As of June 21, a decision of the EU Council of Ministers excluded Belarus from the Generalized System of Preferences (GSP) over violations of workers rights, reported Data Minks, citing an EU spokesman. "The ILO (International Labor Organization) adopted its (June 15) assessment that Belarus has not acted to ensure the protection of certain key labor rights related to freedom of association in Belarus. Belarus' GSP trade preferences will be therefore withdrawn from 21 June 2007," read a statement on the European Union’s Web site, reported the news source.

In 2003 Belarusian independent trade unions submitted a complaint about the violations of trade union rights to the ILO. The EU Council of Ministers agreed in December 2006 to withdraw GSP privileges from Belarus if in six months Belarus failed to implement its ILO obligations.

Experts say Belarus could lose $100 million to $300 million annually once removed. In 2005 Belarusian exports to the EU reached some $7 billion, including almost $3 billion of exports with EU tariff preferences, which cover mostly Belarusian mineral fertilizers, textiles, clothes, and timber. The EU asserts that the removal of tariff preferences would not have a big impact on Belarus' exports to the EU, as the organization would reinstate the standard tariffs, which are only 3% higher than GSP levels. "The withdrawal will affect around 10% of Belarus exports," reported Data Minsk, citing an EU press release.

The Generalized System of Preferences, or GSP, is a formal system of exemption from the more general rules of the World Trade Organization (WTO).

This information was originally published June 18 and June 21, 2007 (www.data.minsk.by)