EU considers trade assistance to relieve tsunami-affected countries
European Union Trade Commissioner Peter Mandelson said Tuesday the EU was considering ways to use trade policy to provide relief for regions and businesses affected by the tsunami in the Indian Ocean.
Mandelson said he is considering trade measures to assist rebuilding in the countries affected, notably by speeding up measures to improve their access to the EU markets.
“As far as immediate trade measures are concerned, the European Commission’s delegations in affected countries are working to identify businesses that are affected by EU trade defense measures such as antidumping duties,” the EC said. These could be reviewed with the possibility of suspending the defense measures.
The EC will also consider ways of changing its trade related assistance to affected countries to help local businesses boost their exports. For example, helping affected businesses to comply with sanitary and food safety standards would be a way to offer assistance in increasing exports.
In the medium term, the EC will consider ways to fast-track the adoption and implementation of its new Generalized System of Preferences (GSP) scheme, which provides preferential access to imports from poor developing countries.
“Sri Lanka, Indonesia, Thailand and India will be among the greatest beneficiaries of the new regime,” the Brussels-based body said.
Under the new system, Sri Lanka, for example, will receive duty free access to the EU for almost all its GSP exports including its textile and clothing exports. India, Indonesia and Thailand will benefit from reduced duties and wider product coverage, especially on seafood exports.
The EC said the EU cannot make tariff concessions for individual countries without contravening World Trade Organization rules. However, it added the EC is ready to support WTO-wide initiatives to agree on tariff concessions for the affected countries.