EU to revamp trade benefits for emerging countries

The European Union executive is set to prune back the number of countries to whom it gives preferential trade treatment, according to a draft law seen by Reuters on Monday. More than 60 countries including economic powerhouses such as Brazil, Argentina and Russia but also much poorer countries such as Ghana, Kenya and Zimbabwe will lose low-tariff access to EU markets, according to the document.
The proposal is a first step in the EU''s attempts to revamp tariffs designed to help poor countries while protecting its own industrial interests and formalise ties with trading partners. This reform is expected to take until late 2013. Due to be unveiled Tuesday by EU trade chief Karel De Gucht, the reform plan for the so-called Generalised System of Preferences has already drawn criticism - from Europe''s protectionist camp for extending tariff cuts but also from foreign producers and EU importers.
"If adopted, this will cost Saudi, Malaysian, Argentine, Brazilian and Russian exporters millions, as it will their customers in the EU," said Nikolay Mizulin, trade lawyer at international law firm Hogan Lovells. Countries, including many poorer ones, which have already agreed trade agreements with the EU will be excluded from duty breaks.