What changed between the draft committee report and the plenary report

Changed:Recital 9: (9) The standard GSP arrangement should be granted to all those developing countries which share a common development need and are in a similar stage of economic development.development Additionally,and thiswhich arrangementhave shouldcommitted notto besigning appliedand inratifying the eventinternational conventions listed in Annex VI. If those countries fail to ratify the international conventions that are covered by this Regulation within five years from the application of the trade preferences.preferences, the scheme should be suspended. There is no definition of ‘developing country’ at the level of the WTO, and it is left to preference granting countries to determine the list of GSP-eligible developing countries. Countries which have successfully completed their transition from centralised to market economies, and are today powerful economies with a strong position in international trade, such as China, Hong Kong, Macao and Russia, should not be considered as developing countries in the context of the GSP, and should, therefore, be removed from the list of eligible countries. Countries which are classified by the World Bank as high-income or upper-middle income countries have per capita income levels allowing them to attain higher levels of diversification without the scheme's tariff preferences. They are at a different stage of economic development and do not, therefore, share the same development, trade and financial needs as lower income or more vulnerable developing countries. In order to prevent unjustified discrimination, they need to be treated differently; therefore, they do not benefit from the standard …d…

Changed:Recital 11: (11) The special incentive arrangement for sustainable development and good governance (GSP+) is based on the integral concept of sustainable development, as recognised by international conventions and instruments such as the 1986 UN Declaration on the Right to Development, the 1992 Rio Declaration on Environment and Development, the 1998 International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work, the 2000 UN Millennium Declaration, the 2002 Johannesburg Declaration on Sustainable Development, the ILO Centenary Declaration for the Future of Work of 2019, the Outcome Document of the UN Summit on Sustainable Development of 2015 "Transforming Our World: the 2030 Agenda for Sustainable Development", the UN Guiding Principles on Business and Human Rights, and the Paris Agreement on Climate Change under the UN Framework Convention on Climate Change. Consequently, the additional tariff preferences provided for under the special incentive arrangement for sustainable development and good governance should be granted to those developing countries which, due to a lack of diversification, are economically vulnerable, have ratified and started implementing core international conventions on human and labour rights, climate and environmental protection and good governance, commit to ensuring the effective implementation and to collaborate on the monitoring thereof. The special incentive arrangement for sustainable development and good governance should help those countries to a……

Removed:Recital 12: (12) Countries graduating from the Least-Developed Countries (LDC) category established by the UN should be incentivised to continue on the path of sustainable development. For this purpose, the economic vulnerability criteria to qualify for the special incentive arrangement for sustainable development and good governance should be eased compared to Regulation (EU) No 978/2012, to facilitate access by a larger number of countries graduating from the least developed country category. The continued and sustained progress towards ratifying the international conventions covered by this Regulation should be closely monitored, and EU development finance programming should be designed to duly take this objective into consideration.

Added:Article 11 a (new): (11a) The Union has set ambitious goals to promote sustainable development in its human, social, economic and environmental dimensions, notably through the European Green Deal, the Circular Economy Action Plan, the Farm to Fork Strategy, or in the areas of sustainable corporate due diligence and de-forestation, which will trigger fundamental changes in trade patterns with relevant impacts on the GSP scheme during the next decade. The implementation of the generalized scheme of tariff preferences should integrate the current discussions on EU initiatives, which will entail for Union products and products imported into the Union from third countries significantly increased environmental, social and health production standards.

Removed:Recital 13: (13) Preferences should be designed to promote further economic growth and, thereby, to respond positively to the need for sustainable development. Targeted EU aid for trade and development finance, including blended finance and guarantees, should be provided accordingly, to help promote sustainable trade and investment towards production capacity, diversification and value addition, in particular by lower-income countries. Under the special incentive arrangement for sustainable development and good governance, the ad valorem tariffs should, therefore, be suspended for the beneficiary countries concerned. The specific duties should also be suspended, unless combined with an ad valorem duty.

Added:Article 11 b (new): (11b) The EU should engage with beneficiary countries, on a common understanding and in a continuous and cooperative manner, to help them reach and implement international, social, human, and environmental standards, while taking into account the countries’ level of development.

Removed:Recital 15: (15) Countries that have been granted the special incentive arrangement for sustainable development and good governance in accordance with Regulation (EU) No 978/2012 should submit a new application within two years after the date of application of this Regulation. In order, however, to ensure continuity and legal certainty for economic operators, the tariff preferences under the special incentive arrangement for sustainable development and good governance provided for in Regulation (EU) No 978/2012 are to be maintained during the period in which their application is assessed. The Union should agree, as much as possible, to request technical and financial assistance from applicant countries related to the ratification and implementation of the conventions

Added:Article 11 c (new): (11c) By putting more emphasis on the effective implementation of the core international conventions referred to in Annex VI, and as a measure of positive transformation, the scheme should contribute to this objective and facilitate the socio-economic and environmental conditions needed to progressively achieve reciprocity in production standards by the beneficiary countries in the long term.

Removed:Recital 15 a (new): (15a) The application for the special incentive arrangement for sustainable development should comprise, among others, a public plan of action detailing priority-oriented list of measures to be taken which are considered necessary to effectively implement the relevant international conventions. This plan of action, on which the beneficiary country should have reached a common understanding with the Commission and where appropriate the European External Action Service, should also include deadlines and identify the relevant bodies of the beneficiary country responsible for its implementation.

Added:Recital 12: (12) Countries graduating from the Least-Developed Countries (LDC) category established by the UN should be incentivised to continue on the path of sustainable development. For this purpose, the economic vulnerability criteria to qualify for the special incentive arrangement for sustainable development and good governance should be eased compared to Regulation (EU) No 978/2012, to facilitate access by a larger number of countries graduating from the least developed country category. The continued and sustained progress towards ratifying the international conventions covered by this Regulation should be closely monitored by the Commission, and EU development finance programming should be designed to duly take this objective into consideration.

Removed:Recital 16: (16) The Commission and where appropriate the European External Action Service should monitor the status of ratification of the international conventions on human and labour rights, environmental protection and good governance and their effective implementation, by assessing in a transparent manner the progress made in the implementation of the plan of action, examining the relevant information, in particular where available the conclusions and recommendations of the relevant monitoring bodies established under those conventions. This monitoring should also be based on high-level missions on the ground. Every three years, the Commission should present to the European Parliament and the Council a report on the status of ratification of the respective conventions, the compliance of the beneficiary countries with any reporting obligations under those conventions, and the status of the implementation of the conventions in practice, notably on the basis of the implementation of the plan of action. In their conclusions on the monitoring, the Commission and, where appropriate, the European External Action Service should provide clear recommendations on issues and actions to be prioritised for the following period.

Added:Recital 13: (13) Preferences should be designed to promote further sustainable growth and, thereby, to respond positively to the need for sustainable development. Targeted EU aid for trade and development finance, including blended finance and guarantees, should be provided accordingly, to help promote sustainable trade and investment towards production capacity, diversification and value addition, in particular by lower-income countries. Under the special incentive arrangement for sustainable development and good governance, the ad valorem tariffs should, therefore, be suspended for the beneficiary countries concerned. The specific duties should also be suspended, unless combined with an ad valorem duty.

Added:Recital 15: (15) Countries that have been granted the special incentive arrangement for sustainable development and good governance in accordance with Regulation (EU) No 978/2012 should submit a new application within two years after the date of application of this Regulation. In order, however, to ensure continuity and legal certainty for economic operators, the tariff preferences under the special incentive arrangement for sustainable development and good governance provided for in Regulation (EU) No 978/2012 are to be maintained during the period in which their application is assessed. The Union should agree, as much as possible, to provide technical and financial assistance for applicant countries related to the ratification and implementation of the conventions. The continued and sustained progress towards ratifying and implementing the core international conventions should be closely monitored, and EU technical and financial assistance should be designed to duly take this objective into consideration.

Added:Recital 15 a (new): (15a) The application for the special incentive arrangement for sustainable development should comprise, among others, a public forward-looking plan of action detailing priority-oriented list of measures to be taken which are considered necessary to effectively implement the relevant international conventions. These measures should constitute the benchmarks for the progressive suspension of tariffs and be listed in a tariff suspension schedule, included to the plan of action. This plan of action, on which the beneficiary country should have reached a common understanding with the Commission and where appropriate the European External Action Service, should also include timeframes and identify the relevant bodies of the beneficiary country responsible for its implementation. The validity of the plans of action is subjected to the duration of this Regulation.

Added:Recital 16: (16) The Commission and where appropriate the European External Action Service should monitor the status of ratification of the international conventions on human and labour rights, environmental protection and good governance and their effective implementation, by assessing in a transparent manner the progress made in the implementation of the plan of action, examining the relevant information, in particular where available the conclusions and recommendations of the relevant monitoring bodies established under those conventions. This monitoring should also be based on high-level missions on the ground. In the framework of such missions, relevant stakeholders, including civil-society organisations and human rights defenders in the beneficiary countries should be consulted. Every three years, the Commission should present to the European Parliament and the Council a report on the status of ratification of the respective conventions, the compliance of the beneficiary countries with any reporting obligations under those conventions, and the status of the implementation of the conventions in practice, notably on the basis of the implementation of the plan of action. In their conclusions on the monitoring, the Commission and, where appropriate, the European External Action Service should provide clear recommendations on issues and actions to be prioritised for the following period.

Changed:Recital 16 b (new): (16b) The civil society and other relevant stakeholders should be consulted throughout the monitoring cycle,cycle based on public procedures and deadlines, and the information they submit should be duly taken into account. Additionally, an advisory body composed of their representatives should be set up, to assist the Commission in reviewing, monitoring and assessing the progress made by the beneficiary countries.

Removed:Recital 17: (17) For the purposes of monitoring of implementation and, where applicable, withdrawal of tariff preferences, reports from relevant monitoring bodies are essential. However, such reports may be, to the widest possible extent, supplemented by other information available, including information obtained under bilateral or multilateral technical assistance programmes, and through other sources of information, provided they are accurate and reliable. This could include information from the Union institutions, bodies, offices or agencies, governments, international organisations, civil society, social partners, representatives of the economic interests, or complaints received through the SEP provided they satisfy the relevant requirements. Shortcomings identified during the monitoring process should inform the Commission’s future programming of development assistance and the provision of technical assistance in a more targeted manner.

Added:Recital 16 c (new): (16c) The Commission should promote a strong sustainable development dimension in global value chains, in line with the due diligence obligations set out in the United Nations Guiding Principles on Business and Human Rights.

Removed:Recital 18: (18) In July 2020, the Commission appointed the Chief Trade Enforcement Officer with the role of enforcing trade rules. In this connection, in November 2020, the Commission launched a new complaints mechanism, the Single Entry Point (‘SEP’), as part of its increased efforts to strengthen the enforcement and implementation of trade commitments. Through the SEP, the Commission receives complaints on various matters related to trade policy, including breaches of the GSP commitments. The SEP is accessible to citizens, entities, stakeholders or civil society established in the EU or in the beneficiary countries and complaints may be submitted anonymously. Such new system of complaints should be integrated and formalised within the framework of this Regulation.

Added:Recital 17: (17) For the purposes of monitoring of implementation and, where applicable, subsequent granting or withdrawal of tariff preferences, reports from relevant monitoring bodies are essential. However, such reports may be, to the widest possible extent, supplemented by other information available, including information obtained under bilateral or multilateral technical assistance programmes, and through other sources of information, provided they are accurate and reliable. This could include information from the Union institutions, bodies, offices or agencies, governments, international organisations, civil society, social partners, representatives of the economic interests, or complaints received through the SEP provided they satisfy the relevant requirements. Shortcomings identified during the monitoring process should inform the Commission’s future programming of development assistance and the provision of technical assistance in a more targeted manner.

Removed:Recital 21: (21) Common Customs Tariff duties on non-sensitive products should continue to be suspended, while duties on sensitive products should enjoy a tariff reduction, in order to ensure a satisfactory utilisation rate while at the same time taking account of the situation of the corresponding Union industries. Recognising that economic development, social development, and environmental protection are interdependent and mutually supportive components of sustainable development, and aiming at further supporting the economic diversification of beneficiary countries, an additional tariff reduction should be granted to sensitive products certified as sustainable by the recognised voluntary sustainability standards based on the principles of the conventions listed in Annex VI.

Added:Recital 18: (18) In July 2020, the Commission appointed the Chief Trade Enforcement Officer with the role of enforcing trade rules. In this connection, in November 2020, the Commission launched a new complaints mechanism, the Single Entry Point (‘SEP’), as part of its increased efforts to strengthen the enforcement and implementation of trade commitments. Through the SEP, the Commission receives complaints on various matters related to trade policy, including breaches of the GSP commitments. The SEP is accessible to citizens, entities, trade unions, stakeholders, human rights defenders, and civil society established in the Union or in the beneficiary countries and the Commission should ensure the confidentiality of complaints including the identity of complainants and all relevant elements pertaining to the complaint. Such new system of complaints should be integrated and formalised within the framework of this Regulation.

Removed:Recital 22: (22) Tariff reductions should be sufficiently attractive, in order to motivate traders to make use of the opportunities offered by the scheme. Therefore, the ad valorem duties should generally be reduced by a flat rate of 3,5 percentage points from the 'most favoured nation' duty rate, while such duties for textiles and textile goods should be reduced by 20 %. Specific duties should be reduced by 30 %. For sensitive products certified by the recognised voluntary sustainability standards the ad valorem duties should be reduced by a flat rate of 4,5 percentage points from the 'most favoured nation' duty rate, while such duties for textiles and textile goods should be reduced by 30%. Specific duties should be reduced by 40%. Where a minimum duty is specified, that minimum duty should not apply.

Added:Recital 21: (21) Common Customs Tariff duties on non-sensitive products should continue to be suspended, while duties on sensitive products should enjoy a tariff reduction, in order to ensure a satisfactory utilisation rate and maximise the development effect while at the same time taking account of the situation of the corresponding Union industries.

Removed:Recital 24: (24) Product graduation should be based on criteria related to sections and chapters of the Common Customs Tariff. Product graduation should apply in respect of a section or sub-section in order to reduce cases where heterogeneous products are graduated. The graduation of a section or a sub-section (made up of chapters) for a beneficiary country should be applied when the section meets the criteria for graduation over three consecutive years, in order to increase predictability and fairness of graduation by eliminating the effect of large and exceptional variations in the import statistics. Product graduation should not apply to the beneficiary countries of the special incentive arrangement for sustainable development and good governance (GSP+) and the beneficiary countries of the special arrangement for the least-developed countries (EBA) as they share a very similar economic profile rendering them vulnerable because of a low, non-diversified export base. The tariff preferences provided for in this Regulation apply to products originating in the beneficiary countries in accordance with the rules of origin laid down in the Union Customs Code and the legal acts adopted in accordance with the powers conferred by that Code, in particular Commission Delegated Regulation (EU) 2015/244619. and Commission Implementing Regulation (EU) 2015/244720. Regional cumulation between countries of different regional groups and extended cumulation is an important instrument to support regional …

Added:Recital 22: (22) Tariff reductions should be sufficiently attractive, in order to motivate traders to make use of the opportunities offered by the scheme. Therefore, the ad valorem duties should generally be reduced by a flat rate of 3,5 percentage points from the 'most favoured nation' duty rate, while such duties for textiles and textile goods should be reduced by 20 %. Specific duties should be reduced by 30. Where a minimum duty is specified, that minimum duty should not apply.

Removed:Recital 25: (25) The reasons for temporary withdrawal of the arrangements under the scheme should include serious and systematic violations of the principles laid down in international conventions concerning core human rights (including certain principles of international humanitarian law enshrined in those conventions), labour rights, climate and environmental protection, and good governance, so as to promote the objectives of those conventions. Tariff preferences under the special incentive arrangement for sustainable development and good governance should be temporarily withdrawn if the beneficiary country does not respect its binding undertaking to maintain the ratification and effective implementation of those conventions or to comply with the reporting requirements imposed by the respective conventions, or to maintain the effective implementation of the plan of action provided in its request to benefit from the arrangement or if the beneficiary country does not cooperate with the Union's monitoring procedures as set out in this Regulation. The temporary withdrawal should continue until the reasons justifying it no longer apply. In situations characterised by an exceptional gravity of the violations, the Commission should have the power to respond rapidly by adopting measures within a shorter timeline. Under the Union’s zero tolerance approach for child labour the reasons for temporary withdrawal should include exports of goods made by internationally prohibited child labour, as wel…

Added:Recital 23 a (new): (23a) Safeguards are essential mechanisms to reduce beneficiary countries’ dependency on a few products, to focus preferences on less competitive products and to stimulate economic growth. The scheme should reinforce the Union’s financial and economic interests by providing effective and enforceable safeguards to sensitive products which should at the same time improve the diversification of their economies and the implementation of social and environmental rights in beneficiary countries.

Removed:Recital 25 a (new): (25a) Temporary withdrawal of the arrangements should be considered as a last-resort measure. Whenever the record of compliance with the relevant obligations set out in this Regulation seriously deteriorates, the Commission and the EEAS should step up dialogue with the beneficiary countries and launch a process of enhanced engagement where countries commit to actions through the implementation of targeted roadmaps leading to discernible progress generally in the short term or, whenever issues are more complex and sensitive, over the medium term. After the launch and during the overall duration of the withdrawal procedure, beneficiary countries should be given the possibility to start engaging anytime. Whenever the enhanced engagement is extended into a second year, the Commission should add the country onto a public list, with a view to providing predictability and maximising leverage.

Added:Recital 24: (24) Product graduation should be based on criteria related to sections and chapters of the Common Customs Tariff. Product graduation should apply in respect of a section or sub-section in order to reduce cases where heterogeneous products are graduated. The graduation of a section or a sub-section (made up of chapters) for a beneficiary country should be applied when the section meets the criteria for graduation over three consecutive years, in order to increase predictability and fairness of graduation by eliminating the effect of large and exceptional variations in the import statistics. Product graduation should not apply to the beneficiary countries of the special incentive arrangement for sustainable development and good governance (GSP+) and the beneficiary countries of the special arrangement for the least-developed countries (EBA) as they share a very similar economic profile rendering them vulnerable because of a low, non-diversified export base. The Commission should monitor, in cooperation with stakeholders and civil society, the development and export potential of beneficiary countries that could potentially reach the Upper Middle-Income Status. This monitoring should aim to improve the targeting of sensitive products under the product graduation mechanism, provide clear recommendations on actions to improve export diversification and ensure that tariff preferences under GSP are withdrawn from competitive products in order to provide further opportunities in the …

Added:Better terms for regional cumulation should be encouraged (as outlined under recital24 and in article 33 (3)), as it will further enable GSP countries to develop their supply chains and become better integrated with the global economy. Thus, it is important that provisions on cumulation does not afford disproportionate requirements for GSP countries to cumulate their products with regional partners, as this would merely discourage investing into developing more advanced regional supply chains. The current wording asks GSP beneficiaries for"sufficient evidence that cumulation responds to its development, financing and trade needs". While it is not quite clear what this entails, the Commission should be encouraged to lower administrative burdens, and formal requirements, to an absolute minimum, to foster the best grounds for GSP partners to cumulate freely.

Added:Recital 25: (25) The reasons for temporary withdrawal of the arrangements under the scheme should include serious and systematic violations of the principles laid down in international conventions concerning core human rights (including certain principles of international humanitarian law enshrined in those conventions), labour rights, climate and environmental protection, and good governance, so as to promote the objectives of those conventions. In determining whether such serious and systematic violations exist, the Commission should take into account all available assessments, comments, decisions, recommendations and conclusions of the relevant monitoring bodies and substantiated concerns expressed by the European Parliament, the Council, international organisations, and civil society including trade unions, or acting upon a complaint. Tariff preferences under the special incentive arrangement for sustainable development and good governance should be temporarily withdrawn if the beneficiary country does not respect its binding undertaking to maintain the ratification and effective implementation of those conventions or to comply with the reporting requirements imposed by the respective conventions, or to maintain the effective implementation of the plan of action provided in its request to benefit from the arrangement or if the beneficiary country does not cooperate with the Union's monitoring procedures as set out in this Regulation. The temporary withdrawal should be used as a last …

Added:Recital 25 a (new): (25a) In determining whether there are systematic and serious violations the Commission should take into account the following non exhaustive list of situations: genocide; crimes against humanity; torture and other cruel, inhuman or degrading treatment or punishment; slavery or forced labour; extrajudicial, summary or arbitrary executions and killings; enforced disappearance of persons; arbitrary arrests or detentions; trafficking in human beings, including people-smuggling; sexual and gender-based violence; other violations of the laws and customs of war; violations or abuses of freedom of peaceful assembly and of association; violations or abuses of freedom of opinion and expression; violations or abuses of freedom of religion or belief; furthermore, the Commission should take into account failure to comply with obligations with regard to nationally determined contributions in the framework of the Paris Agreement on Climate Change

Added:Recital 25 b (new): (25b) Temporary withdrawal of the arrangements should be considered as a last-resort measure. Related decisions can be accompanied by an analysis of the socio-economic impact of the withdrawal with a view to minimising negative effects on the beneficiary country’s populations while maximising the leverage on its government. Whenever the record of compliance with the relevant obligations set out in this Regulation seriously deteriorates, the Commission and the EEAS should step up dialogue with the beneficiary countries and launch a process of enhanced engagement where countries commit to actions through the implementation of targeted roadmaps leading to discernible progress generally in the short term or, whenever issues are more complex and sensitive, over the medium term. After the launch and during the overall duration of the withdrawal procedure, beneficiary countries should be given the possibility to start engaging anytime. If the Commission considers that there is sufficient evidence that a beneficiary country is seriously and systematically violating the principles laid down in the conventions listed in Annex VI, it should immediately initiate the procedure for temporary withdrawal. Where violations are of exceptional gravity, the Commission should activate the rapid response mechanism. Whenever the enhanced engagement is extended into a second year, the Commission should add the country onto a public list, with a view to providing predictability and maximising leverag…

Added:Recital 26 a (new): (26a) A more coordinated, holistic and structured approach to migration could bring important benefits to the countries of origin, transit and destination of migrants. A coordinated approach to migration is key to ensure that the benefits of migration accrue. Comprehensive partnerships should be built to address the root causes of forced migration and achieve the targets and objectives of the UN Sustainable Development Goals. This approach and relevant actions should be implemented in full respect of international law, including international human rights, humanitarian and refugee law, Union and national competences, and should be in line with principles enshrined in the Global Compacts on Refugees and on Safe, Orderly and Regular Migration. The Union should favour a constructive and mutually beneficial engagement on all aspects of migration, including mobility partnerships readmission and reintegration. Improving sustainable reintegration of returning migrants and their families, and monitoring thereof, including through capacity building would significantly strengthen mutually beneficial engagement with partner countries.

Removed:Recital 31: (31) The advisory procedure should be used for the adoption of implementing acts on suspension from the tariff preferences of certain GSP sections in respect of beneficiary countries, on the initiation of a temporary withdrawal procedure, taking into account the nature and impact of those acts and on the establishment of a list of sustainability certification schemes that are relevant for the purpose of recognising products as sustainable.

Added:Recital 36: (36) The Commission should report regularly to the European Parliament and to the Council on the effects of the scheme under this Regulation through the relevant institutional committees. By 1 January 2029, the Commission should report to the European Parliament and to the Council on the mid-term application of this Regulation and assess the need to review the scheme. The report is necessary to analyse the impact of the scheme on the development, poverty eradication, economic diversification, trade and financial needs of beneficiaries, with special regard to be given to the product scope of the Regulation, including in relation to the issue of sustainable products, and to any relevant development concerning conditionalities, as well as on bilateral trade, the impact on EU producers, and on the Union's tariff income, with particular attention to the sustainable development goals.

Removed:Recital 36: (36) The Commission should report regularly to the European Parliament and to the Council on the effects of the scheme under this Regulation through the relevant institutional committees. By 1 January 2030, the Commission should report to the European Parliament and to the Council on the mid-term application of this Regulation and assess the need to review the scheme. The report is necessary to analyse the impact of the scheme on the development, poverty eradication, economic diversification, trade and financial needs of beneficiaries, with special regard to be given to the product scope of the Regulation and to the extension and application of conditionalities, as well as on bilateral trade and on the Union's tariff income, with particular attention to the sustainable development goals and the European Green Deal.

Added:Article 2 – point 9 a (new): (9a) ‘sensitive products’ means goods that due to the level of utilisation rate by standard GSP beneficiary countries could negatively impact the ability and capacity of Union producers to manufacture or process the same goods in the long-run;

Removed:Article 2 – point 9 a (new): (9a) ‘sensitive products’ means goods whose excessively-high utilisation rate by standard GSP beneficiary countries could negatively impact the ability and capacity of Union industries to manufacture or process the same goods in the long-run;

Added:Article 2 – point 10 a (new): (10a) ‘plan of action’ means a forward looking and priority-oriented list of measures, including legislative measures, to be adopted and actions to be taken by a beneficiary country necessary to effectively implement the core international conventions referred to in Annex VI, and based on, inter alia, available information and in particular the most recent conclusions of the monitoring bodies of the conventions; the plan of action shall also provide for a timeframe for each listed measure and action and identify as precisely as possible the relevant institution or structure responsible in the beneficiary country for its implementation and oversight. Each listed measure and action, or set thereof, constitute the benchmarks for the progressive suspension of tariffs, as agreed in the tariff suspension schedule included to the plan of action.

Removed:Article 2 – point 9 b (new): (9b) ‘sustainable products’ means goods whose production, trading, marketing and distribution minimise or have no negative environmental or human rights impacts, are safe for employees, communities, and consumers and are certified by voluntary sustainability standards that are recognised as operationalising the principles of the conventions listed in Annex VI and the UN Guiding Principles on Business and Human Rights;

Removed:Article 2 – point 10 a (new): (10a) ‘plan of action’ means a forward looking and priority-oriented list of measures, including legislative ones, to be adopted and actions to be taken by a beneficiary country which are considered necessary to effectively implement the core international conventions referred to in Annex VI; including a timeframe for each listed measure and action and identifying as precisely as possible the relevant institution or structure responsible for its implementation and oversight;

Changed:Article 2 – point 10 c (new): (10c) ‘list of issues’ means a non-exhaustive list of the salient issues that exist in relationa tobeneficiary attainingcountry effectiveand that affect successful implementation of the international conventions relevant to the GSP+ arrangement, asarrangement identifiedand byof the monitoring bodies or basedplan onof anyaction, accurateas andidentified reliableby sourcesthe ofmonitoring information,bodies, including as provided by relevant stakeholders and civil society organisations, and based on the conclusions outlined in the report referred to in Article 14 and relative to the preceding monitoring cycle;

Removed:Article 2 – point 12: (12) ‘complaint’ means a complaint submitted, also anonymously, to the Commission through the Single Entry Point by citizens, entities, stakeholders or civil society from the Union or the beneficiary countries covered by the schemes referred to in Article 1 paragraph 2 and relating to conditions and reasons referred to in Articles 9 and 19;

Added:Article 2 – point 11 a (new): (11a) ‘‘serious and systematic violation’ means widespread and systematic violations or abuses related to the international conventions of Annex VI, as defined and determined within the framework of those conventions

Added:Article 2 – point 11 b (new): (11b) ‘human rights due diligence obligations’ means the responsibility of business enterprises to respect human rights and to protect against human rights abuse by business. The responsibility of business enterprises to respect human rights refers to internationally recognized human rights – understood, at a minimum, as those expressed in the International Bill of Human Rights and the principles concerning fundamental rights set out in the International Labour Organization’s Declaration on Fundamental Principles and Rights at War;

Added:Article 2 – point 12: (12) ‘complaint’ means a complaint submitted to the Commission through the Single Entry Point by citizens, entities, trade unions, stakeholders or civil society from the Union or the beneficiary countries covered by the schemes referred to in Article 1 paragraph 2 and relating to conditions and reasons referred to in Articles 9 and 19, the confidentiality of which shall be ensured including with regard to the identity of the complainant.

Added:Article 2 – point 12 a (new): (12a) “directly competing products” means a product which, after or prior to an industrial transformation, can be compared to another product.

Changed:Article 4 – paragraph 1 a (new): 1a. Countries that benefit from the standard arrangement referred to in paragraph 1 shall ratify the conventions listed in Annex VI, and adopt a National Action Plan for the implementation of the UN Guiding Principles on Business and Human Rights, in conformity with the Guidance on National Action Plans of the UN Working Group on Business and Human Rights, within five years upon the application of the preferences.

Changed:Article 5 – paragraph 2 – introductory part: 2. With regard to the economic criteria referred to in Article 4 paragraph 1 (a) and (b), by 1 January of each year following the entry into force of this Regulation the Commission shall monitor and review Annex I.I with regard to beneficiary countries that have reached Upper Middle-Income status. To provide a standard GSP beneficiary country and economic operators with time for orderly adaptation to the change of the country's status under the scheme:

Removed:Article 6 – paragraph 1 a (new): 1a. Products shall be considered sustainable when they are certified in accordance with recognised voluntary sustainability certification schemes. A voluntary sustainability certification scheme shall be recognised by the Commission for the purposes of this Regulation based on established sustainability criteria and minimum requirements based, inter alia, on coherence with internationally recognised standards such as the relevant international conventions listed in Annex VI, adequate standards of human rights, environmental sustainability, economic equality and living income; reliability, transparency, traceability, independent and accredited auditing and appropriate appeal procedures shall also feature among the criteria.

Changed:Article 68 – paragraph 2 a-1 (new): 2a.- 1. The Commission shall adopt an implementing act establishing,monitor, in accordancecooperation with the advisorystakeholders procedureand referredcivil tosociety, inthe Articledevelopment 39(2),and aexport listpotential of sustainability certificationbeneficiary schemescountries that are relevant forcould thepotentially purposegraduate ofto recognisingthe productsUpper asMiddle-Income sustainable.Status.

Removed:Article 7 – paragraph 1: 1. Common Customs Tariff duties on products listed in Annex III as non-sensitive products shall be suspended entirely, except for agricultural components unless these products are certified as sustainable products.

Added:Article 8 – paragraph 3: 3. The Commission shall, every three years, review the list referred to in paragraph 2 of this Article and adopt an implementing act, in accordance with the advisory procedure referred to in Article 39(2), in order to suspend or to re-establish the tariff preferences referred to in Article 7. That implementing act shall apply after 6 months following its entry in force.

Removed:Article 7 – paragraph 2: 2. Common Customs Tariff ad valorem duties on products listed in Annex III as sensitive products shall be reduced by 3,5 percentage points, or by 4,5 percentage points if those products are certified as sustainable products. For products under GSP sections S-11a and S-11b of Annex III, that reduction shall be 20 %, or 30% if those products are certified as sustainable products.

Added:Article 9 – point b: (b) it has ratified all the conventions listed in Annex VI (the 'relevant conventions') and the Commission has not identified, based on available information, in particular the most recent available conclusions of the monitoring bodies under those conventions as well as information submitted by civil society organisations and social partners, a serious failure to effectively implement any of those conventions;

Removed:Article 7 – paragraph 4: 4. Common Customs Tariff specific duties, other than minimum or maximum duties, on products listed in Annex III as sensitive products shall be reduced by 30 %, or by 40% if those products are certified as sustainable products.

Added:Article 9 – point d: (d) it gives a binding commitment to maintain ratification of the relevant conventions and to pursue and ensure the effective implementation thereof, accompanied by a time-bound plan of action of steps and measures that are necessary to effectively implement the conventions referred to in Annex VI; the beneficiary country and the Commission shall reach a common understanding on this plan of action, which shall thereafter be made public.

Removed:Article 7 – paragraph 5: 5. Where Common Customs Tariff duties on products listed in Annex III as sensitive products include ad valorem duties and specific duties, the specific duties shall not be reduced, unless those products are certified as sustainable products.

Added:Article 10 – paragraph 1 – point b: (b) the Commission considers, based on examination of the request, including but not limited to the plan of action and whether the country has started implementing it, that the requesting country fulfils the conditions laid down in Article 9.

Removed:Article 9 – point b a (new): (ba) it has adopted a National Action Plan for the implementation of the UN Guiding Principles on Business and Human Rights, in conformity with the Guidance on National Action Plans of the UN Working Group on Business and Human Rights;

Added:Article 10 – paragraph 2: 2. The requesting country shall submit its request to the Commission in writing. The request shall provide comprehensive information concerning the ratification and state of implementation of the relevant conventions and shall include the binding undertakings referred to in Article 9, pointes (d), (e), and (f), including a finalised plan of action.

Removed:Article 9 – point d: (d) it gives a binding undertaking to maintain ratification of the relevant conventions and to ensure the effective implementation thereof, accompanied by a time-bound plan of action of measures that are necessary to effectively implement the relevant conventions; the beneficiary country and the Commission shall reach a common understanding on the plan of action, which shall thereafter be made public;

Added:Article 10 – paragraph 4: 4. While examining the request, the formal views expressed by the European Parliament and the Council, and by civil society and other stakeholders as referred to Article 35a, shall be duly taken into account. After examining the request, the Commission is empowered to adopt delegated acts, in accordance with Article 36, to amend Annex I in order to grant a requesting country the special incentive arrangement for sustainable development and good governance by including that country in the list of GSP+ beneficiary countries.

Removed:Article 10 – paragraph 2: 2. The requesting country shall submit its request to the Commission in writing. The request shall provide comprehensive information concerning the ratification of the relevant conventions and shall include the binding undertakings referred to in Article 9, pointes (d), (e), and (f), including a finalised plan of action.

Removed:Article 10 – paragraph 4: 4. While examining the request, the views expressed by the European Parliament and the Council shall be taken into account and the advisory body referred to in Article 13a shall be consulted. After examining the request, the Commission is empowered to adopt delegated acts, in accordance with Article 36, to amend Annex I in order to grant a requesting country the special incentive arrangement for sustainable development and good governance by including that country in the list of GSP+ beneficiary countries.

Changed:Article 12 – paragraph 2:1: 2.1. The Common Customs Tariff specificad valorem duties on productsall referredproducts tolisted in paragraph 1 shall be suspended entirely,Annex exceptIII forand productsAnnex forVII, which the Common Customs Tariff duties include ad valorem duties, unless those products are sustainable products. Fororiginate productsin witha CombinedGSP+ Nomenclaturebeneficiary codecountry, 1704shall 10be 90,suspended theaccording specificto dutya shalltariff besuspension limitedschedule, toas 16referred %in ofArticle the2.10 customsa value.(new).

Removed:Article 13 – paragraph 1: 1. As of the date of the granting of the tariff preferences provided under the special incentive arrangement for sustainable development and good governance, the Commission shall, with regard to each of the GSP+ beneficiary countries, keep under review and monitor the status of ratification of the relevant conventions and their effective implementation, as well as the cooperation of the GSP+ beneficiary country with the relevant monitoring bodies. In doing so, the Commission shall assess in a transparent manner and based on objective criteria the progress made by the GSP+ beneficiary countries in implementing their plans of action,and examine all relevant information, in particular the conclusions and recommendations of the relevant monitoring bodies, as well as duly substantiated information submitted by individual citizens, private sector actors, civil society organisations, representatives of trade unions, other relevant stakeholders and any complaints received. A cycle of three years for the review, monitoring and assessment (hereinafter monitoring cycle) is hereby established.

Added:Article 12 – paragraph 2: 2. Common Customs Tariff specific duties on products referred to in paragraph 1 shall be suspended according to a tariff suspension schedule, as referred in Article 2.10 a(new), except for products for which the Common Customs Tariff duties include ad valorem duties. For products with Combined Nomenclature code 1704 10 90, the specific duty shall be limited to 16 % of the customs value.

Removed:Article 13 – paragraph 2: 2. A GSP+ beneficiary country shall cooperate with the Commission and provide all information necessary to assess its respect of the binding undertakings referred to in Article 9, points (d) including the implementation of its plan of action, (e), and (f) and its situation as regards Article 9, points (b) and (c).

Added:(

Removed:Article 13 – paragraph 2 a (new): 2a. The Commission, where applicable jointly with the EEAS, shall carry out at least one high-level monitoring mission per monitoring cycle to the beneficiary countries in order to assess progress on the ground, including in line with the plans of action. In the framework of the mission, relevant stakeholders in the beneficiary countries shall be duly consulted. The Commission shall keep the European Parliament and the Council informed of the preparation and outcome of the missions.

Added:Article 13 – paragraph 1: 1. As of the date of the granting of the tariff preferences provided under the special incentive arrangement for sustainable development and good governance, the Commission shall, with regard to each of the GSP+ beneficiary countries, keep under review and monitor the status of ratification of the relevant conventions and their effective implementation, as well as the cooperation of the GSP+ beneficiary country with the relevant monitoring bodies. In doing so, the Commission shall assess in a transparent manner and based on objective criteria the progress made by the GSP+ beneficiary countries in implementing their respective plans of action, and examine all relevant information, in particular the conclusions and recommendations of the relevant monitoring bodies, as well as duly substantiated information submitted by individual citizens, private sector actors, civil society organisations, representatives of trade unions, other relevant stakeholders and any complaints received. The Commission and the EEAS shall hold regular contacts with local and international civil society to assess the beneficiary countries’ implementation commitments. A cycle of three years for the review, monitoring and assessment (hereinafter monitoring cycle) is hereby established.

Changed:Article 13 – paragraph 2 b (new):2: 2b.2. AtA theGSP+ beginningbeneficiary ofcountry eachshall monitoringcooperate cycle,with the Commission shalland sendprovide aall listinformation necessary to assess its respect of issuesthe binding undertakings referred to allin GSP+Article beneficiary9, countriespoints outlining(d) including the implementation issuesof thatits needplan toof beaction, addressed(e), duringand the(f) cycle.and Theits listssituation ofas issuesregards shallArticle be9, madepoints publicly(b) available.and (c)

Removed:Article 13 – paragraph 2 c (new): 2c. The plans of action and the Commission and European External Action Service’s recommendations on priority implementation actions shall be taken into account in the EU development finance programming under the Neighbourhood, Development and International Cooperation Instrument - Global Europe established by Regulation (EU) 2021/947 of the European Parliament and of the Council in order to support GSP+ beneficiary countries in attaining their commitments.

Added:(Amendment 60

Removed:Article 13 a (new): Article 13a / The Commission shall be assisted in reviewing, monitoring and assessing the binding undertakings referred to in Article 9, points (d), (e) and (f) by an advisory body composed of representatives of the Union’s stakeholders. / The Commission shall consult the advisory body with regard to the plans of action submitted by the GSP+ beneficiary countries in view of their application to the GSP+ scheme; for that purpose, the participation to the advisory body shall be extended to stakeholders in the beneficiary countries. The Commission shall also consult with and report to the advisory body when assessing the implementation of the plans of action during each monitoring cycle and more generally throughout the cycle as regularly as necessary, including ahead of and after monitoring missions.

Added:Article 13 – paragraph 2 a (new)

Added:Amendment: 2a. The Commission, where applicable jointly with the EEAS, shall carry out at least one high-level monitoring mission per monitoring cycle to the beneficiary countries in order to assess progress on the ground, in line with, inter alia, the plans of action. In the framework of those missions, the Commission shall consult civil society and other stakeholders referred to in Article 35a in accordance with the procedures and deadlines that the Commission had adopted and published for such consultation. The Commission shall keep the European Parliament and the Council informed of the preparation and outcome of those missions.

Added:(Amendment 61

Added:Article 13 – paragraph 2 b (new)

Added:Amendment: 2b. At the beginning of each monitoring cycle, the Commission shall send a relevant list of issues to each GSP+ beneficiary country outlining implementation issues that need to be addressed during the cycle. The lists of issues shall be made publicly available.

Added:Article 13 – paragraph 2 c (new): 2c. The plans of action and the Commission and European External Action Service’s recommendations on priority implementation actions shall be taken into account in implemeting the Instrument under Regulation (EU) 2021/947, including with a view to provide specific technical assistance, expertise and advice to support GSP+ beneficiary countries in attaining and complying with their international commitments.

Added:Article 13 – paragraph 2 d (new): 2d. At the end of each monitoring cycle, the Commission shall assess which benchmarks have been met by the GSP+ beneficiary country with regard to the effective implementation of the relevant conventions, and take appropriate measures for the suspension of tariff duties, in line with Article 12.

Changed:Article 14 – paragraph 2 – point b: (b) the Commission's and where appropriate the European External Action Service’s conclusions, on whether each GSP+ beneficiary country respects its binding undertakings to comply with reporting obligations, to cooperate with relevant monitoring bodies in accordance with the relevant conventions and to ensure the effective implementation thereof, including through an assessment of the implementation of its plan of action;action. / The report may include any information from any source the Commission considers appropriate including from civil society organisations, business organisations and socialtrade partners.unions. The report shall also pay attention to the economic impact of imports under the GSP+ on EU producers, particularly in cases where products are highly competitive.

Changed:Article 14 – paragraph 3: 3. In drawing their conclusions concerning effective implementation of the relevant conventions, the Commission and where appropriate the European External Action Service shall assess the implementation of the plans of action, also based on the conclusions and recommendations of the relevant monitoring bodies, as well as, without prejudice to other sources, information submitted by the European Parliament or the Council as well as third parties, including governments and international organisations, civil society, and social partners. The Commission and, where applicable, the European External Action Service shall provide recommendations on issues and actions to be prioritised in the following monitoring cycle, including on the provision of technical assistance and development support, as appropriate. In case of major shortcomings in implementing the plans of action, the report shall indicate which measures the country shallare undertakerequired in order to complycontinue withthe implementation of the obligationsconditions underlaid down in Article 9(d).

Changed:Article 15 – paragraph 1: 1. The special incentive arrangement for sustainable development and good governance shall be withdrawn temporarily, in respect of all or of certain products, including certain sectors, originating in a GSP+ beneficiary country, where that country does not respect its binding undertakings as referred to in Article 9, points (d), (e) and (f), including in casethe event of major shortcomings in implementing the plan of action referred to in Article 9 point (d) are identified, with a lack of concrete actions in time and in law, or the GSP+ beneficiary country has formulated a reservation which is prohibited by any of the relevant conventions or which is incompatible with the object and purpose of that convention as established in Article 9, point (c).

Changed:Article 15 – paragraph 3: 3. Where, either on the basis of the conclusions and of the GSP+ beneficiary country’s follow up to recommendations and priority actions as provided by the report referred to in Article 14 or on the basis of the evidence available, including evidence submitted through a complaint, or on the basis of information submitted by the European Parliament, notably in the framework of the dialogue foreseen in Article 35b, or by the Council, the Commission has a reasonable doubt that a particular GSP+ beneficiary country does not respect its binding undertakings as referred to in Article 9, points (d), (e) and (f), including with regard to the implementation of its plan of action, or has formulated a reservation which is prohibited by any of the relevant conventions or which is incompatible with the object and purpose of that convention as established in Article 9, point (c), it shall,shall in accordance with the advisory procedure referred to in Article 39(2), adopt an implementing act to initiate the procedure for the temporary withdrawal of the tariff preferences provided under the special incentive arrangement for sustainable development and good governance. The Commission shall inform the European Parliament and the Council thereof. / In its assessment of whether the GSP+ beneficiary country does not respect its binding undertakings referredadoption toof inthat Articleimplementing 9act pointand (d),of the Commission will in particularfollow-up takeit intohas accountgiven whetherto the relevant monitoringinformation bodies,submitted treatyby andthe supervisoryEuropean mechanismsParliament haveor signalledthe aCouncil. potentially/ seriousIn failureits toassessment effectivelyof implementwhether the relevantGSP+ conventions,beneficiary basedcountry ondoes indicatorsnot suchrespect as:its /binding -undertakings thereferred establishmentto …in Art…

Changed:Article 15 – paragraph 3 a (new): 3a. The Commission shall inform the European Parliament, the Council and the advisorycivil bodysociety and stakeholders as referred to in Articlearticle 13a35a about the complaints received. The Commissionreceived, shalland inform the complainant, the European Parliament,them, theas Councilwell andas the advisory body referred to in Article 13acomplainant, where it considers that the complaint does not provide sufficient evidence in relation to the indicators referred to in this article.

Changed:Article 15 – paragraph 6: 6. The Commission shall seek all information it considers necessary including, inter alia, the conclusions and recommendations of the relevant monitoring bodies and information provided by the European Parliament and the Council, as well as by civil societysociety, business organisations and socialtrade partners.unions. In drawing its conclusions, the Commission shall assess all relevant information.

Changed:Article 15 – paragraph 7 – point a:7: (a) to terminate the temporary withdrawal procedure, either because the grounds for the reasonable doubt are not confirmed in the assessment referred to in paragraph 6, or because the GSP+ beneficiary country has engaged and is committed to address the violations of its binding undertakings as referred to in paragraph 3;

Changed:Article 15 – paragraph 9: 9. Where the Commission considers, based on the outcome of the cooperation and engagement and the findings referred to in paragraphs 5 and 6, and after consulting the European Parliament, the Council and the advisorycivil bodysociety and stakeholders referred to in Article 13a,35a, that a temporary withdrawal is justified for the reasons referred to in paragraph 1 of this Article, it is empowered to adopt delegated acts, in accordance with Article 36, to amend Annex I and Annex II in order to temporarily withdraw the tariff preferences provided under the special incentive arrangement for sustainable development and good governance referred to in Article 1(2), point (b). The Commission shall publicly state the grounds for withdrawing preferences and shall set benchmarks that the beneficiary country should meet for the preferences to be reinstated. In adopting theThe delegated act adopted by the Commission may, when appropriate and especially when considering a partial withdrawal, considerbe accompanied by an analysis on the socio-economic effect of the temporary withdrawal of tariff preferences in the beneficiary country, includingnotably withits regardimpact toon impactshuman rights, on the most vulnerable parts of the population, and on women’s employment and empowerment, with a view to minimising the negative socio-economic impact on the GSP+ beneficiary country’s populations while maximising the leverage on its government.

Changed:Article 15 – paragraph 10 a (new): 10a. During the application of a temporary withdrawal, the Commission shall continue the dialogue with the beneficiary country, including in the framework referred to in Article 18a, aiming at remedying the reasons for the withdrawal referred to in paragraph 3. The Commission shall regularly assess the effects of the withdrawal on remedying the violations, including in the report referred to in Article 14. TheTo that purpose, the Commission shall regularly consult with the advisorysociety bodyand the stakeholders as referred to in Article 13a to that purpose.35a.

Changed:Article 17 – paragraph 1 a (new): 1a. The Commission and, where applicable the EEAS, shall make sure that countries that benefit from the special arrangement referred to in paragraph 1 make continued and sustained progress towards ratifying the conventions listed in Annex VI and towards the adoption of National Action Plans for the implementation of the UN Guiding Principles on Business and Human Rights, in conformity with the Guidance on National Action Plans of the UN Working Group on Business and Human Rights;VI. / EU development finance programmingIn underimplementing the Neighbourhood, Development and International Cooperation Instrument - Global Europe established byunder Regulation (EU) 2021/9472021/947, priority shall prioritisebe given to support to countries benefitting from the special arrangement referred to in paragraph 1 aiming to make progress towards the ratification of the conventions listed in Annex VI and the adoption of the National Action Plans.VI.

Removed:Chapter 5 – Title: Enhanced engagement and temporary withdrawal provisions common to all arrangements

Added:Article 18 a (new): Article 18a / General review of the status of the country in the framework of the preferential arrangements referred to in Article 1(2) shall be conducted yearly within the framework of a cooperation, partnership or association agreement that the Union has concluded with a beneficiary country. For that purpose, the Commission, and where relevant the European External Action Service, and the beneficiary country shall review the issues pertaining to the conditions referred to in Article 19(1), including in relation to any complaints received by the Commission. The Commission, and where relevant the European External Action Service, and the beneficiary country shall also review the status of the ratification of the conventions listed in Annex VI as referred to in Article 4(1a) and progress made towards ratification of the conventions listed in Annex VI as referred to in Article 17(1a). The Commission and the EEAS shall also cooperate with the beneficiary countries with a view to making progress towards the full implementation of the Three Pillars of the UN Guiding Principles on Business and Human Rights.

Removed:Article 18 a new: Article 18a / In the framework of a Cooperation, Partnership or Association Agreement that the Union has concluded with a beneficiary country, a general review of the status of the country in the framework of the preferential arrangements referred to in Article 1(2) shall be conducted yearly. For that purpose, the Commission, and where relevant the European External Action Service, and the beneficiary country shall review the issues pertaining to the conditions referred to in Article 19(1), including in relation to any complaints received by the Commission. The Commission, where relevant the European External Action Service, and the beneficiary country shall also review the status of the ratification of the conventions listed in Annex VI as referred to in Article 4(1a) and progress made towards ratification of the conventions listed in Annex VI as referred to in Article 17(1a).

Added:Chapter V – Title: Enhanced engagement and temporary withdrawal provisions common to all arrangements

Removed:Article 19 – paragraph 1: 1. The preferential arrangements referred to in Article 1(2) may be withdrawn temporarily, in respect of all or of certain products, including certain sectors, originating in a beneficiary country, for any of the following reasons:

Added:Article 19 – paragraph 1: 1. The preferential arrangements referred to in Article 1(2) may be withdrawn temporarily, in respect of all or of certain products, including certain sectors, originating in a beneficiary country, for any of the following reasons: / (aa) failure to abide by the obligation to ratify these conventions, as referred to in Article 4.1 (b); / (c) serious shortcomings in customs controls on the export or transit of drugs (illicit substances or precursors), or serious failure to comply with international conventions on antiterrorism and anto-money laundering; / (d) serious and systematic unfair trading practices including those affecting the supply of raw materials, or as identified in the framework of an investigation concluded under Regulation 2015/1843, which have an adverse effect on the Union industry and which have not been addressed by the beneficiary country. For those unfair trading practices, which are prohibited or actionable under the WTO Agreements, the application of this Article shall be based on a previous determination to that effect by the competent WTO body; / (e) serious and systematic infringement of the objectives adopted by Regional Fishery Organisations or any international arrangements to which the Union is a party concerning the conservation and management of fishery resources, or serious violations of the principles of decent work in fisheries as laid down in ILO Convention No 188 (2007); / The temporary withdrawal of the preferential arrangements referred…

Removed:Article 19 – paragraph 1 – point a: (a) serious and systematic violation of principles laid down in the conventions listed in Annex VI, or failure to abide by the obligation to ratify these conventions, as referred to in Article 4(1) point b;

Added:Article 19 – paragraph 1 – subparagraph 1 a (new): 1a. For the purpose of applying point (a) of paragraph (1), the Commission shall in particular take into account whether the relevant monitoring bodies, treaty and supervisory mechanisms have signalled potentially serious and systematic violations of the principles of the relevant conventions, based on such indicators as: / - the establishment of commissions of inquiry, fact-finding missions, country special rapporteurs, or other monitoring mechanisms by the UN Human Rights Council or General Assembly or the ILO Governing Body; / - findings by the UN High Commissioner for Human Rights, UN Special Procedures or other UN independent human rights experts; / - relevant procedures in the framework of the ILO Committee of Application of Standards, such as the introduction of a special paragraph; / - rulings and opinions by international human rights courts; / - reports by prominent local and international human rights groups; / - relevant indicators for the effective implementation of multilateral environmental and good governance conventions.

Removed:Article 19 – paragraph 1 – point c: (c) serious shortcomings in customs controls on the export or transit of drugs (illicit substances or precursors), or serious failure to comply with international conventions on antiterrorism or anti-money laundering;

Added:Article 19 – paragraph 2 a (new): 2a. The Commission shall publish a notice in the Official Journal of the European Union and notify the beneficiary country, the European Parliament and the Council, if the violations of principles of the international conventions listed in Annex VI so require, based on available assessments, comments, decisions, recommendations and the conclusions of the relevant monitoring bodies, or based on substantiated concerns expressed by the European Parliament, the Council, international organisations, and civil society including trade unions, or acting upon a complaint. / Starting from the date of the notification and for the duration of one year, the beneficiary country and the Commission shall enter into an enhanced engagement, whereby the beneficiary country commits to adopt time-bound roadmaps providing for concrete actions and sustainable solutions to the serious violations identified. / In the cases where the violations have reached the stage of serious and systematic violations, the Commission shall immediately initiate the procedure for the temporary withdrawal, as referred to in Article 19.4. / The Commission shall regularly consult with the European Parliament and the Council during the enhanced engagement process and consult with the civil society and stakeholders as referred to in Article 35a. / In implementing the Instrument under Regulation (EU) 2021/947, support shall be provided to beneficiary countries in implementing the roadmaps.

Removed:Article 19 – paragraph 1 – point d: (d) serious and systematic unfair trading practices as established by WTO appeal mechanisms;

Removed:Article 19 – paragraph 1 – point e: (e) serious and systematic infringement of the objectives adopted by Regional Fishery Organisations or any international arrangements to which the Union is a party concerning the conservation and management of fishery resources, or serious violations of the principles of decent work in fisheries as laid down in ILO Convention No 188 (2007);

Removed:Article 19 – paragraph 1 – subparagraph 1 a (new): For the purpose of applying point (a), the Commission will in particular take into account whether the relevant monitoring bodies, treaty and supervisory mechanisms have signalled potentially serious and systematic violations of the principles of the relevant conventions, based on such indicators as: / - the establishment of commissions of inquiry, fact-finding missions, country special rapporteurs, or other monitoring mechanisms by the UN Human Rights Council or General Assembly; / - findings by the UN High Commissioner for Human Rights, UN Special Procedures or other UN independent human rights experts; / - relevant procedures in the framework of the ILO Committee of Application of Standards, such as the introduction of a special paragraph; / - rulings and opinions by international human rights courts; / - reports by prominent local and international human rights groups; / - relevant indicators for the effective implementation of Multilateral Environmental and good governance Conventions.

Removed:Article 19 – paragraph 2 a (new): 2a. The Commission shall notify the beneficiary country when in particular the seriousness of the violations of principles of the international conventions listed in Annex VI so requires, based on available assessments, comments, decisions, recommendations and the conclusions of the relevant monitoring bodies, or based on substantiated concerns expressed by the European Parliament, the Council, international organisations, and civil society including trade unions, or acting upon a complaint. / Starting from the date of the notification and for the duration of one year, the beneficiary country and the Commission shall enter into an enhanced engagement, whereby the beneficiary country commits to adopt time-bound roadmaps providing for concrete actions and sustainable solutions to the serious violations identified. EU development finance programming under the Neighbourhood, Development and International Cooperation Instrument - Global Europe established by Regulation (EU) 2021/947 of the European Parliament and of the Council shall support beneficiary countries in implementing the roadmaps. / The Commission shall regularly consult with the European Parliament and the Council during the enhanced engagement process. The Commission shall also consult with the advisory body referred to in Article 13a.

Changed:Article 19 – paragraph 3: 3. Where the Commission,Commission acting upon a complaintcomplaint, on the basis of information submitted by the European Parliament, notably in the framework of the dialogue foreseen in Article 35b, or by the Council, or on its own initiativeinitiative, considers that there are sufficient grounds justifying temporary withdrawal of the tariff preferences provided under any preferential arrangement referred to in Article 1(2) because the beneficiary country has failed to deliver on its roadmap referred to Article 19(2a), or more generally on the enhanced engagement, or on the basis of other reasons referred to in paragraph 1 of this ArticleArticle, it shall adopt an implementing act to initiate the procedure for temporary withdrawal in accordance with the advisory procedure referred to in Article 39(2). The Commission shall inform the European Parliament and the Council of the adoption of that implementing act.act and of the follow-up it has given to the information submitted by the European Parliament or the Council.

Changed:Article 19 – paragraph 3 a (new): 3a. The Commission shall inform the European Parliament, the Council and the advisorycivil bodysociety and stakeholders as referred to in Article 13a35a about the complaints received. The Commissionreceived, shalland inform the complainant, the European Parliament,them, theas Councilwell andas the advisory body referred to in Article 13acomplainant, where it considers that the complaint does not provide sufficient evidence in relation to the indicators referred to in this article.Article.

Changed:Article 19 – paragraph 44: –4. pointThe b:Commission shall publish a notice in the Official Journal of the European Union announcing the initiation of a temporary withdrawal procedure, and shall notify the beneficiary country concerned thereof, and inform the European Parliament and the Council. The notice shall: / (b) state that the Commission will continue to pursue dialogue in the framework of the enhanced engagement and monitor and evaluate the situation in the beneficiary country concerned during the monitoring and evaluation period referred to in Paragraph 5.

Changed:Article 19 – paragraph 5: 5. The Commission shall providecarry theout beneficiarymonitoring countryand concernedevaluation withduring everya opportunityperiod of six months from the publication of the notice referred to startin engagingparagraph and4. cooperateThe anyCommission timeshall duringprovide the monitoringbeneficiary andcountry evaluationconcerned periodwith ofevery sixopportunity monthsto fromstart theengaging dateand ofcooperate publicationany oftime theduring notice.that period.

Changed:Article 19 – paragraph 6: 6. The Commission shall seek all information it considers necessary, inter alia, the available assessments, comments, decisions, recommendations and conclusions of the relevant monitoring bodies, and relevant information from other sources, including from civil society organisations, business organisations and socialtrade partnersunions, and evidence submitted through a complaint or provided by third parties, as appropriate, as well as information provided by the European Parliament and the Council. / In drawing its conclusions, the Commission shall assess all relevant information and consider the progress made by the beneficiary country in delivering on its roadmap in the framework of the enhanced engagement referred to in paragraphArticle 2a.19.2a.

Changed:Article 19 – paragraph 7: 7. Within one month from the expiry of the period referred to in paragraph 5, and after consultation ofconsulting the advisorycivil bodysociety and stakeholders as referred to in Article 13a,35a, the Commission shall submit a report on its findings and conclusions to the beneficiary country concerned. The Commission shall present the report to the European Parliament and to the Council. The beneficiary country has the right to submit its comments on the report. The period for comments shall not exceed one month.

Changed:Article 19 – paragraph 10: 10. Where the Commission considers, based on the elements referred to in paragraph 6 and 7, that temporary withdrawal for the reasons referred to in paragraph 1 is justified of this Article,Article is justified, it is empowered to adopt delegated acts, in accordance with Article 36, to amend Annex I and Annex II, in order to temporarily withdraw the tariff preferences provided under the preferential arrangements referred to in Article 1(2). The Commission shall publicly state the grounds for withdrawing preferences and set benchmarks that the beneficiary country should meet for the preferences to be reinstated. In adopting theThe delegated act adopted by the Commission may, where appropriate and especially when considering a partial withdrawal, considerbe accompanied by an analysis on the socio-economic effect of the temporary withdrawal of tariff preferences in the beneficiary country, includingnotably withits regardimpacts toon impactshuman rights, on the most vulnerable parts of the population, and on women’s employment and empowerment, with a view to minimising the negative socio-economic impact on the beneficiary country’s populations while maximising the leverage on its government.

Changed:Article 19 – paragraph 12 a (new): 12a. During the application of a temporary withdrawal, the Commission shall continue the dialogue with the beneficiary country, including in the framework referred to in Article 18a, aiming at remedying the reasons for the withdrawal referred to in paragraph 1. The Commission shall regularly assess the effects of the withdrawal on remedying the violations, and to that purpose shall consult with the advisorycivil bodysociety and the stakeholders referred to in Article 13a to that purpose.35a.

Changed:Article 19 – paragraph 16: 16. Where the Commission considers that there is sufficient evidence to justify temporary withdrawal for the reason set out in paragraph 1, point (a) and the exceptional gravity of the violations calls for a rapid response in view of the specific circumstances in the beneficiary country, it shall initiate the procedure for temporary withdrawal in accordance with paragraphs (3) to (15). However, the period referred to in paragraph 4, point (b)5 is reduced to 21 months, the deadline referred to in paragraph 8 shall beis reduced to a period up to 5 months as3 appropriate.months.

Added:Article 24 – paragraph 2: 2. An investigation shall be initiated upon request by a Member State, by the European Parliament, by any legal person or any association not having legal personality, acting on behalf of Union producers, or on the Commission's own initiative if it is apparent to the Commission that there is sufficient prima facie evidence, as determined on the basis of factors referred to in Article 23, to justify such initiation. The request to initiate an investigation shall contain evidence that the conditions for imposing the safeguard measure set out in Article 22(1) are met. The request shall be submitted to the Commission. The Commission shall, as far as possible, examine the accuracy and adequacy of the evidence provided in the request, to determine whether there is sufficient prima facie evidence to justify the initiation of an investigation.

Added:Article 24 – paragraph 4: 4. An investigation, including the procedural steps referred to in Articles 25, 26 and 27, shall be concluded within 9 months from its initiation.

Added:Article 24 – paragraph 4 a (new): 4a. The Commission shall adopt public guidelines providing all the relevant information to support Union producers in requesting an initiation of a safeguard investigation, including with regard to the kind of information that is to be provided with a view to determining the existence of serious difficulties to Union producers, or a threat thereof, as referred to Article 22 paragraph 1 and Article 23.

Added:Article 24 – paragraph 4 b (new): 4b. The Commission shall make available standard questionnaires and forms in all EU official languages that Union producers may submit to the Commission in order to provide evidence that serious difficulties or threat thereof exist.

Added:Article 24 – paragraph 4 c (new): 4c. With a view to accessing the relevant information and documents in a less costly and more time-saving manner the SME Trade Defence Helpdesk established under Regulation (EU) 2016/1036 shall be made available for safeguard investigations under this Regulation.

Added:Article 26: Where the facts as finally established show that the conditions set out in Article 22(1) are met, the Commission shall adopt an implementing act to reintroduce the Common Customs Tariff duties in accordance with the advisory procedure referred to in Article 39(2). That implementing act shall enter into force within one month from the date of its publication in the Official Journal of the European Union.

Added:Article 27: Where the facts as finally established show that the conditions set out in Article 22(1) are not met, the Commission shall adopt an implementing act terminating the investigation in accordance with the advisory procedure referred to in Article 39(2). That implementing act shall be published in the Official Journal of the European Union. If no implementing act is published within the period referred to in Article 24(4), the investigation shall be deemed terminated and any implementing acts adopted pursuant to Article 25 shall automatically expire. Any Common Customs Tariff duties collected as a result of those implementing acts shall be refunded.

Added:Article 28: Common Customs Tariff duties shall be wholly or partially reintroduced for as long as necessary to counteract the deterioration in the economic or financial situation of Union producers, or for as long as the threat of such deterioration persists. The period of reintroduction shall not exceed four years, unless it is extended in duly justified circumstances. / Whenever there is sufficient prima facie evidence that the lifting of the general safeguard measures would likely result in a continuation or recurrence of serious difficulties for EU producers, the Commission shall consider such a review justified for the purpose of further extending the measures.

Added:Article 29 – paragraph 1 – introductory part: 1. Without prejudice to Section I of this Chapter, on 1 January of each year, the Commission, on its own initiative and in accordance with the advisory procedure referred to in Article 39(2), shall adopt an implementing act in order to remove the tariff preferences referred to in Articles7, 12 and 18 with respect to the products falling under Combined Nomenclature codes 100610, 100620, 100630 where imports of such products, originate in a beneficiary country and their total value / (a) exceeds the share referred to in point 3a of Annex IV of the value of Union imports of the same products from all countries and territories listed in Annex I, columns C, during a calendar year / deleted / 2. Paragraph 1 shall not apply to countries with a share for the relevant products referred to in paragraph 1 not exceeding 6 % of total Union imports of the same products.

Added:Article 29 a (new): Article 29a / 1. Without prejudice to Section I of this Chapter, on 1 January of each year, the Commission, on its own initiative and in accordance with the advisory procedure referred to in Article 39(2), shall adopt an implementing act in order to remove the tariff preferences referred to in Articles 7 and 12 with respect to the products from GSP sections S-11a, S-11b or to products falling under Combined Nomenclature code 1701 where imports of such products, originate in a beneficiary country and their total value: / (a) for products under GSP sections S-11a and S-11b exceeds the share referred to in point 3 of Annex IV of the value of Union imports of products in GSP sections S-11a and S-11b from all countries and territories listed in Annex I, columns C, during a calendar year. / (b) for products falling under Combined Nomenclature code 1701 the share referred to in point 3a of Annex IV of the value of Union imports of the same products from all countries and territories listed in Annex I, column C, during a calendar year / 2. Paragraph 1 shall not apply to EBA beneficiary countries, nor shall it apply to countries with a share for the relevant products referred to in paragraph 1 not exceeding 6 % of total Union imports of the same products. / 3. The removal of the tariff preferences shall become applicable two months after the date of publication of the Commission's act to that effect in the Official Journal of the European Union.

Added:Article 30 – paragraph 1: Without prejudice to Section I of this Chapter, where imports of products listed in Annex I to the TFEU, such as rice and sugar, cause, or threaten to cause, serious disturbance to Union markets, in particular to one or more of the outermost regions, or those markets' regulatory mechanisms, the Commission, on its own initiative or at the request of a Member State, after consulting the committee for the relevant agriculture or fisheries common market organisation, shall adopt an implementing act in order to suspend the preferential arrangements in respect of the products concerned in accordance with the advisory procedure referred to in Article 39(2).

Added:Article 32 – paragraph 2: (b) when the evidence provided by Union producers allows the Commission to determine that Imports of products from Chapters 1 to 24 of the Common Customs Tariff as laid down by Regulation (EEC) No 2658/87, under the preferential arrangements granted under this Regulation massively exceed the usual levels of exports from the beneficiary country concerned. The Commission shall clarify which criteria shall be satisfied in order to meet the requirement of “massively exceeding levels”.

Changed:Article 33 a (new): Article 33a / Pursuant to the EU Aid for Trade Strategy and development funding instruments, it is essentialshall tobe ensureensured that EU development finance programming under the Neighbourhood, Development and International Cooperation Instrument - Global Europe established byunder Regulation (EU) 2021/947 of the European Parliament and of the Council,, including blended finance and guarantees, shall supportsupports the beneficiary countries in fully utilising the preferences granted by this Regulation, promoting their production capacity, economic and export diversification, notably with regards to sustainable products, value addition and inclusive sustainability.

Removed:Article 40: By 1 January 2027 and every three years thereafter, the Commission shall submit to the European Parliament and to the Council a report on the effects of the scheme and the progress made against the objectives and the conditionalities of this Regulation covering the most recent three-year period and all of the preferential arrangements referred to in Article 1(2). / By 1 January 2030, the Commission shall submit, to the European Parliament and to the Council, a report on the application of this Regulation. Such a report shall contain in particular the assessment of the appropriateness of the product scope of the Regulation against the objectives of development, poverty eradication and economic diversification and in relation to the broader objectives and implementation of the European Green Deal, in line with the evolution of the Union’s normative environment. The report shall also assess the extension of conditionalities and application thereof to international conventions in the area of climate and environmental protection and good governance. The report shall, where appropriate, be accompanied by a legislative proposal.

Added:Article 35 a (new): Article 35a / The Commission shall hold a regular dialogue with representatives of the civil society and stakeholders in order to review, monitor and assess the implementation of this Regulation, including with regard to the binding undertakings referred to in Article 9, points (d), (e) and (f) and the plans of action submitted in the framework of applications to the GSP+ Scheme. Whenever relevant, the Commission shall adopt public procedures and deadlines for the consultation of civil society and stakeholders.

Removed:Annex 6 – point 1 a (new): 1a. Rome Statute of the International Criminal Court (1998)

Added:Article 35 b (new): Article 35b / In order to enhance the dialogue between the institutions of the Union, in particular the European Parliament, the Council and the Commission, and to ensure greater transparency and accountability, the European Parliament may invite the Commission and, where appropriate, the Council, to appear before the competent committee to discuss in particular the list of issues referred to in article 13 (2b), the application of this Regulation and the need for a temporary withdrawal of preferential arrangements under Article 15 and Article 19.

Removed:Annex 6 – point 3 a (new): 3a. First Optional Protocol to the International Covenant on Civil and Political Rights (1966)

Added:Article 40: By 1 January 2027 and every three years thereafter, the Commission shall submit to the European Parliament and to the Council a report on the effects of the scheme and the progress made against achieving the objectives and the conditionalities of this Regulation covering the most recent three-year period and all of the preferential arrangements referred to in Article 1(2). The report shall contain the description of the impact and the use of trade preferences, and it shall focus on development and export potential of the most competitive GSP beneficiary countries, in particular those Standard GSP countries that are closer to graduating to Upper-Middle Income status, including with regards to impact on EU industry regarding competitive products. / By 1 January 2029, the Commission shall submit, to the European Parliament and to the Council, a report on the application of this Regulation. Such a report shall in particular: /  assess the appropriateness of the product scope against the objectives of development, poverty eradication and economic diversification and in relation to the broader objectives and implementation of the European Green Deal, in line with the evolution of the Union’s normative environment, as well as the opportunity to introduce arrangements in order to facilitate trade in sustainable products as established in relevant EU legislation with the beneficiary countries. /  assess the implication of the amendments to the ILO’s Declaration on Fundamental princi…

Removed:Annex 6 – point 19 a (new): 19a. Protocol of 2014 to the Forced Labour Convention of 1930

Added:Annex IV: Modalities for the application of Article 8, Article 29 and Article 29a / 2. Article 8 shall apply for each of the GSP sections S-2a, S-3 and S-5 of Annex III, when the percentage share referred to in paragraph 1 of that Article exceeds 17,5 % / 3. Article 8 and 29a shall apply for each of the GSP sections S-11a and S-11b of Annex III, when the percentage share referred to in paragraph 1 of that Article exceeds 37 %. / 3a. Article 29 and 29a shall apply for products falling under Combined Nomenclature codes 100610, 100620, 100630, and 1701 when the percentage share referred to in paragraph 1 of those Articles exceeds 10 %.

Removed:Annex 6 – point 19 b (new): 19b. Occupational Safety and health Convention No 155 (1981).

Added:Annex VI new: 1a. Rome Statute of the International Criminal Court (1998) / 3a. First Optional Protocol to the International Covenant on Civil and Political Rights (1966) / 3b. Second Optional Protocol to the International Covenant on Civil and Political Rights, aiming at the abolition of the death penalty (1989)

Removed:Annex 6 – paragraph 19 c (new): 19c. Promotional Framework for Occupational Safety and Health Convention No187 (2006).

Added:SHORT JUSTIFICATION

Added:The European Union (EU) has granted trade preferences to developing countries through the Generalised Scheme of Preferences (GSP) since 1971, as part of its common commercial policy and in accordance with the general provisions governing the EU's external action. The GSP assists developing countries with integrating in the world economy, reducing poverty, and supporting sustainable development through the promotion of core human and labour rights, environmental protection, and good governance.

Added:The GSP consists of three arrangements:

Added:• Standard GSP: for low and lower-middle income countries, providing for a reduction or full removal of customs duties on two thirds of EU tariff lines.

Added:• GSP+: the special incentive arrangement for sustainable development and good governance, which reduces tariffs to 0% for broadly the same tariff lines as Standard GSP. It is granted to vulnerable low and lower-middle income countries that implement 27 international conventions related to human rights, labour rights, protection of the environment and good governance.

Added:• EBA (Everything But Arms): the special arrangement for least developed countries (LDCs), providing them with duty-free, quota-free access to the EU market for all products except arms and ammunition.

Added:The current scheme will apply until 31 December 2023.

Added:The Commission’s mid-term evaluation and the supporting expert study concluded that the current framework has been largely effective and delivering on its objectives. The GSP has had a positive economic impact - the imports to the EU from the beneficiary countries have increased. However, the GSP does not achieve its full potential when it comes to improving living standards, environmental standards or incentivising the beneficiary countries to improve the respect for human rights and other core rights and obligations related to sustainable development.

Added:The Commission published the proposal for a new regulation for the period 2024 -2034 on 22 September 2021. The proposal retains broadly the features of the current GSP regulation. It strengthens the current GSP in aspects that are of particular relevance for AFET, such as extending the list of conventions that need to be complied with additional human rights and good governance instruments, introduces improvements in the monitoring of compliance with GSP+ requirements and boosts involvement of civil society in the implementation of the GSP. It further introduces a new urgent withdrawal procedure in cases of grave violations of international human rights standards.

Added:However, there are areas where the AFET rapporteur would like to further strengthen the proposal and make it more effective, including:

Added:- an ex-ante human rights impact assessment before the granting of standard GSP and GSP+ in order to identify risks of human rights violations and abuses by sector in the country.

Added:- Extending positive conditionality to standard GSP.

Added:- Reinforcing the Annex VI on core conventions.

Added:- Reinforcing transparency and effectiveness of the monitoring process and strengthening the involvement of both international and domestic civil society.

Added:- Promoting, through this instrument, the UN Guiding Principles on Business and Human rights and OECD Due Diligence Guidance for Responsible Business Conduct and the compliance of beneficiary countries’ legislation with the EU due diligence toolbox, in particular with the EU regulation no 2368/2002 of 20 December 2002 implementing the Kimberley Process certification scheme for the international trade in rough diamonds, the EU regulation 2017/821 of 17 May 2017 laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas as well as the regulation 995/2010 of the European Parliament and of the Council of 20 October 2010 laying down the obligations of operators who place timber and timber products on the market.

Added:- Reinforcing complaints mechanism by formalising the Single Entry Point in the proposal and making it open to Human Rights Defenders and civil society organisations.

Added:- Clarifying the possibility of sectoral withdrawal of preferences in function of occurrence of serious and systematic human rights violations in a particular sector.

Added:AMENDMENTS

Added:The Committee on Foreign Affairs calls on the Committee on International Trade, as the committee responsible, to take into account the following amendments:

Added:Recital 8 a (new): (8 a) Before granting any preferential regime to a country, the Commission should conduct and publish an ex-ante human rights and environmental impact assessment in order to identify, assess, and indicate measures to prevent, mitigate, address and combat any risk of human rights or environmental violations.

Added:Recital 9: (9) The standard GSP arrangement should be granted to all those developing countries which share a common development need and are in a similar stage of economic development and have signed and have committed to ratifying the core international conventions mentioned in Annex VI within five years upon the application of the arrangement. There is no definition of ‘developing country’ at the level of the WTO, and it is left to preference granting countries to determine the list of GSP-eligible developing countries. Countries which have successfully completed their transition from centralised to market economies, and are today powerful economies with a strong position in international trade, such as China, Hong Kong, Macao and Russia, should not be considered as developing countries in the context of the GSP, and should, therefore, be removed from the list of eligible countries. Countries which are classified by the World Bank as high-income or upper-middle income countries have per capita income levels allowing them to attain higher levels of diversification without the scheme's tariff preferences. They are at a different stage of economic development and do not, therefore, share the same development, trade and financial needs as lower income or more vulnerable developing countries. In order to prevent unjustified discrimination, they need to be treated differently; therefore, they do not benefit from the standard GSP arrangement. Furthermore, the use of tariff preferences provi…

Added:Recital 11: (11) The special incentive arrangement for sustainable development and good governance (GSP+) is based on the integral concept of sustainable development, as recognised by international conventions and instruments such as the 1986 UN Declaration on the Right to Development, the 1992 Rio Declaration on Environment and Development, the 1998 International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work, the 2000 UN Millennium Declaration, the 2002 Johannesburg Declaration on Sustainable Development, the ILO Centenary Declaration for the Future of Work of 2019, the Outcome Document of the UN Summit on Sustainable Development of 2015 "Transforming Our World: the 2030 Agenda for Sustainable Development", the UN Guiding Principles on Business and Human Rights, and the Paris Agreement on Climate Change under the UN Framework Convention on Climate Change. Consequently, the additional tariff preferences provided for under the special incentive arrangement for sustainable development and good governance should be granted to those developing countries which, due to a lack of diversification, are economically vulnerable, have ratified and started implementing core international conventions on human and labour rights, climate and environmental protection and good governance, and commit to pursuing the effective implementation thereof, including but not limited to a public, ambitious and time-bound plan of action, adopted in accordance with this Regulation…

Added:Recital 16: (16) The Commission and where appropriate the European External Action Service should monitor the status of ratification of the international conventions on human and labour rights, environmental protection and good governance and their effective implementation, by examining the relevant information, in particular where available the conclusions and recommendations of the relevant monitoring bodies established under those conventions. Every two years, the Commission should present to the European Parliament and the Council a report on the status of ratification of the respective conventions, the compliance of the beneficiary countries with any reporting obligations under those conventions, and the status of the implementation of the conventions in practice.

Added:Recital 16 a (new): (16a) The Commission should, for reasons of consistency of Union policies, encourage beneficiary countries to adhere to higher social and environmental standards and to promote a strong sustainable development dimension in global value chains, in line with the due diligence obligations set out in the United Nations Guiding Principles on Business and Human Rights.

Added:The GSP regulation needs to be coherent with the EU’s human rights and environmental due diligence tools as recalled in the European Parliament resolution of 5 July 2016 on implementation of the 2010 recommendations on social and environmental standards, human rights and corporate responsibility (2015/2038(INI).

Added:Recital 18: (18) In July 2020, the Commission appointed the Chief Trade Enforcement Officer with the role of enforcing trade rules. In this connection, in November 2020, the Commission launched a new complaints mechanism, the Single Entry Point (‘SEP’), as part of its increased efforts to strengthen the enforcement and implementation of trade commitments. Through the SEP, the Commission receives complaints on various matters related to trade policy, including breaches of the GSP commitments. Such new system of complaints should be integrated within the framework of this Regulation and should be accessible to civil society organisations and human rights defenders, both from the Union and the beneficiary countries.

Added:Recital 26: (26) Orderly international migration can bring important benefits to the countries of origin and destination of migrants and contribute to their sustainable development needs. Increasing coherence between trade, development and migration policies is key to ensure that the benefits of migration accrue mutually to both the origin and destination countries. In this respect, it is essential for both origin and destination countries to address common challenges, such as, stepping up cooperation on readmission of own nationals and their sustainable reintegration in the country of origin, in particular in order to avoid a constant drain in active population in the countries of origin, with the ensuing long-term consequences on development, and to ensure that migrants are treated with dignity and that their human rights are fully respected.

Added:Recital 27: deleted

Added:Article 2 – paragraph 1 – point 11 a (new): (11 a) ‘serious and systematic violation’ means widespread and systematic human rights violations or abuses that are of serious concern, as regards the objectives of the common foreign and security policy set out in Article 21 TEU, which includes but is not limited to the following: / i. genocide; / ii. crimes against humanity; / iii. torture and other cruel, inhuman or degrading treatment or punishment; / iv. slavery or forced labour; / v. extrajudicial, summary or arbitrary executions and killings; / vi. enforced disappearance of persons; / vii. arbitrary arrests or detentions; / viii. trafficking in human beings, including people-smuggling; / ix. sexual and gender-based violence; / x. other violations of the laws and customs of war; / xi. violations or abuses of freedom of peaceful assembly and of association; / xii. violations or abuses of freedom of opinion and expression; / xiii. violations or abuses of freedom of religion or belief; / Indicators to determine whether such serious and systematic violations have occurred should be clear and include, amongst others: / (i) rulings and opinions by international human rights courts, courts, arbitration panels and tribunals or other judicial authorities and mechanisms; / (ii) establishment and findings of commissions of inquiry, fact-finding missions, special rapporteurs, or other monitoring mechanisms by the UN Human Rights Council or General Assembly or by other regional intergovernmental bodies; / (iii) findings by the Offi…

Added:Article 2 – paragraph 1 – point 11 b (new): (11 b) ‘human rights due diligence obligations’ refers to the responsibility of business enterprises to respect human rights and to protect against human rights abuse by business as set in the UN Guiding Principles on Business and Human Rights (UNGPs) in 2011. The responsibility of business enterprises to respect human rights refers to internationally recognized human rights – understood, at a minimum, as those expressed in the International Bill of Human Rights and the principles concerning fundamental rights set out in the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work.

Added:Article 2 – paragraph 1 – point 11 c (new): (11 c) ‘civil society organisation’ means a wide range of actors with multiple roles and mandates, which may vary over time and across institutions and countries, and includes all non-State, not-for-profit independent and non-violent structures, through which people organise the pursuit of shared objectives and ideals, including political, cultural, religious, environmental, social or economic, and which operate at local, national, regional or international levels, and which comprise urban and rural, indigenous, formal and informal organisations;

Added:Article 3 a (new): Article 3 a / Human rights and environmental impact assessmentBefore granting any preferential regime to a country, the Commission should conduct and publish an ex-ante human rights and environmental impact assessment in order to identify, assess, and indicate measures to prevent, mitigate, address and combat any risk of human rights or environmental violations.

Added:Article 4 – paragraph 1 – point b a (new): (b a) the results of an ex ante human rights and environmental impact assessment carried out by the Commission pursuant to article 3 paragraph a (new) show a considerable risk of negative impact on human rights or on the environment in the beneficiary country, and proposed measures to prevent, address and combat it are insufficient or have not been accepted by the beneficiary country’s government;

Added:Article 4 – paragraph 1 – point b a (new): (b a) there is sufficient ground to consider that serious and systematic shortcomings and violations of the conditions set out in Article 19.1 points (a), (b), (c), (d) and (e) exist;

Added:Article 4 – paragraph 1 – point b c (new): (b c) it has not signed nor ratified the conventions listed in Annex VI within five years upon the application of the preferences;

Added:Article 4 – paragraph 1 – point b d (new): (b d) it has adopted domestic legislative and administrative measures that manifestly aim to undermine the effective implementation of the due diligence requirements under Union law, and in particular Regulation (EU) 2017/821 of the European Parliament and of the Council1a, Regulation (EU) 995/2010 of the European Parliament and of the Council1b and Council Regulation (EC) 2368/20021c; / 1a Regulation (EU) 2017/821 of the European Parliament and of the Council of 17 May 2017 laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas (OJ L 130, 19.5.2017, p. 1). / 1b Regulation (EU) 995/2010 of the European Parliament and of the Council of 20 October 2010 laying down the obligations of operators who place timber and timber products on the market (OJ L 295, 12.11.2010, p.23). / 1c Council Regulation (EC) No 2368/2002 of 20 December 2002 implementing the Kimberley Process certification scheme for the international trade in rough diamonds (OJ L 358, 31.12.2002, p. 28).

Added:Article 4 – paragraph 1 a (new): 1 a. The Commission and, where applicable, the European External Action Service, shall make sure that countries that benefit from the standard arrangement referred to in paragraph 1 of this Article have ratified the conventions listed in Annex VI within the five years upon the application of the preferences;

Added:Article 4 – paragraph 1 b (new): 1 b. The Commission shall encourage beneficiary countries to adopt measures in line with the United Nations Guiding Principles on Business and Human Rights, such as the adoption of National Action Plans and in line with their commitment ensure the ratification of the conventions listed in Annex VI. It shall be possible to finance assistance programs under the Neighbourhood, Development and International Cooperation Instrument – Global Europe, established by Regulation (EU) 2021/947 of the European Parliament and of the Council.

Added:Article 9 – paragraph 1 – point b: (b) it has ratified and started to implement all the conventions listed in Annex VI (the 'relevant conventions') and the Commission has not identified, based on available information, in particular the most recent available conclusions of the monitoring bodies under those conventions as well as information submitted by the Advisory Body or the civil society organisations, a serious failure to effectively implement any of those conventions;

Added:Article 9 – paragraph 1 – point d: (d) it gives a binding undertaking to ratify and ensure effective implementation of the relevant conventions by an ambitious and public time-bound plan of action of measures that are necessary to effectively implement the relevant conventions, setting out a roadmap with clear benchmarks and deadlines, and that shall be approved by the Commission in consultation with the European Parliament. The beneficiary country and the Commission should reach a common understanding on the plan of action, which shall thereafter be made public. The plan of action shall serve as a basis for the report referred to in Article 14;

Added:Article 9 – paragraph 1 – point d a (new): (d a) it has not adopted domestic legislative and administrative measures that manifestly aim to undermine the effective implementation of the due diligence requirements under Union law, and in particular Regulations (EU) 2017/821, (EU) 995/2010 and (EC) 2368/2002 and has adopted a National Action Plan for the implementation on Business and Human Rights, in conformity with the Guidance on National Action Plans of the UN Working Group on Business and Human Rights;

Added:Article 9 – paragraph 1 – point f a (new): (f a) the results of an ex ante human rights and environmental impact assessment carried out by the Commission pursuant to article 3 paragraph a (new) do not show a considerable risk of negative impact on human rights or on the environment in the beneficiary country, or proposed measures to prevent and address it are sufficient and have been accepted by the beneficiary country’s government;

Added:Article 10 – paragraph 1 – point b: (b) the Commission considers, based on examination of the request, including but not limited to the plan of action as indicated in article 9 paragraph 1 (d), as well as on the results of the human rights impact assessment referred to in Article 3, paragraph a (new), that the requesting country fulfils the conditions laid down in Article 9.

Added:Article 10 – paragraph 2: 2. The requesting country shall submit its request to the Commission in writing. The request shall provide comprehensive information concerning the ratification and implementation of the relevant conventions and shall include the binding undertakings referred to in Article 9, points (d), (e), and (f), including a finalised plan of action.

Added:Article 10 – paragraph 4: 4. While examining the request, the European Commission shall consult the European Parliament and the Council and the advisory body referred to in Article 13a (new). After examining the request, the Commission is empowered to adopt delegated acts, in accordance with Article 36, to amend Annex I in order to grant a requesting country the special incentive arrangement for sustainable development and good governance by including that country in the list of GSP+ beneficiary countries.

Added:Article 12 – paragraph 1: 1. The Common Customs Tariff ad valorem duties on all products listed in Annex III and Annex VII, which originate in a GSP+ beneficiary country, shall be suspended according to the tariff suspension schedule referred to in Article 9(2).

Added:Article 13 – paragraph 1: 1. As of the date of the granting of the tariff preferences provided under the special incentive arrangement for sustainable development and good governance, the Commission shall, with regard to each of the GSP+ beneficiary countries, keep under review and monitor the status of ratification of the relevant conventions and their effective implementation, as well as the cooperation of the GSP+ beneficiary country with the relevant monitoring bodies. In doing so, the Commission shall assess the progress made by the GSP+ beneficiary countries in implementing their plans of action, as well as examine all relevant information, including the conclusions and recommendations of the relevant monitoring bodies as well as duly substantiated information submitted by individual citizens, private sector actors, civil society organisations, representatives of trade unions and other relevant stakeholders. The information may also be submitted via the Single Entry Point, which shall be accessible to stakeholders from both the Union and GSP+ beneficiary countries. The Commission, including through the EEAS and the delegations, should hold regular contacts with local and international civil society to assess the beneficiary countries’ implementation of the conventions listed in annex VI. A cycle of 3 years for the review, monitoring and assessment (hereinafter monitoring cycle) is hereby established. During the application period and monitoring cycle, the Commission shall also enquire the views …

Added:Article 13 – paragraph 2: 2. A GSP+ beneficiary country shall cooperate with the Commission and provide all information necessary to assess its respect of the binding undertakings referred to in Article 9, points (d) including the implementation of its plan of action, (e), and (f) and its situation as regards Article 9, points (b) and (c).

Added:Article 13 – paragraph 2 a (new): 2 a. The Commission, where applicable jointly with the EEAS, shall carry out at least one high-level monitoring mission per monitoring cycle to the beneficiary countries in order to assess progress on the ground, including in line with the plans of action. In the framework of the mission, relevant stakeholders, including civil society organizations and human rights defenders in the beneficiary countries shall be duly consulted.

Added:Article 13 – paragraph 2 b (new): 2 b. At the beginning of each monitoring cycle, the Commission shall send a list of issues to all GSP+ beneficiary countries outlining implementation issues that need to be addressed during the cycle. The lists of issues shall be made publicly available.

Added:Article 13 – paragraph 2 c (new): 2 c. The plans of action and the recommendations of the Commission and European External Action Service on priority implementation actions shall be taken into account in the EU development finance programming in order to support GSP+ beneficiary countries in attaining their commitments.

Added:Article 13 a (new): Article 13 a / Advisory Body / 1. The Commission shall be assisted in reviewing, monitoring and assessing the binding undertakings referred to in Article 9, points (d), (e) and (f) by an advisory body composed of stakeholders’ representatives. / 2. The Commission shall consult with the advisory body in regards to the plans of action submitted by the GSP+ beneficiary countries in view of their application to the GSP+ scheme; to that purpose, the participation to the advisory body shall be extended to stakeholders in the beneficiary countries. The Commission shall also consult with and report to the advisory body when assessing the implementation of the plans of action during each monitoring cycle and more generally throughout the cycle as regularly as necessary, including ahead of and after monitoring missions. / 3. The advisory body shall also monitor possible measures by GSP+ beneficiary countries’ legislation underminingthe due diligence requirements under Union law, and in particular Regulations (EU) No 2017/821, (EU) No 995/2010 and (EC) No 2368/2002.

Added:Article 14 – paragraph 1: 1. By 1 January 2027, and every two years thereafter, the Commission shall present to the European Parliament and to the Council a report on the status of ratification of the relevant conventions, the compliance of the GSP+ beneficiary countries with any reporting obligations under those conventions and the status of the effective implementation thereof, which includes scorecards that are being evaluated with the beneficiary countries and are also based on but not limited to the assessment of the implementation of the plans of action.

Added:Article 14 – paragraph 2 – subparagraph 1 – point b: (b) the Commission's and where appropriate the European External Action Service’s conclusions on whether each GSP+ beneficiary country respects its binding undertakings to comply with reporting obligations, to cooperate with relevant monitoring bodies in accordance with the relevant conventions and to ensure the effective implementation thereof, including through an assessment of the implementation of its plan of action, and

Added:Article 14 – paragraph 2 – subparagraph 1 – point b a (new): (b a) a copy of the scorecard that the Commission has evaluated with the beneficiary country

Added:Article 14 – paragraph 2 – subparagraph 2: The report may include any information from any source the Commission considers appropriate, including from civil society organizations and social partners.

Added:Article 14 – paragraph 3: 3. In drawing their conclusions concerning effective implementation of the relevant conventions, the Commission and where appropriate the European External Action Service shall assess the conclusions and recommendations of the relevant monitoring bodies. It shall also request the opinion of the European Parliament and the Council, and shall assess, without prejudice to other sources, information submitted by third parties, including complaints submitted through the Single Entry Point, such as governments and international organisations, civil society, and social partners.

Added:Article 15 – paragraph 1: 1. The special incentive arrangement for sustainable development and good governance shall be withdrawn temporarily, in respect of all or of certain products originating in a GSP+ beneficiary country, where that country does not respect its binding undertakings as referred to in Article 9, points (d), (e) and (f), including in case of major shortcomings in implementing or of systemic failure to implement the plan of action referred to in Article 9 point (d) are identified, or the GSP+ beneficiary country has formulated a reservation which is prohibited by any of the relevant conventions or which is incompatible with the object and purpose of that convention as established in Article 9, point (c).

Added:Article 15 – paragraph 3: 3. At the request of the European Parliament or where, either on the basis of the conclusions of the report referred to in Article 14 or on the basis of the evidence available, including evidence submitted by the European Parliament through its competent committees and through the relevant resolutions adopted during plenaries, and evidence submitted through a complaint, the Commission has a reasonable doubt that a particular GSP+ beneficiary country does not respect its binding undertakings as referred to in Article 9, points (d), (e) and (f), including with regards to implementation of its plan of action or has formulated a reservation which is prohibited by any of the relevant conventions or which is incompatible with the object and purpose of that convention as established in Article 9, point (c), it shall, in accordance with the advisory procedure referred to in Article 39(2), adopt an implementing act to initiate the procedure for the temporary withdrawal of the tariff preferences provided under the special incentive arrangement for sustainable development and good governance. The Commission shall inform the European Parliament and the Council thereof.

Added:Article 15 – paragraph 5: 5. The Commission shall provide the GSP+ beneficiary country concerned with every opportunity to cooperate and engage with a view to addressing the violations of its binding undertakings as referred to in paragraph 3 during the period referred to in paragraph 4, point (b).

Added:Article 15 – paragraph 6: 6. The Commission shall seek all information it considers necessary including, inter alia, the conclusions and recommendations of the relevant monitoring bodies. In drawing its conclusions, the Commission shall assess all relevant information, including from civil society organisations and social partners.

Added:Article 15 – paragraph 8: 8. Where the Commission considers, based on the elements referred to in paragraphs 5 and 6, that a temporary withdrawal is not justified, it shall adopt an implementing act to terminate the temporary withdrawal procedure in accordance with the advisory procedure referred to in Article 39(2). That implementing act shall be based inter alia on evidence received.

Added:Article 15 – paragraph 9: 9. Where the Commission considers that the findings justify temporary withdrawal for the reasons referred to in paragraph 1 of this Article, it is empowered to adopt delegated acts, in accordance with Article 36, to amend Annex I and Annex II in order to temporarily withdraw the tariff preferences provided under the special incentive arrangement for sustainable development and good governance referred to in Article 1(2), point (b). The Commission shall clearly and publicly state the grounds for withdrawing preferences and set clear benchmarks that the beneficiary country should meet for the preferences to be reinstated; such benchmarks may also guide a phased approach, including the progressive withdrawal or reinstatement of part of the benefits against clear benchmarks and conditions.

Added:Article 15 – paragraph 10 a (new): 10 a. During the application of a temporary withdrawal, the Commission shall continue the dialogue with the beneficiary country, including in the framework referred to in Article 18a, aiming at remedying the reasons for the withdrawal referred to in paragraph 3. The Commission shall regularly assess the effects of the withdrawal on remedying the violations, including in the report referred to in Article 14, as well as on the human rights and socio-economic situation of the population concerned. The Commission shall regularly consult with the advisory body referred to in Article 13a throughout the procedure.

Added:Article 17 – paragraph 1 a (new): 1 a. The Commission and, where applicable the EEAS, shall make sure that countries that benefit from the special arrangement referred to in paragraph 1 of this Article make continued and sustained progress towards ratifying the conventions listed in Annex VI. / EU development finance programming shall prioritise support to countries benefitting from the special arrangement referred to in paragraph 1 aiming to make progress towards the ratification of the conventions listed in Annex VI.

Added:Chapter V – title: Enhanced engagement and temporary withdrawal provisions common to all arrangements

Added:Article 18 a(new): Article 18 a (new) / In the framework of a Cooperation, Partnership or Association Agreement the EU has concluded with a beneficiary country, a general review of the status of the country in the framework of the preferential arrangements referred to in Article 1(2) shall be conducted yearly and in consultation with the European Parliament. To that purpose, the Commission, and where relevant the European External Action Service, and the beneficiary country shall review the issues pertaining to the conditions referred to in Article 19(1), including in relation to any complaints received by the Commission. The Commission, where relevant the European External Action Service, and the beneficiary country shall also review the status of the ratification of the conventions listed in Annex VI as referred to in Article4(1) point (c) and progress towards ratification of the conventions listed in Annex VI as referred to in Article 17(1a).

Added:Article 19 – paragraph 1 – introductory part: 1. The preferential arrangements referred to in Article 1(2) may be withdrawn temporarily, fully or partly, in respect of all or certain products or economic sectors, originating in a beneficiary country, for any of the following reasons:

Added:Article 19 – paragraph 1 – point a a (new): (a a) the beneficiary country fails to show effective implementation of the plan of action;

Added:Article 19 – paragraph 1 – point b a (new): (b a) when the Commission, acting upon a complaint or on its own initiative, considers that there may be sufficient grounds justifying temporary withdrawal of the tariff preferences provided under any preferential arrangement referred to in Article1 (2) on the basis of the reasons referred to in paragraph 1 of Article 19 a) or b), the Commission may before publishing the notice referred § 4 art 19 enhance its engagement with the partner country and negotiate a dedicated and timebound action plan to remedy the violations including through a full cooperation with the UN human rights and labour rights monitoring mechanisms;

Added:Article 19 – paragraph 1 – point b b (new): (b b) when the Commission decides to withdraw a preferential arrangement to a beneficiary country in a particular economic sector, in application of article 19 (a and b) the commission may publish a list of companies, EU importers and local suppliers, that may still benefit from preferences. This list should be established based on the evidence provided by companies that they fully implemented their human rights due diligence obligations and that they have a supply chain free from human rights violations;

Added:Article 19 – paragraph 1 – point c: (c) serious shortcomings in customs controls on the export or transit of drugs (illicit substances or precursors), or serious failure to comply with international conventions on antiterrorism or anti-money laundering;

Added:Article 19 – paragraph 1 a (new): 1 a. For the purpose of applying point 1 (a), the Commission will in particular take into account whether the relevant monitoring bodies, treaty mechanisms and supervisory mechanisms have signalled potentially serious and systematic violations of the principles of the relevant conventions, based on such indicators as: / - the establishment of commission of inquiries, fact-finding missions, country special rapporteurs, or other monitoring mechanisms by the UN Human Rights Council or General Assembly; / - findings by the UN High Commissioner for Human Rights, UN Special Procedures or other UN independent human rights experts; / - reports of the ILO Committee of Application of Standards; / - rulings and opinions by international human rights courts; / - reports by Advisory Body and civil society organisations.

Added:Article 19 – paragraph 2 a (new): 2 a. When in particular the seriousness of the violations of principles of the international conventions listed in Annex VI so requires, based on available assessments, comments, decisions, recommendations and the conclusions of the relevant monitoring bodies, or based on duly substantiated concerns expressed by the European Parliament, the Council, international organisations, and civil society including trade unions, or acting upon a complaint, the Commission shall notify the beneficiary country. / Starting from the date of the notification and during one year, the beneficiary country and the Commission shall enter into an enhanced engagement, where the country commits to adopt time-bound roadmaps providing for concrete actions and sustainable solutions to the serious and systematic violations as identified. / The Commission shall regularly consult with the advisory body referred to in Article 13a during the enhanced engagement process.

Added:Article 19 – paragraph 2 b (new): 2 b. If considered necessary, the enhanced engagement may be prolonged by up to another year. The Commission shall publish a list of countries with which enhanced engagement has been prolonged beyond one year and shall regularly update the list as necessary. The roadmaps referred to in paragraph 2a shall be made public.

Added:Article 19 – paragraph 3: 3. At the request of the European Parliament or where the Commission, acting upon a complaint or on its own initiative, considers that there may be sufficient grounds justifying temporary withdrawal of the tariff preferences provided under any preferential arrangement referred to in Article 1(2) because the beneficiary country has failed to deliver in the framework of the enhanced engagement or on the basis of the reasons referred to in paragraph 1 of this Article it shall adopt an implementing act to initiate the procedure for temporary withdrawal in accordance with the advisory procedure referred to in Article 39(2). The Commission shall inform the European Parliament and the Council of the adoption of that implementing act.

Added:Article 19 – paragraph 3 a (new): 3 a. The Commission shall inform the European Parliament and the Council about the complaints received. The Commission shall inform the complainant, the European Parliament and the Council where it decides that the complaint does not provide sufficient evidence in relation to the indicators referred to in this article.

Added:Article 19 – paragraph 4 – point b: (b) state that the Commission will continue to pursue dialogue in the framework of the enhanced engagement and monitor and evaluate the situation in the beneficiary country concerned during the monitoring and evaluation period referred to in Paragraph 5.

Added:Article 19 – paragraph 5: 5. The Commission shall provide the beneficiary country concerned with every opportunity to start engaging with and cooperate at any time during the monitoring and evaluation period of six months from the date of publication of the notice.

Added:Article 19 – paragraph 6: 6. The Commission shall seek all information it considers necessary, inter alia, the available assessments, comments, decisions, recommendations and conclusions of the relevant monitoring bodies, and relevant information from other sources, including evidence submitted through a complaint or provided by third parties , as appropriate. In drawing its conclusions, the Commission shall assess all relevant information and consider the progress made by the country in delivering on its roadmap in the framework of the enhanced engagement as referred to in paragraph 2a.

Added:Article 19 – paragraph 7: 7. Within three months from the expiry of the period referred to in paragraph 5, and after consultation of the advisory body referred to in Article 13(a), the Commission shall submit a report on its findings and conclusions to the beneficiary country concerned. The beneficiary country has the right to submit its comments on the report. The period for comments shall not exceed one month.

Added:Article 19 – paragraph 9: 9. Where the Commission considers, based on the elements referred to in paragraph 6, that a temporary withdrawal is not justified, it shall adopt an implementing act, in accordance with the advisory procedure referred to in Article 39(2), on the termination of the temporary withdrawal procedure.

Added:Article 19 – paragraph 10: 10. Where the Commission considers that the findings justify temporary withdrawal for the reasons referred to in paragraph 1 of this Article, it is empowered to adopt delegated acts, in accordance with Article 36, to amend Annex I and Annex II, in order to temporarily withdraw the tariff preferences provided under the preferential arrangements referred to in Article 1(2).

Added:Article 19 – paragraph 12 a (new): 12 a. During the application of a temporary withdrawal, the Commission shall continue the dialogue with the beneficiary country, including in the framework referred to in Article 18a, aiming at remedying the reasons for the withdrawal referred to in paragraph 1. The Commission shall regularly assess the effects of the withdrawal on remedying the violations, and shall consult with the advisory body referred to in Article 13a.

Added:Article 19 – paragraph 16: 16. Where the Commission considers that there is sufficient evidence to justify temporary withdrawal for the reason set out in paragraph 1, point (a) and the exceptional gravity of the violations calls for a rapid response in view of the specific circumstances in the beneficiary country, it shall initiate the procedure for temporary withdrawal in accordance with paragraphs (3) to (15). However, the period referred to in paragraph 4, point (b) is reduced to 1 month and the deadline referred to in paragraph 8 is reduced to 3 months.

Added:Article 40 – paragraph 1: By 1 January 2027 and every two years thereafter, the Commission shall submit to the European Parliament and to the Council a report on the effects of the scheme covering the most recent two-year period and all of the preferential arrangements referred to in Article 1(2).

Added:Annex VI – paragraph 1 – row 1 a (new): Rome Statute of the International Criminal Court (1998)

Added:Annex VI – paragraph 1 – row 1 b (new): First Optional Protocol to the International Covenant on Civil and Political Rights (1966)

Added:Annex VI – paragraph 1 – row 1 c (new): ILO Indigenous and Tribal Peoples Convention (1989)

Added:having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

Changed:Article 4 – paragraph 1 b (new): 1b. EU development finance programming under the Neighbourhood,Neighborhood, Development and International Cooperation Instrument - Global Europe established by Regulation (EU) 2021/947 of the European Parliament and of the Council in support of countries benefitting from the special arrangement referred to in paragraph 1 shall prioritiseprioritize ratification of the conventions listed in Annex VI and the adoption of a National Action Plan as referred to in paragraph 1a.VI.

Changed:Article 17 – paragraph 2 – subparagraph 2: Where an EBA beneficiary country no longer fulfils the economic criteria referred to in paragraph 1 of this Article, the Commission is empowered to adopt delegated acts, in accordance with Article 36, to amend Annex I in order to remove the country from the EBA arrangement following a transitional period of three years as from the date on which the EBA beneficiary country no longer fulfils the economic conditionscriteria referred to in paragraph 1 of this Article.

Changed:Recital 2: (2) The external action of the Union is guided by the principles and objectives laid down in Article 21 of the Treaty on European Union.TheUnion. The Union seeks to advance those principles and objectives in its relations with third countries. All actions and measures taken by the Union at the international level should therefore be considered, designed and implemented with a view to ensuring a coherent approach towards partner countries, and reinforcing the relevance and strength of the impact of Union's external action. For that purpose, the Union should ensure that its commercial policy is conducted in close coordination with other external policies, and that regular contact with partner countries foreseen in the framework of the various instruments of the external action duly follow up on the obligations and issues identified in the implementation of the Union's trade relations and trade-related instruments. The GSP covers more than 60 countries and 2 billion people in the world and represents one of the key instruments of the Union commercial policy to promote human rights, sustainable development and good governance.