Select Committee on European Scrutiny Third Report


17 Withdrawal of tariff preferences from Belarus

(28087)

Draft Council Regulation temporarily withdrawing access to the generalised tariff preferences from the Republic of Belarus

Legal baseArticle 133EC; QMV
DepartmentTrade and Industry
Basis of considerationEM of 30 November 2006
Previous Committee ReportNone
To be discussed in Council5 December 2006
Committee's assessmentPolitically important
Committee's decisionCleared

Background

17.1 The Community's generalised system of preferences ("GSP") allows for the partial or total removal of the preferential arrangements for products originating in a beneficiary country under certain circumstances, including for serious and systematic violations of the principles laid down in the "core human and labour rights" conventions of the United Nations and the International Labour Organization (ILO). Belarus is one of the GSP beneficiary countries, but, at the end of 2003, at the instigation of international trade unions, the Commission published its decision to initiate an investigation into alleged violations of the freedom of association and the right to collective bargaining in Belarus.

The current proposal

17.2 In its introduction to this proposal, the Commission says that it investigated the institutional framework, the key institutions, the structure of social partnership and the relevant Belarussian legislation, compared them with international standards, and made use of the conclusions and recommendations of the ILO's Committee on Freedom of Association and its Committee of Experts,[34] as well as of UN reports. In addition, testimonies were provided by the primary national stakeholders, and their partner organisations at the international level, supplemented by interviews with representatives of government and employers' organisations, as well as all relevant international agencies, non-governmental organisations and European Commission staff.

17.3 The Commission says that this investigation found that Belarus is impeding the right to establish trade union organisations freely, the right to organise, the right to choose among trade union organisations, and the right of such organisations to legal recognition and to external funding. Belarus is thus promoting anti-union discrimination and the dissolution or suspension of trade unions. It also notes that the ILO set up a parallel "Commission of Inquiry" which, in its report of July 2004, formulated 12 recommendations with which the Belarus Government needed to comply before June 2005, in order to remedy the unsatisfactory application of the relevant ILO's Conventions.[35]

17.4 In accordance with the procedure laid down in the Council Regulation[36] applying the GSP, the Commission decided to open a six-month period for monitoring and evaluating the situation, and, in so doing, granted Belarus further time in which to make the commitment to take the measures needed to conform with the Fundamental Principles and Rights at Work, as expressed in the 12 recommendations by the ILO Commission of Inquiry in July 2004. However, it reports that Belarus had not made the requisite commitment within this six-month period of monitoring and evaluation (ending in March 2006), and that this still remained the position in October 2006.

17.5 It has therefore concluded that the grounds for a temporary withdrawal of the preferential arrangement for products originating in Belarus therefore persist, and that, given the continued violation of the rights specified above, these continue to be more and more urgent every day. It has therefore proposed that the Council should adopt such a measure within one month, and that the Regulation should enter into force after six months, unless the situation changes before then. The Commission also says that the situation should be kept under review, to enable the re-establishment of the preferential arrangement for products originating in Belarus if the violations of the freedom of association and of the right of collective bargaining there no longer exist.

The Government's view

17.6 In his Explanatory Memorandum of 30 November 2006, the Minister for Trade, Investment and Foreign Affairs at the Department of Trade and Industry (Mr Ian McCartney) says that the UK supports the proposal, which is in accordance with Council Regulation 980/2005. He adds that there is unlikely to be any significant impact for the UK (or other Member States), the main effects being more likely to be political, with the Belarussian Ambassador having explained to UK-based officials that the Community would be undermined in the eyes of the people of Belarus, who would see this measure as the fault of the Community, not that of their own government. However, the Minister suggests that those associated with the independent trade unions and democratic forces generally in the country are aware of the issues, and would, on the contrary, feel let down if the Community were not to pursue the issue. He also says that the Community has just produced a "non-paper" addressed to the people of Belarus, designed to show what "their government is foregoing in their name by rejecting democracy", but he adds that the situation will be kept under review to ensure that preferential access can be speedily re-instated once the necessary conditions have been met.

Conclusion

17.7 Although the action proposed here appears in itself to be uncontentious, we think it right to draw to the attention of the House the circumstances which have given rise to the need for a measure of this sort.


34   According to the Commission, the recommendations of these two Committees are the main reference on interpretation of international labour law and rules of correlation between national and international standards. Back

35   Convention No 87 concerning Freedom of Association and Protection of the Right to Organise, and Convention No 98 concerning the Application of the Principles of the Right to Organise and to Bargain Collectively. Back

36   Council Regulation (EC) No. 980/2005. OJ No. L 169, 30.6.05, p.1. Back


 
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Prepared 19 December 2006