Due to the tsunami disaster, which occurred on 26 December 2004, the new GSP system should enter into force as quickly as possible. However, in the interest of a smooth transition from the current GSP scheme to the new GSP scheme it is appropriate to provide for a transitional period until 30 June 2005 until when preferences under the Regulation 2501/2001/EC shall continue to apply if they provide for a more favourable treatment to products than the new GSP scheme.
This new regime provides for better market access for all developing countries including the tsunami-hit countries. They benefit from the new regulation through the reinsertion of tariff preferences for several of their products as well as inclusion of new products in the GSP. Sri Lanka will also benefit by
inclusion in the special incentive arrangement for sustainable development and good governance. The entry into force of the regulation should therefore be advanced to 1 April 2005. The procedure for the special incentive arrangement for sustainable development and good governance has been changed accordingly by provisionally incorporating the countries that already qualify for the arrangement. These beneficiary countries, like any other developing countries, shall submit a request for a definitive selection as beneficiary by 31 May 2005. The Commission will assess all the requests. A final list of countries qualifying on 1 July 2005 will be published. Finally, due to the advanced entry into force of the new GSP it appears necessary to provide for a transition period from the current GSP system under
Council Regulation 2501/2001/EC to the new GSP scheme.
It should be noted that some technical details in the regulation have also been fine-tuned.