And finally, what does the Commission intend to do when the Drugs system of generalised preferences expires in 2004?

The system of generalised preferences has played a fundamental role in reducing poverty and improving the economies of the developing countries.

On the trade front, Burma no longer enjoys the preferential trade arrangements conferred by the system of generalised preferences.

Depending on the conclusions of this investigation, the Union will have to reconsider Belarus’s future access to the benefits of the system of generalised preferences.

I do not believe that either the United States or Russia deserve to be in the system of generalised preferences or have assistance tariffs.

Finally, countries benefit from the effects of having access to markets forming part of the system of generalised preferences and of the ‘everything but arms’ initiative.

The new system of generalised preferences, which offers preferential access to developing countries, was adopted on 27 June and will enter into force on 1 January 2006.

I am thinking here of the system of generalised preferences and the 'Everything but arms' system. In a sense, in establishing these systems, we have taken unilateral action to support developing countries.

Instead, it is one of the many means at our disposal for aiding development and goes hand in hand with preferential loans, free funds and the system of generalised preferences we are implementing in Europe.

One speaker mentioned Parliament's support for the new approach under the system of generalised preferences which, may I remind you, encourages beneficiary countries to exceed core labour standards using specific incentives granted to these countries by the Commission.

However, the European Union should work closely with the OSCE to organise and supervise the elections and increase humanitarian aid and financial support through the TACIS programme and the system of generalised preferences.

That is one of the reasons why, at the level of the system of generalised preferences, not only in the case of Colombia but also other Andean countries, we have allowed some supplementary facilities and we think that they are important.

From that point of view, the agreement we reached yesterday in the Council, by a qualified majority, on renewing the system of generalised preferences - an agreement that quite considerably strengthens the social conditions on which trade preferences depend - is good news.

In accordance with the information presented by the European trade union confederations, the Commission has also begun an investigation into alleged violations of freedom of association and of the right to collective negotiation within the framework of the Regulation on the system of generalised preferences.

Yet we are not starting from scratch, since the Union is already India's main trading partner, the main investor in India and the main destination for Indian investors, and India is also the main beneficiary of the system of generalised preferences.

Finally, the United States will have to review its system of generalised preferences this year and, thanks to the various lobbying methods at our disposal in Congress, we will see to it that, when it does, it will have our initiative engraved in its memory.

Africa must be a priority; also the desire for flexibility in the TRIPs Agreements and the 'everything but arms' initiative as well as the extension of the system of generalised preferences are aspects which we Europeans should be proud of and should value more.

The Andean Community has expressed less satisfaction with the agreement reached although they recognise that the formula obtained opens the door to a future association agreement which will replace the unilateral concessions they currently receive through the system of generalised preferences relating to the fight against drug trafficking.

Additional priorities cannot be financed out of the same resources. For instance, the Commission is adjusting the system of generalised preferences for countries such as Colombia or Costa Rica, and the Commission is not expected to suggest further budgetary cuts in the draft proposals.

With regard to internal strategy, beyond what was undertaken within the system of generalised preferences, the committee and its rapporteur want the European Union to develop other dimensions to its own action, in particular in the case of its trade and cooperation agreements and agreements on aid to investment.

For example, it insists on the fact that the Council, by adopting the above-mentioned Basic Principles on the Use of Restrictive Measures, has committed itself to doing so as part of a comprehensive approach, which should have room for tools such as human rights and democracy clauses, the system of generalised preferences and development aid.