Recent Developments in the EEC External Pre¬ferential Agreements. Trade or Cooperation?

This work deals with the EC’s generalized system of preferences. It represents a clear example of the existing dilemma of the RC ‘s trade policy towards the developing countries. On the one hand, the Community whishes in principle to assist the development of the Third World, the adjustment consequences of a more « liberal » EC’s trade policy are politically costly on the other. As a consequence, this paper focuses on some major contradictory elements of the GSP and the existing conflicts in the broader community trade policy. Particularly, three points are relevant for a reviewing of the tariff preferences implementation. Firstly, the Single European Market does not permit to maintain the system of distribution of the burden of liberalization; secondly, the political relations with central and eastern European countries will shift economies and commercial priorities from LDCs; finally, the Uruguay Round will erode furtherly preferential margins. Such a trend needs in short and medium term a complete reviewing of GSP and a more coherent RC’s external trade policy.