Belarus may lose its trade concessions with EU.

EU Council experts’ working group can make a decision about stoppage of General Preferences System concerning Belarus in September 2006. The reason is not carrying-out of ILO requirements. This can lead Belarus to not only a waste of millions of dollars but to more dependence from the Russian Federation.  (23-JUN-06)

Source www.euramost.org

Possible decision.
On the 19th of June during General Preferences System (GPS) committee proceedings in Brussels, the experts of EU country-members have considered the Belarusian situation. It is planned that on the next proceedings on the 28th of June there will be voting on the question of stoppage of General Preferences System  for Belarus. Then European commission will present its decision to EU Council. EU Council decision should come into effect in 6 months. Thus, the decision about cancellation of trade concessions can come into force at the beginning of 2007. 

Systematical violations of freedom of associations.
Special commission made an investigation on adherence of ILO conventions by the Belarusian government since 2003. Repeated appeals of Belarusian trade unions became the reason of beginning   this investigation.
“We will undoubtedly cancel trade concessions for the countries where  labor standards are systematically defied”- declared Peter Mandelson, European Labor  Commissioner in 2005  -“ International Confederation of Free Trade – Unions, International trade-unions and ILO have  testified systematical violations of freedom of associations in Belarus. As the result I am bound to recommend to Commission and state-members to temporarily deprive this country of its trade concessions, afforded by GPS”.
Belarusian government was given 6 months to bring legislation into compliance with international obligations, and 8 more months to realize ILO recommendations. None of these requests were discharged.

What can Belarus lose?
GPS, confirmed in 1971, is a system of customs privileges which are given to developing countries by developed countries. This trade privilege, that is 10% abatement in custom fees, is used by countries respecting HR, including- trade-unions rights.  In the case of trade concessions stoppage, Belarus will lose about €300 million annually.
Belarus was also brought into a special paragraph of ILO report. The Belarusian government has a last possibility to implement Investigation Commission recommendations during 5 months, till November 2007. In the event of default- Belarus can be excludable from ILO.