RESTRICTED
WORLD TRADE WT/COMTD/W/11/Add.1
14November 1995
ORGANIZATION(95-3533)
Committee onTrade andDevelopment
Fourth Session
17November 1995
NOTES ONTHE PARTICIPATION OFDEVELOPING COUNTRIES
INTHE WORLD TRADING SYSTEM
Note bytheSecretariat
Addendum
Generalized System ofPreferences
ThisAddendum summarizes changes intheGeneralized System ofPreferences (GSP) schemes
notified totheSecretariat during thelasttwelve months.
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TheEuropean Communities announced theextension into1995oftheapplication oftheirGSP
scheme inrespect ofcertain agricultural products originating indeveloping countries. Italsoannounced
afouryearGSPscheme (1995-98) inrespect ofcertain industrial products. Theprinciple features
ofthenewscheme are:
- Modulated preferences (inplace ofquotas, fixedduty-free amounts orceilings) applicable until
January 1999, unless inexceptional situations thesafeguard clause isapplied. Preference
margins based onthesensitivity oftheproduct: 85percentofthem.f.n. rateforverysensitive
products; 70percentofthem.f.n. rateforsemi-sensitive products; 35percentofthem.f.n.
ratefornon-sensitive products; duty-free fornon-sensitive products.
- Phasing outofpreferences bycountry andsector.
Acombination ofadevelopment index andanexport specialization index determines
thetime-schedule forphasing outpreferences forlisted countries andsectors; not
applicable when preferential exports bythecountry inaspecific sector donotexceed
2percentofbeneficiaries 'exports totheEuropean Community inthatsector.
When preferential imports from anycountry inagiven sector exceed 25percentof
totalexportsbythatcountryinthatsector,preferentialmarginsapplicabletothatcountry
andtothatsector willbeabolished by1January 1996.
According tospecific criteria, themost advanced beneficiary countries cease tobe
beneficiaries under theGSPscheme by1January 1998.
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- Duty-free entry forallproducts covered bythescheme willbeapplicable toimports fromleast-
developed countries andtospecified countries thatconduct, tothesatisfaction oftheEuropean
Commission, acampaign tocombat drugs.
- Special incentive arrangements intheformofadditional margins ofpreferences forcountries
thatapply specified labour standards andtocountries which haveadopted, andactually apply,
standards laiddown bytheInternational Tropical Timber Organization.
Thegovernment ofJapan announced areform oftheirGSPscheme involving areduction of
tariffs applicable toagricultural products (effective 1April 1995) andtofishery products (effective
1January 1995). Armenia, Ukraine, Estonia, Georgia, Kazakhstan, Turkmenistan, Belarus, Latvia,
Lithuania, Albania, theFormer Yugoslav Republic ofMacedonia, theRepublic ofMoldova, and
South Africa wereadded tothelistofdeveloping country beneficiaries. Thestatus ofBotswana was
changed fromaleast-developed country beneficiary toadeveloping country beneficiary. Angola became
eligible asaleast-developed country beneficiary. Ceiling quotas forFiscal Year1995wereannounced.
Statistical dataonimports from beneficiaries from April 1994 toMarch 1995 were transmitted.
Thegovernment ofNew Zealand increased theGSPproduct graduation benchmark from
$NZ120,000 to$NZ121,000 witheffect from 1July1995.
Thegovernment ofNorway announced, consequent tothetariffication ofallnon-tariff border
measures required bytheWTO Agreement onAgriculture, anewGSPscheme foragricultural products
effective from 1July1995. Thenewscheme provides for:
- Freeaccess forleast-developed countries 'exports withtheexception offlour, grains andfeed
stuffs (reduction of30percentwithin indicative tariff ceilings).
- Fortheexports ofdeveloping countries, there willbeduty-free access forspecified products;
a100percenttariff reduction ontheindustrial element ofcertain industrially produced
agricultural products; andtariff reductions ranging from 10percentto50percentonother
specified products.
TheUnited States announced theextension oftheirGSPscheme through 31July1995. As
of7April 1995, exports from theWest Bank andGaza Strip were eligible forduty-free treatment.