Press release

The General Affairs Council (GAC) of the European Union decided that the EU will grant further customs privileges to the world's least-developed countries. The decision, which has immediate effect, implies duty-free imports to the EU for all products with the exception of bananas, sugar and rice. For these goods, a successive phasing out of tariffs will apply. Bananas will be duty-free by 2006 and sugar and rice by 2009. But already this year, duty-free imports will be permitted for limited quotas of sugar and rice.

"It also shows that we are serious and that we want to tray to improve the economic conditions of the least-developed countries. This gives an important signal to the UN conference on the least-developed countries this May and for the forthcoming negotiations in the World Trade Organisation, WTO", said Minister for Trade Leif Pagrotsky, representing Swedish Presidency of the European Union.

The initiative for the newly approved customs privileges was taken by the European Commission in October 2000. It is known as the EBA initiative (Everything-but-Arms), since it covers all goods except arms. Many goods from the least-developed countries are already exempt from customs duties. The current decision means an immediate exemption for almost all products from 48 of the world's poorest countries including Bangladesh. About 46 percent of Bangladesh exports go to EU with an overwhelming dominance of the ready made garments. A substantial component of these exports enjoy duty-free status under the existing GSP, current phase of which will expire on 31 December 2001.

The Council also agreed to monitor imports and to introduce safeguards if necessary. There will be monitoring to verify respect for rules of origin, and to prevent fraud. EU Trade Commissioner Pascal Lamy said "This is a worldwide first. At the end of the day, they (the 48 countries) will have 100% access with no exclusions, except arms, of course".

Delegation of the European Commission to Bangladesh
House 7, Road 84
Dhaka 1212
Bangladesh