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Human Rights and Democracy - Official Documents

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In May the European Commission concluded negotiations for the EU Multi Party<br />

Trade Agreement with Colombia <strong>and</strong> Peru. During the negotiations, the UK led<br />

efforts within the EU to ensure that a legally binding <strong>and</strong> robust human rights clause<br />

was included in the text of the agreement. The agreement will go through legal<br />

scrutiny in 2011.<br />

Generalised System of Preferences<br />

The Generalised System of Preferences (GSP) is one of the most important<br />

instruments available to the EU in linking human rights with trade. There are three<br />

tiers of benefits: the st<strong>and</strong>ard GSP, the special arrangements for sustainable<br />

development <strong>and</strong> good governance (GSP+) <strong>and</strong> the Everything But Arms (EBA)<br />

initiative.<br />

Under the GSP Regulation, the European Commission may launch an investigation if<br />

there is evidence of grave <strong>and</strong> systematic violations of the international human rights<br />

<strong>and</strong> labour rights conventions cited in the GSP Regulation. If the conventions are<br />

judged to have been breached, all GSP arrangements may be temporally withdrawn.<br />

Countries where privileges have been withdrawn are encouraged to improve their<br />

human rights situation, with a view to renewing the arrangements. To date, st<strong>and</strong>ard<br />

GSP has been withdrawn on only two occasions: in Burma in 1997 due to the<br />

systematic use of forced labour; <strong>and</strong> in Belarus in 2007 for the widespread violation<br />

of trade union rights.<br />

GSP+ offers additional incentive arrangements to developing countries which have<br />

ratified <strong>and</strong> effectively implemented 27 core international conventions on human<br />

rights, labour rights, environment <strong>and</strong> good governance principles <strong>and</strong> allows them<br />

to export goods to the EU at preferential tariff rates. There are currently 15 GSP+<br />

beneficiary countries. GSP+ privileges can be withdrawn in the event of a serious<br />

breach of human rights in the beneficiary country, as well as if the beneficiary<br />

country’s domestic legislation is amended in such a way that it no longer<br />

incorporates the obligations of the relevant international conventions.<br />

Sri Lanka had been a beneficiary of GSP+ since 2006. In October 2008, the<br />

European Commission initiated an investigation into Sri Lanka’s implementation of<br />

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