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)