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Since 1995 the EU has incorporated a human rights clause as an essential
element in all framework agreements with third countries, stipulating that
respect for human rights and democratic principles should form the basis of
the agreement. In 2003, all EU member states agreed a position on the
inclusion of such human rights clauses in all EU±third country agreements,
except sector-specific agreements such as steel and fisheries. This position
was subsequently reinforced in 2009 in the ³Common Approach on t he Use of
Political Clauses´. To date, 45 framework agreements containing such a
clause have been agreed with more than 120 countries. The clauses provide
a peg for dialogue, allowing the EU to engage positively with the third country
on human rights. In extreme circumstances, the agreement can also be
suspended in the event of a serious breach of the clause .

Since 1995, negative measures have been implemented under the human
rights clause framework agreement on 22 occasions, most frequently in
response to a coup d¶état, for example in the Central African Republic, Fiji and
Niger, but also for flawed electoral processes such as in Haiti and Togo, and
for violations of human rights, as in Liberia and Zimbabwe .


 


 


The EU is the world¶s largest trading bloc and the combined national output of
the 27 EU member states accounts for 25% of world GDP. The EU¶s
founding documents state that the EU¶s commercial policy will be conducted
in line with the overriding principle s of respect for human rights, democracy
and the rule of law. Trade agreements with third countries therefore provide
important leverage for the EU to advance global respect for human rights .

The eight core International Labour Organization conventions, on child labour,

forced labour, non-discrimination and basic trade union rights, are covered in
the sustainable development chapter of the EU¶s free trade agreements with
third countries. The EU encourages free trade agreement partner countries to
engage in constructive dialogue and cooperation to strengthen compliance
with domestic and international labour standards. The free trade agreements
also include specific mechanisms and structures to monitor and implement
the human rights provisions, which may involve NGOs and independent
experts.

In May the European Commission concluded negotiations for the EU Multi

Party Trade Agreement with h
 and  . During the negotiations, the
UK led efforts within the EU to ensure that a legally binding and robust human
rights clause was included in the text of the agreement. The agreement will
go through legal scrutiny in 2011 .








The Generalised System of Preferences (GSP) is one of the most important
instruments available to the EU in linking human rights with trade. There are
three tiers of benefits: the standard GSP, the special arrangements for
sustainable development and good governance (GSP+) and the Everything
But Arms (EBA) initiative.

Under the GSP Regulation, the Europe an Commission may launch an

investigation if there is evidence of grave and systematic violations of the
international human rights and labour rights conventions cited in the GSP
Regulation. If the conventions are judged to have been breached, all GSP
arrangements may be temporally withdrawn. Countries where privileges have
been withdrawn are encouraged to improve their human rights situation, with
a view to renewing the arrangements. To date, standard GSP has been
withdrawn on only two occasions: in  
 in 1997 due to the systematic use
of forced labour; and in   in 2007 for the widespread violation of trade
union rights.

GSP+ offers additional incentive arrangements to developing countries which

have ratified and effectively implemented 27 core international conventions on
human rights, labour rights, environment and good governance principles and
allows them to export goods to the EU at preferential tariff rates. There are
currently 15 GSP+ beneficiary countries. GSP+ privileges can be withdrawn
in the event of a serious breach of human rights in the beneficiary country, as
well as if the beneficiary country¶s domestic legislation is amended in such a
way that it no longer incorporates the obli gations of the relevant international
conventions.


 had been a beneficiary of GSP+ since 2006. In October 2008, the
European Commission initiated an investigation into Sri Lanka¶s
implementation of three international conventions listed in the G SP
Regulation: the International Covenant on Civil and Political Rights; the
Convention against Torture; and the Convention on the Rights of the Child. In
October 2009, the European Commission concluded that Sri Lanka had failed
to implement effectively the obligations arising from the three conventions
under investigation during the period covered by the investigation .

On 15 February, the EU decided to withdraw GSP+ preferences from Sri

Lanka, with the decision due to enter into force in August. Between February
and August, the EU encouraged Sri Lanka to address the concerns
highlighted in the Commission¶s report. As insufficient improvements were
made, GSP+ arrangements were withdrawn on 15 August.

In order for the GSP+ scheme to function effectively a s an incentive tool, it is

important that there is a clear and common understanding on what effective
implementation of the international conventions means. The EU is currently
conducting a review of the GSP Regulation. As part of the review, we will
work closely with the Commission, the European Parliament and other
member states to clarify further the standards that the EU expects from its
partners, as well as the institutional arrangements for entering, leaving and
monitoring the scheme.