What changed between the draft committee report and the plenary report

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;

Article 2 – point 10 b (new): (10b) ‘enhanced engagement’ means a dialogue aiming to facilitate and incentivise countries benefitting from the arrangements referred to Article 1 paragraph 2 to make progress on critical areas with regard to the relevant international conventions and whereby the countries and the Commission reach a common understanding on concrete priority actions and sustainable solutions to address serious shortcomings in respect of the conventions;

Change 14

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;

Article 2 – point 11: (11) ‘effective implementation’ means the integral implementation of the undertakings and obligations undertaken under the international conventions listed in Annex VI, thus ensuring fulfilment of the principles, objectives and rights guaranteed in these conventions in the beneficiary country’s entire territory, including in its special economic zones and export processing zones;

Change 15

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.

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

Change 16

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.

Change 17

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.

Change 18

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:

Change 19

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.

Article 6 – paragraph 2: 2. The Commission is empowered to adopt delegated acts in accordance with Article 36, to amend Annex III in order to: / (a) incorporate changes made necessary by amendments to the Combined Nomenclature; / (b) modify the classification of products as sensitive or non-sensitive.

Change 20

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.

Change 21

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.

Article 10 – paragraph 5: 5. Where a GSP+ beneficiary country no longer fulfils the conditions referred to in Article 9, points (a) or (c) or withdraws any of its binding undertakings referred to in Article 9, points (d), (e), and (f), including outstanding issues related to the implementation of its plan of action, the Commission is empowered to adopt a delegated act in accordance with Article 36, to amend Annex I in order toremove that countryfrom the GSP+ arrangement.

Change 22

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).

Change 23

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.

Change 24

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)

Change 25

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.

Article 14 – paragraph 1: 1. By 1 January 2027, and every three 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, also based on the assessment of the implementation of the plans of action.

Change 26

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.

Change 27

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).

Change 28

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).

Change 29

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…

Change 30

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.