Afghanistan
As a least-developed country (LDC), Afghanistan is a beneficiary of the EU's "Everything but Arms" (EBA) arrangement. The World Bank considers Afghanistan a low-income economy with a per-capita income of $416 in 2023. EU imports from Afghanistan amounted to about €33.6 million in 2023. As most of Afghanistan's exports enter the EU duty-free under the EU's normal tariff regime, the scope for preferential imports is limited - these reached €9.8 million in 2023.
What is the EBA?
The EBA arrangement covers all LDCs as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products originating in LDCs except for arms and ammunition. Unlike beneficiaries of the Standard GSP and GSP+, LDCs are not excluded from the scheme if they benefit from other preferential arrangements or agreements with the EU.
At a glance: EU preferential imports from EBA beneficiary countries (2023, € million)
41.5M (2023)
Population
Presidential Islamic Republic
Government
2.7% (2023)
GDP Growth
-7.7% (2023)
Inflation
$ 17.2B (2023)
GDP
Facts about Afghanistan's economy
Fragile Country
Afghanistan is a landlocked economy with mountainous terrain and one of the poorest countries in the world. Years of conflict and the persisting political instability have left the economy highly dependent on international aid.
Export Products
Afghanistan's main export commodities originate from the agricultural sector and include dried grapes, figs, almonds, pistachios, and other nuts, saffron and onions. Afghanistan also exports lac, precious/semi-precious stones and medical plants.
Trade Partners
Afghanistan's most important trading partners are Iran, China and Pakistan. India and Pakistan are the most important export markets, while most imports originate from Iran, China, and Pakistan.
Economic Structure
Agriculture plays traditionally an important role for the Afghan economy, it employs the majority of the population and supplies the manufacturing sector with important inputs, such as raw cotton. The cotton textile industry is among the most important industrial sectors, together with cement, sugar, vegetable oil, soap, and shoes.
Usage of EBA Preferences
About 43% of overall imports from Afghanistan make use of EBA preferences. The preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports, currently stands at 68%.
Trade with the EU
Total trade with the EU amounted to €148 million in 2023, 3.6% of Afghanistan's total trade. The EU is thus Afghanistan's 7th-largest trading partner.
Afghanistan and the EU
Imports from Afghanistan by product section (2023, € million)
Imports from Afghanistan over time (€ million)
AFGHANISTAN AND THE EU GSP
Economic Impact
43%
Share of Afghanistan's exports to the EU eligible for EBA preferences in 2023.
68%
Afghanistan's preference utilisation rate in 2023.
86%
Share of zero-duty imports from Afghanistan.
Preference utilisation and export diversification
EU imports from Afghanistan (€ million)
Preference utilisation (%) vs. total eligible imports (in € million)
Imports from Afghanistan increased until 2019 but since then have decreased again; similarly, EBA eligible imports decreased from 2021 to 2023. On the other hand, while Afghanistan’s preference utilisation rate shows some fluctuations, it follows an overall upward trend. Further potential to increase the use of preferences exists in some product sections. While the preference utilisation rate of the two largest sections, fruits and vegetables and textiles, was above average in 2023, the one for spices, the third largest section, stood at only 35%.
The largest product sections under EBA (€ million, 2023)
Fruit an vegetables are traditionally Afghanistan's leading product section under the EBA, both in terms of eligible and preferential imports. In 2022, the were briefly replace by textiles (esp. carpets), but regained their leading position in 2023. They are also the product section with one of the highest preference utilisation rates (83% in 2023). Other important products are food preparations and apparel, although the latter and most other product sections have low preference utilisation rates.
SUSTAINABLE DEVELOPMENT
As a beneficiary of the EBA scheme, Afghanistan's preferential access to the EU market is not bound to the ratification of international conventions. Nonetheless, Afghanistan has a good level of ratification of international conventions. The country has ratified all 7 fundamental conventions on human rights and 5 of the 8 core conventions on labour standards. In addition, Afghanistan 8 conventions on environmental protection and 4 good governance conventions.
Core international conventions on human rights and labour standards
Ratified
- Convention on the Prevention and Punishment of the Crime of Genocide (1948)
- International Convention on the Elimination of All Forms of Racial Discrimination (1969)
- International Covenant on Civil and Political Rights (1976)
- International Covenant on Economic Social and Cultural Rights (1976)
- Convention on the Elimination of All Forms of Discrimination Against Women (1981)
- Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (1987)
- Convention on the Rights of the Child (1990)
- Convention concerning Equal Remuneration of Men and Women Workers for Work of Equal Value, No 100 (1951)
- Convention concerning the Abolition of Forced Labour, No 105 (1957)
- Convention concerning Discrimination in Respect of Employment and Occupation, No 111 (1958)
- Convention concerning Minimum Age for Admission to Employment, No 138 (1973)
- Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, No 182 (1999)
Not Ratified
- Convention concerning Forced or Compulsory Labour, No 29 (1930)
- Convention concerning Freedom of Association and Protection of the Right to Organise, No 87 (1948)
- Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively, No 98 (1949)
Additional Conventions
- Convention on International Trade in Endangered Species of Wild Fauna and Flora (1973)
- Montreal Protocol on Substances that Deplete the Ozone Layer (1987)
- Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (1989)
- Convention on Biological Diversity (1992)
- The United Nations Framework Convention on Climate Change (1992)
- Cartagena Protocol on Biosafety (2000)
- Stockholm Convention on persistent Organic Pollutants (2001)
- Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998)
- United Nations Single Convention on Narcotic Drugs (1961)
- United Nations Convention on Psychotropic Substances (1971)
- United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
- United Nations Convention against Corruption (2004)
EU-Afghanistan Bilateral Development Cooperation
DG INTPA
Access all info about EU-Afghanistan relations on the International Partnerships website.