Suspension Of Burma's GSP

[waterly@xxxxxxxxx]

                 Copyright 1997 European Information Service
                                European Report

                               February  12, 1997


HEADLINE: SUSPENSION OF  BURMA'S  GSP BENEFITS FOR FARM TRADE IN THE OFFING

     The European Commission is likely to approve a proposal in the coming days
recommending the suspension of the trade advantages  Burma (Myanmar)  receives
for its agricultural products under the Union's Generalised System of
Preferences. It is acting on the basis of a complaint filed jointly in January
by the International Confederation of Free Trade Unions (ICFTU) and the European
Trade Union Confederation (ETUC), which argued that GSP benefits should be ended
until the country terminates the routine and widespread use of forced labour.

    This is only the second time the Commission will have used new powers
granted under the 1994 GSP Regulation to recommend the withdrawing of GSP

benefits. On December 19, after a months-long investigation following a
complaint from the two trade unions, it asked the Council to withdraw  Burma's
access to trade preferences for industrial goods.

    The Commission is planning to ask the Council to consult the European
Parliament on the case, as it did for industrial goods. But is relatively
optimistic that the assembly, given its past Resolutions condemning human rights
abuses in  Burma,  will give its Opinions on both cases quickly so that the
Council can adopt the Regulations, possibly by the end of February. The Council
has not yet asked the Parliament formally for an Opinion on the suspension of
industrial benefits, but instead seems to be waiting to receive the proposal on
agricultural products before sending them to MEPs for them to consider the two
proposals simultaneously.

    Once adopted, the Regulation on the suspension of GSP benefits for
industrial goods would come into force three days after its publication in the
Official Journal, but goods already en route to the EU would not be affected by
it. It is expected that the Regulation on agricultural products would contain
similar provisions.

    In October 1996, the EU Council approved a ban on entry visas for senior
Burmese military or Government officials and suspended high-level bilateral

Government visits to  Burma.  It also extended an arms and weapons embargo
against  Burma  and confirmed the suspension of non-humanitarian aid and
development programmes.