About the EU GSP

The EU’s Generalised Scheme of Preferences (GSP) was first introduced in 1971, with the EU playing a leading role in establishing a policy of unilateral trade preferences for poverty reduction and development that has since been mirrored by most industrialised economies. Over time, the GSP has emerged as a core pillar of the EU’s commitment to the role of trade in sustainable development.

The modern GSP categorises three tiers of tariff preferences and commitments based on a beneficiary country’s level of development. Under the general GSP arrangement, eligible beneficiaries receive duty reductions on 66% of tariff lines imported into the EU. The second arrangement, GSP+, provides the incentive for developing countries to benefit from zero duties on 66% of tariff lines contingent on implementation of core human rights, labour, governance, and other sustainable development conventions. Finally, the Everything but Arms (EBA) arrangement provides duty free access for imports from Least Developed Countries (LDCs), except weapons.

More than 200€ billion worth of goods were sold in the EU in 2018 under the GSP, benefitting EU importers and beneficiary country exporters alike.

Objectives

  • Poverty reduction 

contributing to poverty reduction by expanding exports from vulnerable countries

  • Sustainable development  

promoting sustainable development and good governance

 

About GSP - 3 things you should know about the EU’s GSP

3 things you should know about the EU’s GSP

  • 1) Developing countries are automatically granted GSP if they are classified below ‘upper middle income’ by the World Bank and do not have a preferential access to the EU market 
  • 2) Least-developed countries (LDCs) are automatically included in the EBA even if they have other preferential market access 
  • 3) The EU actively promotes sustainable development as all GSP beneficiaries have to respect 15 core conventions on human rights and labour rights  

Arrangements

Withdrawal mechanism: ensuring effective implementation of the EU’s sustainable development objective

Preferences may be temporarily withdrawn if one or more of the following cases applies to a beneficiary country

  • Serious and systematic violation of core human rights and labour rights conventions
  • Export goods are made by prison labour
  • Serious shortcomings in customs controls with regard to the export or transit of drugs
  • Failure to comply with international conventions on antiterrorism and money laundering
  • Serious and systematic unfair trading practices
  • Serious and systematic infringements of the objectives adopted by regional fishery organisations or any international arrangements to which the EU is a party.

Safeguard mechanism: Protecting European Producers

The safeguard mechanism prevents European producers from experiencing difficulties as a result from preferential imports under the GSP. 

Applying for safeguard measures 

  • The Commission can initiate safeguard measures independently, or 
  • the Commission initiates safeguard measures after a request by an EU Member State, any legal person or any association 

The Commission has the authority to immediately reinstate Common Customs Tariff duties in urgent cases. 

Specific safeguards 

  • Specific safeguards were introduced for textile, agriculture and fishery products 
  • The specific safeguards do not apply to EBA beneficiaries or countries with a share of imports into the EU of less than 6 per cent of all GSP covered imports.

 

 

A new GSP (2024 to 2034)

The European Commission has adopted a legislative proposal to renew the Generalised Scheme of Preferences (GSP) for the period 2024 to 2034 on 22 September 2021. The current GSP framework is based on Regulation (EU) No 978/2012 and is set to expire on 31 December 2023. Based on the insights gained through the Mid-term Evaluation of the GSP and the supporting external Study on the GSP Review, the European Commission proposed several adjustments to the current Regulation, reflecting changes in circumstances and challenges GSP beneficiary countries face. While the main characteristics of the scheme will be maintained, the European Commission aimed to tie the GSP Regulation even stronger to its objectives of reducing poverty, enhancing export opportunities, and incentivizing sustainable economic development. Another objective of the proposal is to better reflect the challenges of this decade and the EU’s policy priorities especially in the area of climate change and sustainability.

FIND OUT MORE HERE 

 

GSP Reports

As part of the monitoring and implementation efforts, the Commission produces different documents on the GSP, such as the biennial report to the European Parliament and to the Council, the Mid-Term Evaluation of the EU’s GSP, GSP country-focused fiches.

ACCESS ALL REPORTS HERE

 

Access2Markets

Access2Markets represents a useful tool for importers and exporters. The Commission had developed a one-stop platform to learn about taxes, procedures, formalities and requirements, rules of origin, export measures, and so on.

FIND OUT MORE HERE

 

 

 

The GSP Hub Project

The website was developed in the framework of the “Action on GSP Trade Preference” project, branded as “the GSP Hub”, implemented between 2020-2022. Through a continuous communication strategy, including this dedicated website, and a series of dialogue and engagement activities, the project has enabled relevant EU stakeholders to engage and exchange on GSP-related matters. At the same time, the tools developed, and information collected under the Project supported the European Commission’s monitoring activities in GSP+ countries and related activities in the other GSP beneficiary countries, as well as stakeholder awareness and contribution to monitoring.

The team organised Brussels-based events, engaging the full spectrum of GSP stakeholders, businesses, public officials, civil society and NGOs, international organisations as well as social partners (Stakeholder Forum, GSP Engagement Week, High-Level Industry Event).

Part of the objective of increasing awareness of and engagement on the EU’s GSP was to target GSP stakeholders in six selected beneficiary countries. The team successfully organised workshops, in cooperation with the local EU Delegation, in the following GSP-beneficiary countries: Mongolia, Uzbekistan, Lao PDR, Congo (Rep.), Senegal, Philippines.

READ MORE ABOUT THE EVENTS CARRIED OUT DURING THE GSP HUB PROJECT

 

To access all GSP-related resources, click here