What is the impact of the EU's proposed cancellation of trade preferences on China?

Since 2014, some developing countries including China and Russia may be disqualified from enjoying preferential tariffs. According to the website of the Ministry of Commerce, the EU announced on the 10th of this month that it will reform the preferential policy for the import of developing countries to the “GSP system”. From January 1, 2014, it plans to enjoy 176 preferential import benefits from the EU. The number of countries and regions has been reduced to about 80.   The EU intends to cancel the impact of trade preferences on emerging trade countries on China's trade. China is a developing country. Since the end of 1979, it has enjoyed GSP treatment. Currently, the GSP is given to the EU as well as Japan, Canada, Switzerland, Norway, Australia, New Zealand, Russia and other countries. The United States has not yet given China’s GSP treatment. The "GSP" has played an invaluable role in China's foreign trade, mainly as follows: First, improve the competitiveness of China's export commodities in the international market and expand exports. According to statistics, during the 20 years from 1980 to 2000, the country had a total of 13.41 million visas, and the visa amount reached 313.445 billion US dollars. The tariff reduction and exemption rate was calculated at 6%. China's export goods can be exempted from tariffs of 18.81 billion US dollars. Secondly, it is conducive to improvement. The foreign investment environment attracts foreign investment; once again, it is conducive to accelerating the improvement of the localization of China's export products. Many export enterprises in China benefit from the GSP's share of the tariff reduction and exemption. The cancellation of the GSP will bring certain unfavorable factors to exports. If the "GSP" is abolished and the tax rate of China's products is increased, it will increase the cost of China's export products, or it may cause some foreign importers to choose another country of purchase. This may cause a serious blow to China's export products. What we have to see is that there is no free lunch forever in the world, and the GSP is not eternal. The GSP is only a phased product of the development of world economic trade. It is impossible for developed countries to grant GSP treatment to developing countries without restrictions. After the level of economic development in developing countries reaches a certain level, developed countries will inevitably cancel their GSP arrangements. Although the EU claims that the cancellation of trade preferences for emerging market powers is to enable LDCs to truly enjoy trade preferences, in fact, since the financial crisis, European and American countries have begun to implement increasingly tough trade policies to ensure The economic development of the country and the competitiveness of its products in the global market. From the actual situation in China, the GSP is also a double-edged sword. On the one hand, China can get the benefits of increasing tariff revenue and protecting high-quality industries, but in the long run, it will also have the negative effect of protecting backwardness and losing efficiency. If the cancellation of the “GSP” can prompt domestic enterprises to shift from price advantage to quality advantage, and encourage enterprises to actively carry out technological transformation, adjust product structure, improve the power of producing high value-added products, and further improve their competitiveness, this is one. A good thing. EU-related trade policy introduction: EU will reform "GSP" The EU reform "GSP" is based on the fact that the current tariff system for imported products from developing countries and emerging industrial countries was established in the 1970s, and now the global economy The imbalance is serious, and some emerging market countries are entering the ranks of the global economic powers. Therefore, it is no longer appropriate to continue to enjoy preferential tariffs. The EU hopes to cut the number of developing countries that enjoy the “GSP” by half and concentrate the concessions on those countries that really need it. According to People’s Daily, the amount of “Inclusive” in the EU reached 60 billion euros in 2009, equivalent to 4% of the total import trade of the EU, accounting for 9.3% of the total trade volume of EU importing developing countries, 40% of which is from Russia, Brazil and China. Enjoy in emerging market countries such as India and Thailand. The revised “Inclusive” amount is approximately 37.7 billion Euros. According to the standards set by the World Bank, the countries and regions that have been canceled the “GSP” are roughly classified into the following three categories: First, countries and regions where per capita income has reached high or medium-high levels, such as Kuwait, Russia, Saudi Arabia, and Qatar; Countries and regions that have signed free trade agreements or special trade mechanisms with the EU, they can enjoy more preferential trade policies than the GSP; third, countries and regions that have alternative market access mechanisms for developed countries. In addition, the EU will carry out special trade incentives for countries and regions that meet EU labor standards, environmental protection and government governance standards. The GSP is a tariff system, the full name of which is the Generalized System of Preferences (GSP), which is the export product of developed countries (retributing countries) to developing countries (beneficiary countries) (mainly industrial A tariff reduction or tax exemption system for finished and semi-finished products. At present, the tariffs on export products under the GSP are on average about 1/3 lower than the MFN tariff rate. It is the lowest tariff and most attractive tariff system in the world. The predecessor of the European Union, the European Community, took the lead in implementing the first GSP scheme in 1971. The US GSP was enacted at the end of 1975 and was introduced in 1976. It should be pointed out that the GSP is not a permanent international trading system. The United Nations stipulates that it is valid for 10 years and will be postponed after the expiration. Since 1971, the EU has implemented preferential trade measures such as the “GSP” for developing countries. The current GSP arrangement began in 1995. The main features of the GSP are universality, non-discrimination, and non-reciprocity. That is, all developed countries give universal preferential treatment to manufactured and semi-manufactured products exported by all developing countries; developed countries should unilaterally provide tariff preferences to developing countries without requiring developing countries to treat developed countries equally. .

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