BELARUS NEWS AND ANALYSIS

DATE:

Thursday, 14 July 2005

EU against Belarus trade?

Written by Brussels journalist David Ferguson

Belarus could lose up to ?120 million if the European Union introduces sanctions after starting a six-month investigation at the end of this month. "We know how much it would cost. Still, the problem is not so much the cost, but the precedent of the EU taking such an unwarranted decision," said Deputy Foreign Minister Aleksander Mikhnyevich.

On Tuesday, Mikhnyevich told Belarus journalists that EU sanctions are unlikely: "We think, and this is also understood in the West, that economic sanctions are counterproductive both for normal people in Belarus and for the European Union," said Mikhnyevich. Since 1994 Belarus has enjoyed preferential tariffs for trade with the EU under the GPS system.

According to Eurostat, Belarus currently exports and imports around ?2.6 billion from the EU. Minsk, however, talks of Belarus-EU trade being positive for Belarus to the tune of around ?830 million. Among the EU member-states, Germany, Great Britain, the Netherlands and Italy are Belarus' largest trade partners with exports to the EU running at over 46 per cent of the total amount. Trade turnover between Russia and Belarus reached a record ?14.8 million last year.

Speaking last week in Strasbourg, EU External Relations Commissioner Benita Ferrero-Waldner. suggested an investigation might "...ultimately result in the withdrawal of Belarus' access to the benefits of the GSP, the Generalised System of Preferences". The system grants products imported from beneficiary countries, including Belarus, either duty-free access or tariff reductions.

Ferrero-Waldner has long been critical of Belarus' human rights record: "Our grave concerns about trade union rights in Belarus have led to an investigation into alleged violations of freedom of association and also the right to collective bargaining, as defined in the ILO Conventions, especially within the framework of the GSP," said Ferrero-Waldner.

European Commission officials indicate that 23 out of the 25 EU Member States now favour withdrawing preferential status from Belarus if there is no improvement in democratic and trade union rights. Neighbouring Poland and Lithuania vigorously oppose increased restrictions on trade with Belarus. The official procedure of investigation should begin at the end of July or beginning of August and lasts six months.

Source:

http://euro-reporters.com/index.php?option=com_content&task=view&id=131&Itemid=1