In October 2012, the EU developed a new Generalized Scheme of Preferences (GSP) policy to become effective 1 January 2014. Under the new policy, Malaysia will no longer be the beneficiary of preferential treatment and will be excluded from the maximum 3.5% duty reduction on exports to the EU and Turkey in 2014

This action was in accordance with the EC’s desire to bolster developing countries by making it easier for them to do business within the EU. Malaysia was removed as a beneficiary after classification by the World Bank as a high or upper middle income economy for the most recent three years.

For European importers, this means a 3.5% increase in costs on all Malaysian gloves starting 1 January. While Malaysia has lost beneficiary status, Indonesia remains on the list of developing countries protected by the GSP and receives the full benefit of the new policy.