A joint report from the European Commission and the High Representative, published on 16 July 2026, states that the EU's Generalised Scheme of Preferences (GSP) covered 65 developing countries from 2023 to 2025, with beneficiaries saving an estimated EUR 5 billion in tariffs in 2024. The report, covering the period 2023-2025, notes that EUR 59 billion in EU imports entered under GSP in 2024, including EUR 30 billion under the Everything But Arms (EBA) arrangement, EUR 11.5 billion under GSP+, and EUR 17 billion under Standard GSP. Top beneficiaries in 2024 were Bangladesh (EUR 19 billion, EBA), India (EUR 11.7 billion, Standard GSP), and Pakistan (EUR 7.1 billion, GSP+). The report also outlines graduations: Indonesia leaves GSP as of 1 January 2027, Kenya's GSP is replaced by an Economic Partnership Agreement as of 1 January 2027, Bhutan transitions to Standard GSP as of 1 January 2028, and São Tomé and Príncipe as of 1 January 2029.
The report details the new GSP Regulation, adopted on 17 June 2026, which will apply from 1 January 2027. The regulation adds five new international conventions, replaces the Kyoto Protocol with the Paris Climate Agreement, and introduces withdrawal grounds for violations of environmental, climate, and good governance standards, as well as for readmission failures. Current GSP+ beneficiaries have a transitional period until the end of 2028. The report notes that all eight GSP+ beneficiaries maintained full ratification of 27 conventions, with positive developments in human rights, labour, environment, and anti-corruption, but challenges remain in areas such as judicial independence, gender-based violence, and discrimination. Regarding safeguards, general safeguards on Indica rice from Cambodia and Myanmar were re-imposed in 2024, and special agricultural safeguards on ethanol from Pakistan were imposed in 2025.
The report highlights that the GSP remains a key EU trade tool for development, with the new regulation strengthening sustainability and enforcement from 2027, while several major beneficiaries are set to graduate. The report is addressed to the European Parliament and the Council, which will consider the findings and the upcoming implementation of the new regulation.
Developing country beneficiaries will face stricter sustainability conditions under the new regulation but continue to benefit from tariff savings; EU importers and consumers may see higher costs for products from graduated countries; EU producers in sectors like rice and ethanol gain from renewed safeguard measures; and civil society groups may welcome stronger environmental and governance clauses but could push for faster enforcement.