|
EC Clears Trade Access
Package for Poorest Countries
EVERYTHING
BUT ARMS
Published March 1, 2001;
Bangkok, Thailand
Summary
February 2001, The EU cleared
a proposal allowing imports of "everything but arms" from
the world's poorest 48 countries to enter the EU market duty
free by the year 2009. However, the three most sensitive products,
sugar, rice and bananas will gain access to the EU market
over time in phases. European Trade Commissioner Pascal Lamy
said: '…At the end of the day, they [the 48 countries] will
have 100% access with no exclusions, except arms of course.'
Thailand is not a member
of the 48 countries, however, a provision; permitting "regional
cumulation", allows Thailand to participate. Regional cumulation
means that the any of the 48 countries can export products
to the EU, which have been imported from either an ASEAN*
or SAARC* nation. However the following criteria apply to
this trade process.
1. The product exported
to the EU must have achieved at least 100 percent value-added
to import value
2. Processing in the LLDC* must exceed "minimal operations"
3. The import from the LLDC* to the EU must be accompanied
with adequate proof of the originating
status
4. Rules of regional cumulation are identical to those laid
down for the GSP
5. Each country of a regional group must ensure the correct
issue and verification of proofs of origin.
* ASEAN = Association of South East Asian Nations
* SAARC = The South Asian Association for Regional Cooperation
* LLDC = land-locked developing countries e.g. African and
Pacific Island nations
Possible Impacts on Thailand's
Agriculture Sector
|
Favorable
Affects
|
Adverse
Affects
|
| Increase
incentives for LLDCs to import goods from Thailand for
domestic consumption |
LLDCs may import low
cost goods from Thailand for domestic consumption, while
exporting domestic production to the EU |
| Increased incentive
for LLDCs to import raw commodities from Thailand for
processing, and re-export the goods under regional cumulation
rules |
Value-added Thai exports
to the EU will likely decrease as zero duty goods from
the LLDCs will be more desirable |
| Thailand can take
advantage of the zero import duty on goods to the EU by
investing in processing and export plants in LLDCs. |
LLDCs will have a
more favorable environment over Thailand for Foreign Direct
Investment (FDI) in Agribusiness. |
48 Countries involved
African, Caribbean and
Pacific (ACP) countries: Sudan, Mauritania, Mali, Burkina
Faso, Niger, Chad, Cape Verde, Gambia, Guinea-Bissau, Guinea,
Sierra Leone, Liberia, Tago, Benin, Central African Republic,
Equatorial Guinea, Sao Tome and Principle, Democratic Republic
of Congo, Rwanda, Burundi, Angola, Ethiopia, Eritrea, Djibouti,
Somalia, Uganda, Tanzania, Mozambique, Madagascar, Comoros,
Zambia, Malawi, Lesotho, Haiti, Solomon Islands, Tuvalu, Kiribati,
Vanuatu and Samoa.
Non-ACP countries:
Yemen, Afghanistan, Bangladesh, Maldives, Nepal, Bhutan, Myanmar,
Laos, and Cambodia
Cumulation will be
allowed with…
ASEAN: Cambodia, Thailand,
Laos, Vietnam, Indonesia, Malaysia, Brunei, Singapore, Philippines
SAARC: Pakistan, India,
Bangladesh, Maldives, Sri Lanka, Nepal, Bhutan
For
questions or comments contact us
|
