EBA (Everything But Arms)

Beneficiaries

EBA is a special arrangement for Least Developed Countries (LDCs) as classified by the United Nations.

Duty reduction

This arrangement allows duty-free and quota-free access for all products originating in LDCs, except for arms and ammunition.

Graduation

Unlike Standard GSP and GSP+ beneficiary countries, LDCs remain eligible for EBA preferences if they benefit from other preferential arrangements with the EU, and the graduation mechanism for individual products does not apply.
LDCs leave the EBA arrangement when they graduate out of the LDC status as defined by the United Nations, but only after a three year transition period.

Enhanced Engagement

The EU has intensified its engagement with three EBA beneficiaries (Bangladesh, Cambodia, and Myanmar)
This enhanced engagement includes a systematic approach to address concerns with regard to fundamental human rights as well as labour rights
On 12 February 2020, the EU Commission decided to temporarily and partially withdraw part of the preferences from Cambodia due to continuous human rights abuses.

Beneficiaries

EBA is a special arrangement for Least Developed Countries (LDCs) as classified by the United Nations.
LDCs automatically benefit from the EBA preferences, which is among the most generous and predictable unilateral preference offers to LDCs in the world. Unlike the other arrangements, which under the GSP Regulation are provided until 2036, the EBA carries no expiry date.
EBA preferences can be withdrawn on the basis of serious and systematic violations of the principles laid down in the relevant international conventions in the field of human rights, labour rights, environment, climate and good governance.

Duty reduction

This arrangement allows duty-free and quota-free access for all products originating in LDCs, except for arms and ammunition.
Automatic safeguard provisions on textiles/clothing and ethanol do not apply to LDCs.

Graduation

Unlike Standard GSP and GSP+ beneficiary countries, LDCs remain eligible for EBA preferences if they benefit from other preferential arrangements with the EU, and the graduation mechanism for individual products does not apply.
LDCs leave the EBA arrangement when they graduate out of the LDC status as defined by the United Nations, but only after a three-year transition period. Early engagement with EBA beneficiaries scheduled for graduation supports countries in choosing how to develop their trade relationship with the EU.

Enhanced Engagement

To address shortcomings by beneficiary countries in the implementation of the principles laid down in the relevant conventions, the GSP foresees a systematic enhanced engagement.
The new GSP regulation comprises a reinforced engagement framework that prioritises structured dialogue and stakeholders’ involvement to address shortcomings before considering preference withdrawal, which remains a measure of last resort.
The EU has intensified its engagement with three EBA beneficiaries (Bangladesh, Cambodia, and Myanmar), albeit in different ways that take into account the specificities of the situation on the ground. Since 12 February 2020, preferences for Cambodia have been temporarily and partially withdrawn due to continuous human rights abuses.