European Union to ease GSP procedures for ASEAN
European Union to ease GSP procedures for ASEAN
JAKARTA (JP): A leader of the Indonesian Chamber of Commerce and Industry (Kadin) predicted yesterday that the European Union would reduce its aid to the world's least-developed countries but that it would facilitate entry of imports through the generalized system of preferences (GSP).
The reduction in aid would result from a redirection of EU funds to eastern Europe, according to Aminuddin, Kadin's Vice Chairman for International Trade.
"But the EU will provide the least-developed countries, including ASEAN, with easier access to its market through the simplification of GSP procedures," he said yesterday.
Aminuddin said that most of the least-developed countries had so far failed to take full advantage of GSP trading privileges to increase their exports to Europe.
Indonesia, for example, had tapped only about 55 percent of the market for products eligible for GSP treatment in 1989, he said, quoting an EU study.
He said that the EU would increase the quotas for textiles and apparel imports from the least-developed countries during the 10 year transitional period between the current MultiFiber Arrangement and the advent of the World Trade Organization.
"The EU will increase textile quotas through an outer processing trade arrangement designed to encourage joint ventures between EU companies and textile and apparel makers in the least- developed countries, including ASEAN members," he added.
Companies eligible for larger quotas under the outer processing trade scheme are those which produce high-quality garments using materials imported from EU countries, Aminuddin said.
He cautioned, however, that EU also would tighten anti-dumping measures.
Aminuddin called on Indonesian businesses to be more active in establishing business contacts with the EU through the Brussels- based Euro Chambers.
"Euro Chambers has various committees in charge of promoting trade, investments and human resource development in various areas," he said. (vin)