Finland supports duty-free access for imports from poorest countries

The EU's General Affairs Council in Brussels on Monday, 26 February, is scheduled to decide on extending the duty-free agreement to cover nearly all imports from the least-developed countries (LDCs). Promotion of duty-free market accession for developing countries is one of the key elements of Finnish development and trade policy objectives.

The chairman proposes that duty-free treatment be extended to all products from the least-developed countries excluding arms and ammunition. Duties on bananas, rice and sugar would be abolished during a transition period which would last until 2009.

Although nearly all of the trade between the EU and the LDCs takes place with zero tariffs through the standard generalised system of preferences (GSP) or the agreement between the EU and the African, Caribbean and Pacific countries (ACP), the extension of duty-free treatment is seen as an important political signal and an example to the other members of the World Trade Organisation.

The General Affairs Council will also discuss the situation in the Western Balkans and appoint a new chief for the European Union Monitoring Mission (EUMM). In its conclusions on the Western Balkans, the Council is expected to endorse the moderate policies of the Yugoslavian government during the wave of recent unrest, particularly in Kosovo and Southern Serbia.

The Middle Eeast peace process is also expected to feature in the meeting. The European Commission has proposed that the General Affairs Council would adopt plans to compile, in cooperation with the International Monetary Fund, a new and more tightly controlled budget for the Palestinian Authority, which would also be funded by the EU. Finland is in favour of the Commission's proposal but is also emphasising the fact that supervision of the aid should be conducted efficiently.

The General Affairs Council meeting will be attended by Finnish Foreign Minister Erkki Tuomioja and Foreign Trade Minister Kimmo Sasi.