Case Studies on GSP+ Countries

• Author: Development Solutions Europe Limited, Directorate-General for Trade (European Commission)
• Pages: 203-242

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7 Case Studies on GSP+ Countries

This section will provide an in-depth overview of the impact of the GSP + on Bolivia

(Section 7.1) and Pakistan (Section 7.2). The economic, social, environmental and

human ri ghts impacts of the scheme will be analysed. This will be followed by

discussions on the impact of the GSP+ on th e implementation of the relevant

international conventions and the political resolve to implement and adhere to these

conventions, as well as on the role and associated impact of the scheme’s monitoring

framework. Lastl y, the level of awareness of GSP+ requirements among key

stakeholders will be explored.

7.1 Impact of the GSP+ on Bolivia

7.1.1 Economic impact

The EU is becoming an increasingly important trade partner for Bolivia. In 2016, the EU

was Bolivia’s fourth l argest export destination. Figure 53 below shows that in terms of

monetary value, exports to the EU have increased by almost 50 per cent since 2011.

Bolivia’s exports to the EU have continuously increased at an average rate of

12.5 per cent per y ear until 2015. This year marked the peak in Bolivia’s exports to the

EU, with a total export value of EUR 588.8 mi llion. This upward trend abruptly stopped in

2016, when the export value dropped by 11.25 per cent to EUR 522.6 mi llion.

Figure 53: Bolivia’s total exports to the EU (2011-2016)509

Figure 54 below dem onstrates that Bolivia has a relatively diverse export basket under

GSP+. Its GSP+ exports to the EU are domin ated by food and agricultural products, such

as cereals and p reparations of cereals, wh ich accounted for 56 per cent of GSP+ exports

in 2016. Several other agricultural and food products, including beverages, spirits and

vinegar, have also benefitted from GSP+ preferences and have increased in export

volume between 2011 and 2016. Other export products exported by Bolivia include

wood, leather products and chemicals.

509 Source: own calculations based on trade data supplied by the European Commission.

0

100

200

300

400

500

600

700

2011 2012 2013 2014 2015 2016

IN MILLION EUR

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Figure 54: Composition of Bolivia's exports under GSP+ by HS Section (2016)510

Bolivia’s main expo rt products to the EU, ores, slag and ash, are not traded under the

GSP+ but under MF N tariffs. When the analysis of t he exports to the EU is extended to

include MFN exports, it becomes evident th at export diversification in Bolivia is r elatively

limited, and that its exports to the EU are largely dominated by mineral resources. Out

of the total export value in 2016, only EUR 58 .3 million, or 11.2 per cent, were eligible

for GSP+.

510 Source: own calculations based on trade data supplied by the European Commission. Pie chart is to be read

in a clock-wise direction. HS Chapters description: 10: Cereals; 18: Cocoa and cocoa preparations;19:

Preparations of cereals, flour, starch or milk; pastry cooks' products; 20: Preparations of vegetables, fruit, nuts

or other parts of plants; 22: Beverages, spirits and vinegar; 28: Inorganic chemicals; organic or inorganic

compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes; 33: Essential oils

and resinoids; perfumery, cosmetic or toilet preparations; 41: Raw hides and skins (other than furskins) and

leather; 44: Wood and articles of wood; wood charcoal; 61: Articles of apparel and clothing accessories,

knitted or crocheted.

32.86%

23.41%

12.18%

6.35%

4.57%

4.07%

3.74%

2.97%

2.81%

1.51% 5.47%

Cereals

Beverages, spirits and vinegar

Vegetables, fruit, nuts

preperations

Wood and Articles of wood

Raw hids and skins

Inorganic chemicals

Essential oils and resinoids

Preparations of cereals

Articles of apparel and clothing

Cocoa and cocoa preparations

Other

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Figure 55: Bolivia’s GSP+ preference utilisation (2011-2016)511

Figure 55: Bolivia’s GSP+ preference utilisation (2011-2016)Bolivia does not fully utilise the

preferences granted under the GSP+. As illustrated in, the average utilisation rate has

decreased since 2013. In 2016, t he utilisation rate was 94 per cent, a decrease by 1.7

percentage points compared t o 2015 and by 3.3 percentage points compared to 2013.

During the local workshop held in Bolivia in April 2017, it became evident that there is a

lack of awareness about GSP+ preferences and t he potential benefits of the arrangement

on Bolivia’s export growth. This limited awareness can partly explain why the

preferences are not fully utilised.

A more detailed analysis of the preference utilisation by Bolivia shows that utilisation in

general is relatively low among the top 10 GSP+ exports. As illustrated in Figure 56

below, HS Chapter 20 products (p reparations of vegetables, fruit, nuts or other parts of

plants) utilise GSP preferences the most of all the listed categories of products, which

511 Source: own calculations based on trade data supplied by the European Commission.

92,17%

95,52%

97,40%

95,78% 95,75%

94,03%

88%

90%

92%

94%

96%

98%

100%

0

20

40

60

80

100

120

2011 2012 2013 2014 2015 2016

IN MILLION EUR

GSP+ eligible exports to the EU Exports under GSP+ Utilisation rate

92,17%

95,52%

97,40%

95,78% 95,75%

94,03%

88%

90%

92%

94%

96%

98%

100%

0

20

40

60

80

100

120

2011 2012 2013 2014 2015 2016

IN MILLION EUR

GSP+ eligible exports to the EU Exports under GSP+ Utilisation rate