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EU's trade system can better help world's workers says TUC

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EU's trade system can better help world's workers says TUC.

By adopting robust and transparent processes, the EU's Generalised System of Trade Preferences to developing countries (the "GSP" system), could better reward countries genuinely interested in the well-being of their workforce, and put real pressure on serial labour rights abusers such as Iran and Colombia, according to the TUC's submission to a European Commission consultation.

The EU's GSP system is an important instrument of EU trade policy in assisting developing countries to gain more revenue and growth from trade, and through its incentive structures, to link this with the promotion of sustainable development and good governance. Despite some success, particularly in the case of Belarus and Burma, the overall impact of the system on actual improvement of labour standards is much less clear, especially given the system's lack of transparency and benchmarks to measure progress by. Further, the general trend of preference erosion and the low take-up of the GSP+ component threaten the scheme's long term effectiveness.

To improve the effectiveness of the system to deliver on its development and good governance objectives, and ensure the confidence of working people globally, the revised GSP regulation should have (consultation questions in brackets):

clearer definitions and benchmarks of effective implementation and for the temporary withdrawal provisions (see questions 20, 27, 28, 32);

stronger and more transparent processes for monitoring compliance, conducting investigations and assessing applications (questions 20, 26);

better incentives and more targeted technical assistance to help developing countries drive improvements in implementation (Question 20);

clearer and more consultative procedures for filing a complaint, commencing an investigation, approving applications, and readmitting countries to the scheme (including a role for the European Parliament) (see questions 33); and

clearer and improved role for social partners in monitoring compliance and triggering investigations (questions 26, 33).

The TUC's submission has been prepared in conjunction with the European Trade Union Confederation (ETUC) and the International Trade Union Confederation (ITUC). The submission answers select questions taken from the European Commission's online public consultation page.

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