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Questions & Answers on the new EU Generalised Scheme of Preferences

The EU's Generalised Scheme of Preferences (GSP) supports developing countries by granting preferential access to the EU market while promoting sustainable development, human rights, labour rights, environmental protection, and good governance.

Trade topics
  • Generalised Scheme of Preferences

The new GSP strengthens sustainability conditions, improves monitoring and safeguards, and better aligns the GSP trade preferences with current sustainability, migration, and economic challenges.

This Q&A outlines the main features of the revised GSP and explains what will change in practice when it applies from 1 January 2027.

What is the EU's Generalised Scheme of Preferences?

The GSP is the EU's flagship trade and development instrument – a long-term, predicable, and reliable framework. Through GSP, the EU provides some of the most generous unilateral preferences to 65 partner countries and more than three billion people. 

GSP unilaterally grants reduced or zero tariffs on two thirds of eligible developing countries' exports to the EU (or all except arms for Least Developed Countries) to support sustainable growth, poverty reduction, and political and economic stability.  

Key points:

  • Applies to 65 developing and least developed countries, more than half of which are in Africa.
  • Includes three arrangements:
    • Standard GSP:  zero or reduced tariffs on a broad range of goods for lower-middle-income countries and below;
    • GSP+: zero tariffs on a wider list of products for Standard GSP countries that ratify and implement key international conventions, and;
    • Everything But Arms (EBA): duty-free and quota-free access for all goods from least developed countries (except arms). 

Example: 

Mozambique, an LDC according to the UN, automatically benefits from the EBA. A fish exporter in Mozambique can export to the EU with no tariffs or quotas. 

What are the main objectives of the new GSP Regulation?

The new GSP maintains the key objectives of poverty reduction through trade and sustainable development. The EU will continue to provide generous unilateral preferences with wide country and product coverage, in particular to the Least Developed Countries through the Everything But Arms (EBA) duty-free, quota-free arrangement.

In the new GSP trade preferences are more strongly linked to sustainable development, including human rights, labour rights, climate and environment, and good governance, and aligned with the EU external action, while responding to the needs of EU producers. 

Key points:

  • Maintains the successful structure, product coverage, and main features of the current EU GSP;
  • Strengthens conditionality on human rights, labour rights, environment, and climate, and good governance;
  • Enhances mechanisms available to protect EU industry in case of need, and;
  • Improves monitoring and transparency. 

What are the key changes compared to the existing GSP scheme?

Compared to the existing GSP scheme, the new GSP introduces clearer and stronger implementation tools, including stronger and wider sustainability conditions, and the new possibility of urgent withdrawal of preferences, in case of grave violations. 

The new GSP also updates safeguards to protect EU industry and emphasises transparency and engagement mechanisms, in particular in GSP+ monitoring. 

Key points:

  • Updated list of relevant international conventions increased to 32;
  • Requirement not to violate the principles of environmental, climate and good governance conditionalities now applies to all beneficiaries;
  • Enhanced engagement and monitoring processes are clearly outlined;  countries requesting GSP+ status will need to submit a plan of action for the implementation of the 32 conventions;
  • A link with lack of cooperation on readmission of the beneficiary country's nationals added as a potential ground for preference withdrawal;
  • Introduction of a new automatic rice safeguard mechanism specifically designed to protect EU producers; and simplified rules for general safeguards, and;
  • Stronger special surveillance for import surges of agricultural products into the EU can now lead to suspension of preferences. 

How does the new framework strengthen sustainable development conditions and requirements?

The updated GSP updates and reinforces the scheme’s support for international standards and has stronger environment and climate and good governance dimensions. 

Key points:

  • Widens the scope of the requirement to not violate the principles of international conventions applicable to all beneficiary countries beyond human rights and labour rights to environmental and climate agreements or conventions and good governance (anti-corruption and drug control).
  • Expands by five the list of international conventions that GSP+ beneficiaries must ratify and effectively implement and replaces the Kyoto Protocol with the Paris Agreement; GSP+ beneficiaries will now need to accompany their application with a forward-looking plan of action for the implementation of these conventions;
  • Introduces an urgent withdrawal procedure in exceptional cases of grave violations requiring a swifter action, and;
  • Clearly outlines monitoring and engagement, as well as civil society involvement and transparency provisions, better aligning the GSP+ monitoring cycle with UN cycles. 

Example:

A standard GSP beneficiary is granted preferences automatically, with no need to apply, but can lose preferences in case of serious and systematic violations of the principles of the 32 GSP-relevant conventions (negative conditionality). While before this was only applicable to human rights and labour rights conventions, it now extends, for example, to violations of the Convention on International Trade in Endangered Species (CITES). 

Which are the new GSP-relevant conventions?

The new GSP is updated with five widely ratified conventions:

  • The Optional Protocol to the Convention on the Rights of the Child on the Involvement of Children in Armed Conflict (2000);
  • The Convention on the Rights of Persons with Disabilities (2007);
  • The ILO Convention on Labour Inspection No. 81 (1947);
  • The ILO Convention on Tripartite Consultations No. 144 (1976), and;
  • The United Nations Convention against Transnational Organised Crime (2000).

In addition, the Paris Agreement on Climate Change (2015) will replace the Kyoto Protocol.

What is readmission conditionality, and how does it work?

In the new GSP, tariff preferences can be linked to a beneficiary country's cooperation with the EU when it comes to readmitting its own nationals irregularly present in the EU. As with all GSP conditions, the emphasis is on dialogue and engagement with a view to improved compliance; withdrawal of preferences remains a measure of last resort.

Key points:

  • Applicable only after comprehensive EU engagement foreseen in the Visa Code Regulation has been unsuccessful;
  • Introduces a structured evaluation and engagement process before any withdrawal of preferences, and;
  • Introduction of the readmission conditionality for Least Developed Countries two years later than for the other GSP countries.

Example: 

A GSP beneficiary country does not cooperate sufficiently with the EU on readmitting its own nationals irregularly present in the EU territory. The European Commission will engage with the country’s authorities in order to improve such cooperation in line with the Visa Code procedures. If insufficient cooperation continues, the European Commission may also engage with that country in the context of the implementation of the GSP Regulation.  If this further engagement does not sufficiently improve the country’s cooperation, the European Commission may consider withdrawing GSP preferences on the basis of the readmission conditionality.

Are there any changes to the countries that can benefit from the preferences?

The new GSP Regulation does not change the list of beneficiary countries. 

Countries which have successfully completed their transition from centralised to market economies and are today powerful economies with a strong position in international trade should not be considered to be developing countries in the context of the GSP, and were therefore removed from the list of eligible countries.

Will existing GSP+ beneficiaries lose their preferences?

Current GSP+ beneficiaries will need to reapply to continue benefitting from GSP+ because of new GSP+ admission rules, including the six new conventions that a country needs to ratify and the requirement to submit a plan of action for their implementation.  

All GSP+ beneficiaries have a two-years grace period (until the end of 2028) to prepare and submit their GSP+ re-applications. They will continue enjoying GSP+ preferences during the transitional period.

What is the procedure for reapplication? Will the EU assist applicant countries?

The exact process for GSP+ (re)application will be outlined in a procedural regulation after the publication of the GSP Regulation in the Official Journal.  The European Commission, External Action Service, and EU Delegations will be ready to support each beneficiary country in the process. 

What happens to countries graduating out of least-developed status?

The new GSP does not change the country graduation process. 

The new GSP framework continues to enable smoother transitions for countries graduating from LDC status by providing a generous transitional period (three years) and offering the possibility to retain generous market access through GSP+, if they meet the GSP+ conditions and commit to broader sustainability standards. The new GSP simplifies the economic criteria to be met to access GSP+, thus facilitating the transition from EBA to GSP+.

Key points:

  • Avoids 'cliff-edge' loss of tariff benefits, and;
  • Encourages sustained development trajectories.

Example:

Three LDCs are scheduled to graduate from UN LDC status in 2026: Bangladesh, Lao PDR, and Nepal. All three countries will continue benefitting for three more years from EBA preferences under the new GSP, at least until the end of 2029. They all have the opportunity to apply for GSP+.

What happens to countries that have in the meantime concluded free trade agreements with the EU?

The new GSP does not change the country graduation process. 

Standard GSP and GSP+ beneficiaries that conclude a Free Trade Agreement (FTA) with the EU graduate out of the scheme, as they have access to better market access arrangements. They will continue benefiting for two more years from the start of application of the FTA,  to avoid preference gaps. 

EBA countries continue to benefit from EBA preferences, even if an FTA is in place. 

Example: 

India concluded an FTA with the EU in 2026. India will continue to benefit from standard GSP preference for two more years after the FTA starts to apply, following its ratification.

Are there any changes to product coverage?

No, the products for which tariffs are reduced or removed under the EU GSP remain the same. 

There are changes in the classification as sensitive or non-sensitive products of a small number of goods and, therefore, in the duty reduction available for them for standard GSP beneficiaries: e.g. PET becomes a sensitive product and some other products become non-sensitive (such as synthetic organic dyes, aniline derivatives, lysine and esters, and diazo compounds).

Are there any changes to rules of origin?

The GSP regulation continues to rely on the rules contained in the Union Custom Code as to the conditions and the process relevant for the rules of origin. There are some clarifications in the new GSP Regulation regarding the conditions to grant certain forms of cumulation. 

The new GSP further clarifies that cross-regional and extended cumulation of product origin should be granted, provided that the applicant beneficiary country brings sufficient evidence that:

  1. Cumulation responds to its development, financing and trade needs, thus leading, amongst others, to economic growth, elimination of poverty, diversification of exports and industrialisation;
  2. it cannot comply with the applicable rules of origin without such cumulation, and;
  3. it does not impact negatively the situation of other countries: especially of EBA beneficiary countries. 

Therefore, when assessing whether granting cumulation responds to the requesting country’s development, financing and trade needs, the Commission should consider the beneficiary country’s dependency on the supplying country as well as future perspectives with regard to the products in question.

How are the EU's economic interests secured?

The EU GSP is one of the key trade instruments to assist developing countries. At the same time, the GSP Regulation includes mechanisms to respond to the needs of EU industry in case of serious issues. 

The EU and EU industry have diverse commercial interests related to GSP. EU consumers and EU industries benefit from the diversification of EU imports from GSP beneficiary countries and the cheaper inputs the GSP duty removal or reductions provide, while encouraging sustainable production and a predictable business environment.

For products that are sensitive for the EU, GSP benefits are provided only to the Least Developed Countries (LDCs), or to GSP+ beneficiaries which have taken additional sustainability commitments and undergo extensive monitoring. 

Some EU industries may find themselves harmed by imports from GSP beneficiaries. In cases of difficulty, the GSP Regulation provides a number of instruments to address the situation, including general and product-specific safeguards and surveillance.  

Example: 

Improvements in the new GSP to the existing safeguards mechanisms include simplifying the general safeguards to make it easier for SMEs and agricultural producers to provide data that provide a starting point for EU measures. 

How does the new GSP respond to agricultural sensitivities?

The EU is committed to supporting beneficiaries of the Generalised Scheme of Preferences, and Least Developed Countries (LDCs) in particular, while preserving the interests of EU producers and ensuring robust protection for sensitive EU agricultural sectors when they are exposed to import competition. 

Given the importance of agriculture for the EU, the GSP Regulation provides several specific instruments that contribute to ensuring the integrity of the domestic agricultural market. 

These safeguard mechanisms have been updated and extended in the new GSP Regulation, making the general safeguards instrument more easily accessible and agile by reducing the list of indicators to be considered, streamlining the special safeguards for agriculture by clarifying procedures, introducing the possibility to suspend preferences for agricultural products under surveillance, and creating a rice-specific automatic safeguard.

Example: 

The special surveillance mechanism exists in the current GSP Regulation to provide regular information on imports of certain agricultural products from GSP beneficiaries and enables expedited Commission action when serious market disturbances arise from import surges of sensitive agricultural products. The new GSP allows for a suspension of preferences from a country based on this surveillance data, following a simplified assessment. 

Surveillance may flag a sudden significant increase in imports of cut flowers or tomato preparations from one beneficiary, prompting a deeper review and possibly safeguard measures.

What is the new rice safeguard mechanism?

A  new, automatic safeguard targeting rice imports was introduced to protect EU producers from significant import surges that could disrupt the domestic market. 

Key points:

  •  If rice imports from a beneficiary country exceed historical averages, preferences are immediately suspended and MFN tariffs are reinstated for one year beyond a certain volume of imports;
  • In the following year, a tariff-rate quota (TRQ) applies to import volumes from that country, and;
  • Applies to all beneficiaries. 

Example: 

If rice imports from a beneficiary rise sharply above the average of their past imports over 10 years, the EU will suspend preferential rates for the rest of the year and introduce a TRQ for the following year to prevent market disruption. 

What does the new GSP mean for EU producers and trade partners?

The new GSP maintains the key features of current GSP, including product and country coverage, in line with its development objectives while increasing the effectiveness of the mechanisms aimed at avoiding harm to European producers. 

Key points:

  • Product coverage remains stable and predictable;
  • tailored safeguards are available for products that may harm EU producers (e.g., rice, textiles);
  • Market surveillance helps avoiding import shocks, and;
  • Preferential access remains a strong incentive for reforms in partner countries.

When will the new GSP rules apply?

Pending the conclusion of the legislative process, the new rules shall apply from 1 January 2027.

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