EU trade relations with developing countries continue to create sustainable economic growth

This article is brought to you in association with the European Commission.

Today, the European Commission and the High Representative for the Common Foreign and Security Policy published a new joint report on the implementation of the Generalised Scheme of Preferences (GSP) – the EU’s main trade policy tool to support developing countries’ exports to the bloc. The report confirms that the system continues contributing to economic progress and sustainable development in beneficiary countries. The GSP, which unilaterally offers access to EU markets with low or no duties, remains a source of stability and predictability in times of geopolitical volatility.

The report covers the implementation and impact of the GSP over 2023-2025 through its three arrangements (Standard GSP, GSP+ and Everything But Arms (EBA)). In 2024, the EU imported almost €60 billion worth of goods under GSP preferences, benefitting partner countries as well as EU importers and consumers. GSP beneficiary countries received preferential tariff treatment resulting in an estimated €5 billion savings. The largest category of beneficiaries remained the least-developed countries, benefiting from more than €3 billion of the total under the Everything But Arms (EBA) instrument. Overall, Bangladesh, India, and Pakistan were the largest beneficiaries of the scheme and clothing was the top sector, accounting for 59 % of all trade using GSP preferences.

GSP supporting sustainability and good governance

Beyond its trade and economic benefits, GSP remains an attractive and effective incentive for sustainable development in beneficiary countries in the areas of human rights, labour rights, environmental, and climate-related issues, rule of law, drug control and anti-corruption. The EU’s monitoring and engagement under GSP plays a key role in supporting their advancement. In addition, EU partnership projects can help to address some of these challenges through cooperation and country-specific measures.

The report is accompanied by nine country-specific Staff Working Documents (SWDs) for each of the current eight GSP+ beneficiaries (Bolivia, Cabo Verde, Kyrgyzstan, Mongolia, Pakistan, The Philippines, Sri Lanka, and Uzbekistan) and one for the three EBA countries under enhanced engagement (Bangladesh, Cambodia and Myanmar).

GSP beneficiaries continue, in general, to make progress towards sustainable development and respect of the international principles and standards that are part of the GSP conditionality. Many current GSP+ beneficiaries strengthened human rights legislation and institutional arrangements, and most GSP+ beneficiaries showed progress with respect to labour rights during the period covered by the report. Many GSP+ beneficiaries also remained committed to climate and environmental protection, strengthening biodiversity and protected-area legislation. Good governance with regard to drugs control and anti-corruption improved in a number of countries.

However, challenges with regard to the implementation of GSP+ commitments remain. These relate in particular to human rights including insufficient judicial independence and limited access to remedy and accountability for violations and abuses. Similarly, with respect to labour rights, implementation and enforcement remain uneven, and labour inspectorates often face capacity constraints.

Looking ahead, most GSP beneficiary countries’ economic outlook is expected to continue improving, with several of them on track to graduate out of UN least-developed country status. GSP will nevertheless remain important as it will accompany graduating beneficiaries through transitional periods.

Background

The GSP is the EU’s main unilateral trade policy to support low- and lower-middle income countries in poverty reduction, economic growth and sustainable development. It lowers or removes import duties on products imported to the EU covering 65 beneficiary countries which equals over 3 billion people worldwide. The least developed countries (LDCs) benefit from duty free, quota free access. Such preferential access to the EU market is conditional on the respect of international standards on human rights, labour rights, environment and climate, and good governance with regard to drugs control and anti-corruption.

The report reflects the Commission’s and the European External Action Service’s (EEAS) engagement with beneficiaries’ authorities, civil society, social partners and business communities, including through monitoring missions to GSP+ beneficiaries, as well as enhanced engagement with some key EBA beneficiaries.

This is the last report under the current GSP Regulation. It marks the transition to the new GSP Regulation with reinforced sustainability and transparency requirements. Regular monitoring and reporting remain a key part of GSP implementation as confirmed in the new GSP Regulation. The EU’s new GSP Regulation for 2027-2036 was adopted on 17 June 2026 and published in the Official Journal on 22 June 2026. It will apply as of 1 January 2027.

For more information

Report on the Generalised Scheme of Preferences covering the period 2023-2025

Questions and answers

Factsheet on the report

Staff Working Documents assessments for Bolivia Cabo Verde, Kyrgyzstan, Mongolia, Pakistan, The Philippines, Uzbekistan, Sri Lanka, EBA Bangladesh Cambodia Myanmar

Country factsheets for EBA beneficiaries Bangladesh, Cambodia and Myanmar, and the GSP+ beneficiary countries under the reporting period: Bolivia, Cabo Verde, Kyrgyzstan, Mongolia, Pakistan, the Philippines, Sri Lanka, Uzbekistan

GSP Website

GSP Hub