Tsunami relief: Europe to lower trade tariffs

The EU said yesterday that it would accelerate moves to lower trade tariffs on products from the world’s poorest countries, including many hit by the Asian tsunami.

The 25 EU governments gave their approval to a European Commission proposal to move up the planned reform of its tariff system to April 1, from July 1.

The EU head office said the overhaul of the EU’s Generalised System of Preferences, or GSP, “will improve access to the EU market for imports from - among others – tsunami-hit countries”.

Under the reformed trade preference rules, Sri Lanka, one of the hardest hit by the tsunami, will benefit “from duty free access to the EU for all its GSP products, including textiles” the European Commission said in a statement.

“India, Indonesia and Thailand will benefit from improved market access conditions, in particular for fishery products,” it added.

The reform was proposed last October by then EU Trade Commissioner Pascal Lamy.

Moves to accelerate its adoption still needs formal approval from the European Parliament and a final go-ahead from EU governments, the EU said.

The overhaul aims to bring EU trade rules in line with the World Trade Organisation, which has called on the 25-nation bloc to reform its trade system.

The plan would replace five separate trade tariff systems with three, including one that would offer more market access for up to 72,000 products from developing countries, providing they abide by international human rights, environment and labour standards. They will also have to combat the drug trade.

European Commission President Jose Manuel Barroso had said that his office would look at easing trade restrictions in another way to help reconstruction efforts in Asia after the December 26 disaster.