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'Everything but Arms':  The end of transitional quotas for sugar and rice

 

Since 2001, under its "Everything But Arms" (EBA) arrangement, the EU has been granting all least developed countries (LDC) duty free access to the EU market for all their exports (except arms and ammunitions) with some limited transitional restrictions for sugar and rice. These remaining duty free quotas have been progressively expanded every year since 2001 and have lapsed completely on 31st August 2009 and 30 September 2009 respectively. All imports of rice and sugar originating in LDCs are therefore now fully liberalised.

 

From 1st October 2009 onwards, the EBA will thus grant full 100% duty-free and quota-free market access for all products from all LDCs (except for the imports of arms and ammunitions).

 

The EU Heads of State and Government at their informal meeting of 17 September 2009 invited the G-20 to adopt the EBA initiative without delay in order to support people in developing countries suffering from the crisis.

 

Background:

The EU's EBA arrangement is incorporated into the Council Regulation (EC) No 732/2008 on the Community's scheme of generalised preferences (GSP). EBA is not time-limited and applies to all LDCs as designated by the UN: http://www.unohrlls.org/en/ldc/related/62/

 

The EU's EBA initiative was a particular response to the Brussels Plan of Action for LDCs, adopted at the 3rd UN Conference for LDCs in Brussels in May 2001. The objective of the initiative is to facilitate the integration of LDCs in the world economy and in international trade.

 

When the EBA arrangement entered into force in 2001, transitional provisions were established for the imports of bananas, rice and sugar, which allowed for duty free import of these products under a gradually expanding quota regime. For bananas, the quota regime ended already end 2006. From 1st October 2009, the quota restrictions for the two remaining products, sugar and rice, have also been fully liberalised.

 

Total imports under EBA have gradually increased to reach € 5.8 billion in 2008. The rough value of the preferences for 2008 provided (in terms of nominal duty loss if the same products had been imported and duties paid under the EU's standard MFN tariff rate) can be estimated at €657 million.

 

The 'Import Tariffs' section of the Export Helpdesk reflects these recent changes following the end of these quotas.

More info on the EBA: http://ec.europa.eu/trade/issues/global/gsp/eba/index_en.htm

 

-- Export Helpdesk  Issue 8, December 2009

 

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