The European Union’s new Generalised System of Preferences, which establishes tariff reductions or exemptions on products from a number of countries, will become effective on Wednesday (Jan. 1st). The listing of beneficiary countries has been narrowed down to focus only on the developing countries with the most pressing needs, for greatest impact on these countries.

Under the revised system, Brazil, Argentina, Uruguay, Venezuela, Cuba, Belarus, Russia, Kazakhstan, Gabon, Libya, Malaysia, and Palau will no longer be eligible to register their products for the benefit, since they have been classified by the World Bank as upper middle income countries. An additional eight countries rated as having high incomes are also going to be removed from the beneficiaries listing. Moreover, the tariff benefits will also be cut off from 34 countries that have trade agreements in place with the EU carrying other equivalent benefits.

The tariff preference system is designed to incentive exports from developing countries, and the list of beneficiary countries is revised regularly. The new listing was announced in October, but the revisions began in 2010.