EU Cannot Grant Permanent GSP for Vietnam

The European Union (EU) is unable to grant permanent Generalized System of Preferences (GSP) for Vietnam as it will be contrary to the World Trade Organization (WTO)’s regulation on discrimination, said an EU official October 22.

 

“Regarding GSP, we must treat all developing countries equally,” Deputy Director General for External Relations of the European Commission cum Head of the EU Negotiation Delegation on the partnership and cooperation agreement (PCA) with Vietnam, Joao Aguiar Machado told after the conclusion of the second round of talks on the PCA.

 

Though the PCA was this discussion’s focus, GSP was still on its agenda, said Machado.

 

“Although we cannot satisfy Vietnam’s desire for permanent GSP grant, I feel pleasured with this negotiation round which helps the two sides to understand each other’s opinions and status,” the diplomat said.

 

Vietnam is expected to earn US$11.18 billion from exports to the EU this year, up 23 per cent on-year and making up 92.1 per cent of the country’s export turnover to Europe, said the MoIT.

 

To gain the goal, the country plans to expand its exports to the EU new markets such as Lithuania, Czech, Hungary, Poland, and Estonia with key cash earners of apparel, footwear, seafood and woodwork. (Youth)