The European Commission and the European External Action Service (EEAS) published a joint report on 16 July 2026 confirming that the EU's Generalised Scheme of Preferences (GSP) continues to drive economic growth and sustainable development in beneficiary countries, with €60 billion in imports under the scheme in 2024 and an estimated €5 billion in tariff savings for partner countries. The report, covering 2023-2025, is the last under the current GSP regulation and marks the transition to a new regime for 2027-2036 adopted on 17 June 2026.
The GSP, the EU's main unilateral trade tool for low- and lower-middle income countries, offers reduced or zero import duties on products from 65 countries representing over 3 billion people. The report details that in 2024, the largest beneficiaries were Bangladesh, India, and Pakistan, with clothing accounting for 59% of all GSP-preference trade. Least-developed countries received over €3 billion in savings under the Everything But Arms (EBA) arrangement. Beyond trade, the report highlights the GSP's role as an incentive for sustainability and good governance, noting progress in human rights legislation, labour rights, and environmental protection among GSP+ beneficiaries such as Bolivia, Cabo Verde, Kyrgyzstan, Mongolia, Pakistan, the Philippines, Sri Lanka, and Uzbekistan. However, it acknowledges persistent challenges in implementation, including insufficient judicial independence, limited access to remedy for human rights abuses, and uneven labour rights enforcement due to capacity constraints in inspectorates.
The report is accompanied by nine country-specific staff working documents assessing GSP+ and enhanced-engagement EBA countries (Bangladesh, Cambodia, Myanmar). Looking ahead, the EU's new GSP Regulation, adopted on 17 June 2026 and published in the Official Journal on 22 June 2026, will apply from 1 January 2027, with reinforced sustainability and transparency requirements. The report signals that while several beneficiaries are on track to graduate from least-developed country status, the GSP will continue to support them through transitional periods. The findings underscore the trade-off between market access benefits and the need for stronger enforcement of international standards, impacting EU importers and consumers who gain from lower prices, while beneficiary countries face pressure to improve governance and labour conditions to maintain preferences.