of relevant expertise to ensure
the necessary implementation and provision of financial
and technical assistance on a longer-term basis.
With regard to the possible transfer of vessels, the Commission
proposes that to be eligible, vessels will have to be under
12 metres and between 5 and 20 years old. The transfer of
vessels to the affected areas would end on 30 June 2006.
The grants to be allocated to EU vessel owners would be
those currently available under the FIFG for the permanent
removal of such vessels from the EU fleet. An additional
premium of up to 20% is proposed to meet the cost of transport
to the affected areas by public or private interests and
to ensure that the vessel is equipped and seaworthy.
In parallel, the European Commission is working on simplifying
and, where appropriate, relaxing the rules of origin to
allow countries to take fuller advantage of the benefits
of GSP.
European Commissioner for Trade
Peter
Mandelson said: “By accelerating this boost to developing
countries’ market access, the European Union has acted
quickly to provide relief for countries affected by the
recent tsunami. By lowering tariffs for poorer countries,
we are extending benefits to all developing countries.”
Background
The EU GSP is the preferential trade regime the EU has been
granting to developing countries for the last 30 years.
It is worth more than €52 billion in trade flows and is
by far the most important preferential trading regime in
the world, providing more market access for developing countries
than the preferential access schemes of the US, Japan and
Canada combined. Following the Tsunami of December 2004,
the European Commission identified the rapid entry into
force of the new EU GSP as a way to aid countries affected
by the disaster. The Commission is proposing to bring forward
its entry into force by 3 months, to 1 April 2005. The acceleration
has already been welcomed by EU Member States and the European
Parliament.
Through tariff concessions the new regime will open about
€3 billion worth of new trade flows for countries affected
by the tsunami. In the new GSP, all fishery products will
benefit from tariff cuts. In the case of Sri Lanka, which
will benefit from the special incentive scheme aimed at
encouraging sustainable development and good governance
(GSP Plus), this implies that about 90% of exports, including
clothing items, will enter the EU at zero duty. In the case
of Thailand, the new concessions will apply to extremely
sensitive products such as shrimp. Indonesia and India will
benefit from new tariff cuts for their textile and shoes
sectors respectively.
Tariffs for Thai shrimp will fall from 12% [Most Favored
Nation (MFN) rate] to 4.2%. Tariffs for Indian textiles
and clothing will be set at 9.5% instead of 12% under MFN.
Tariffs for shoes from Indonesia and Thailand will drop
from 17% to 13.5%.
Further Contact Information
Press and Media Relations
Delegation of the European Commission
2300 M Street, NW
Washington, DC 20037
http://www.eurunion.org/PressRoom
Tel: 202-862-9552
Fax: 202-429-1766
