The European Union sponsored European Commission’s public consultation on possible reforms to the Generalised System of Preference (GSP) which started on 11 March 2020 will expire on 3 June 2020.
As the GSP Regulation will expire on 31 December 2023, the Commission is seeking stakeholders’ input to develop a new regulatory framework, which is of great significance for Bangladesh as it would determine whether the country would continue to enjoy the new GSP facility that would come into effect from January 2023.
It may be mentioned here that the 27-member economic bloc (EU) is a major apparel export hub for Bangladesh.
European Union is the destination for around Bangladesh’s 60 per cent shipments every year.
The GSP facility first came into being in 1971 with the objective of helping the poorer countries in their effort to have a sustainable economic, social and environmental development.
As part of this scheme, beneficiary countries are allowed easy access to goods imported into the EU. This in turn facilitates additional revenue generation for the internal economy of the concerned nation.