PURPOSE: to repeal Council Regulation (EC) No 552/97 temporarily withdrawing access to generalised tariff preferences from Myanmar/Burma.

LEGISLATIVE ACT: Regulation (EU) no 607/2013 of the European Parliament and of the Council repealing Council Regulation (EC) No 552/97 temporarily withdrawing access to generalised tariff preferences from Myanmar/Burma.

CONTENT: Council Regulation (EC) No 732/2008 applying the current scheme of generalised tariff preferences provides that the preferential arrangements may be withdrawn temporarily, in respect of all or of certain products originating in a beneficiary country, for the serious and systematic violation of principles laid down in 15 of the 27 international conventions listed in its annex, on the basis of the conclusions of the relevant monitoring bodies. The conventions in question also cover fundamental rights of workers and forced or compulsory labour, in particular.

Myanmar/Burma's access to the GSP tariff preferences was temporarily withdrawn by Council Regulation (EC) No 552/97 due to routine and widespread practice of forced labour, confirmed by the International Labour Organisation (ILO), in a special procedure of its Commission of Inquiry.

Since 2011, Myanmar/Burma has been undertaking a historic programme of openness and reform and the Council is now in favour of reinstating the Generalised System of Preferences (GSP) for Myanmar/Burma once the required conditions are fulfilled, following the assessment of the International Labour Organisation.

On 13 June 2012, the International Labour Conference (ILC) lifted restrictions, which excluded the Government of Myanmar/Burma from receiving ILO technical cooperation and assistance. Accordingly, the violations cannot be any longer considered as "serious and systematic" and it is thus appropriate that Myanmar/Burma’s access to generalized tariff preferences is reinstated .

Moreover, in a specific report, published on 17 September 2012, the Commission itself recognised the progress made by Burma/Myanmar in satisfying the ILO’s recommendations and recommended that the generalised tariff preferences should be reinstated in its case.

As a result, the European Parliament and the Council decided to repeal Council Regulation No 552/97 to take into account the new situation.

The Commission shall continue to monitor developments in Myanmar/Burma with respect to forced labour and react to them in accordance with the procedures in force, including, if necessary, with renewed withdrawal procedures.

ENTRY INTO FORCE: the Regulation enters into force on 19.07.2013. It is retroactively applicable from 13 June 2012.

The European Parliament adopted by 504 votes to 95, with 8 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council repealing Council Regulation (EC) No 552/97 temporarily withdrawing access to generalised tariff preferences from Myanmar/Burma.

Parliament adopted its position at first reading taking over the Commission proposal.

It should be noted that Parliament rejected all amendments proposed in plenary by the Greens/EFA and GUE/NGL groups.

The Committee on International Trade adopted the report by David MARTIN (S&D, UK) on the proposal for a regulation of the European Parliament and of the Council repealing Council Regulation (EC) No 552/97 temporarily withdrawing access to generalised tariff preferences from Myanmar/Burma.

The committee recommends that the European Parliament adopt its position in first reading taking over the Commission proposal.

PURPOSE: to repeal Council Regulation (EC) No 552/97 temporarily withdrawing access to generalised tariff preferences from Myanmar/Burma.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

BACKGROUND: the Generalised Scheme of Tariff Preferences (GSP scheme) is part of the European Union's common commercial policy, in accordance with the general provisions governing the European Union's external action.

Council Regulation (EC) No 732/2008 applying the current GSP scheme provides that the preferential arrangements provided for in this Regulation may be withdrawn temporarily, in respect of all or of certain products originating in a beneficiary country, for the serious and systematic violation of principles laid down in fifteen out of the twenty-seven international conventions listed in its Annex, on the basis of the conclusions of the relevant monitoring bodies. The relevant conventions also cover core labour rights such as forced labour.

Myanmar/Burma's access to the GSP tariff preferences was temporarily withdrawn by Council Regulation (EC) No 552/97 due to routine and widespread practice of forced labour, confirmed by the International Labour Organisation (ILO), in a special procedure of its Commission of Inquiry.

Since 2011, Myanmar/Burma has been undertaking a historic programme of openness and reform and the Council is now in favour of " reinstating the Generalised System of Preferences (GSP) for Myanmar/Burma as soon as possible once the required conditions are fulfilled , following the assessment of the International Labour Organisation".

On 13 June 2012, the International Labour Conference (ILC) lifted restrictions, which excluded the Government of Myanmar/Burma from receiving ILO technical cooperation and assistance. Accordingly, the violations cannot be any longer considered as "serious and systematic" and thus the tariff preferences should be reinstated according to the current GSP Regulation.

For these reasons, it is recommended that Myanmar/Burma’s access to generalized tariff preferences should be reinstated .

IMPACT ASSESSMENT: no impact assessment was undertaken.

LEGAL BASIS: Article 207 of the Treaty on the Functioning of the European Union (TFEU).

CONTENT: with this proposed Regulation, it is envisaged to repeal Council Regulation (EC) No 552/97 for the reasons described above.

It should be noted that in the absence of explicit reinstatement provisions in the current GSP Regulation, and in light of the provisions of the Treaty of Lisbon, the ordinary legislative procedure is applied for the adoption of the reinstatement of preferences for Myanmar. This is a one-off procedure aimed at responding to a clear and present political need as expeditiously as possible. The new GSP Regulation which will apply only as of 1 January 2014 redresses the absence of reinstatement provisions.

BUDGETARY IMPLICATIONS: the proposed Regulation does not incur costs to the EU budget and its application entails a very limited loss of customs revenue . The actual loss of customs revenue resulting from reintegration of Myanmar/Burma is estimated at less than €5 million and is due to a structural lack of production and trading capacity in the country.