Against the background of the unprecedented atrocities orchestrated against the Rohingya population, the European Commission (EC) has launched an inquiry to determine if Myanmar, which is a least developed country that is eligible to continue receiving Everything But Arms (EBA) privilege, diplomats of the EU, and countries belonging to the 28-member powerful bloc have said.
It appears that Myanmar is not complying with the requirements that are needed to continue enjoying the privilege, they told Dhaka Tribune.
However, they added that it is a very lengthy process to withdraw the privilege as so many formalities, and multiple parties are involved, and so many factors are to be taken into consideration.
“I understand an inquiry has started some months ago, and it will take a minimum of two years to strip the privilege, if a decision is taken in this regard,” EU Ambassador to Bangladesh Rensje Teerink told this correspondent.
The diplomats further said that before taking a decision to withdraw the privilege so many things are to be taken into consideration, including the poor people who will be affected.
On September 19, the European Parliament adopted a resolution on the Rohingya issue, reminding the government of Myanmar that it must fulfil its obligations, and commitments in relation to democratic principles and fundamental human rights, which are an essential component of the EBA scheme.
It also expected that the EC will launch an investigation in this regard, and regretted the fact that such an investigation is yet to begin.
The diplomats said that in fact an inquiry has already been underway.
The EBA scheme grants full duty free, and quota free access to the EU single market for all products except arms and armaments, according to the website of the EC.
A country is granted EBA status if it is listed as a Least Developed Country (LDC) by the UN Committee for Development Policy.
Countries do not need to apply to benefit from the EBA, and they are added or removed to the relevant list through a delegated regulation.
EBA preferences can be withdrawn in some exceptional circumstances, notably in case of serious, and systematic violation of principles laid down in fundamental human rights, and labour rights conventions.
Unlike under the Standard GSP, countries do not lose EBA status by entering into a Free Trade Agreement (FTA) with the EU. A 'graduation mechanism' for products also does not apply.
The EBA as established by the current Regulation (978/2012) has no expiry date. Myanmar was granted the privilege in 2011.
In 2018, the total trade between the two partners equaled €2.9 billion.
The EU ranked as the fourth biggest trade partner of Myanmar (after China, Thailand, and Singapore), accounting for 9% of the country’s total trade.
The EU imported goods worth €2,295 million from Myanmar. The key EU imports from Myanmar are dominated by garment (74%), and agricultural products.