Benin
As a least-developed country (LDC), Benin is a beneficiary of the EU's "Everything but Arms" (EBA) arrangement. The World Bank considers Benin a lower middle-income economy with a per-capita income of $1,394 in 2023. EU imports from Benin amounted to about €49 million in 2023. As most of Benin's exports enter the EU duty-free under the EU's normal tariff regime, the scope for preferential imports is limited - these reached €6.9 million in 2023, almost double than in 2021.
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)
14.1M (2023)
Population
Presidential Republic
Government
6.4% (2023)
GDP Growth
2.7% (2023)
Inflation
$ 19.7B (2023)
GDP
Facts about Benin's economy
Cotton Production
Economic development in Benin was mainly driven by cotton production, which can look back on a decade of impressive growth rates and has made the country one of the leading producers in the region. Benin is Africa’s second largest cotton producing country after Mali.
Export Products
By far the most important export product for Benin is raw cotton, accounting for almost half of the total export earnings, followed by oil seeds and cashew nuts.
Trade Partners
The EU, India and China are Benin's most important trading partners, accounting for a combined share of almost 50%. Bangladesh and India are the most important markets for Benin's exports (mostly cotton), while most imported goods originate from the EU, India, and China.
Economic Structure
Agriculture and particularly the cultivation of cotton, are important for Benin's economy accounting for about a quarter of GDP. Industrial activities include the processing of cotton, palm oil and shrimp as well as textile milling and sugar refining; manufacturing accounts for about 10% of GDP.
Usage of EBA Preferences
In 2023, about 18% of total imports from Benin made use of the preferential access granted by the EBA scheme. The preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports, stood at 80% in 2023.
Trade with the EU
Total trade with the EU amounted to €863 million in 2023. With a share of 18.8%, the EU was Benin's most important trading partner in 2023 - but it was only the seventh largest export market of the country (with a share of 4.2%).
Benin and the EU
Imports from Benin by product section (2023, € million)
Imports from Benin over time (€ million)
BENIN AND THE EU GSP
Economic Impact
22%
Share of Benin's exports to the EU that were eligible for EBA preferences in 2023.
80%
Benin's preference utilisation rate in 2023.
95%
Share of zero-duty imports from Benin. Most imports are duty-free under normal EU tariffs.
Preference utilisation and export diversification
EU imports from Benin (€ million)
Preference utilisation (%) vs. total eligible imports (in € million)
EBA-eligible imports from Benin increased strongly since 2020. Despite some fluctuations, Benin’s preference utilisation rate is high and consistently ranges above 70%, though except for 2022, when the utilisation rate dropped to 50%. This is also reflected on the level of the individual product sections. In most the prominent product groups, fruits and vegetables, and foodstuffs and beverages, preferences were used for around 80% of eligible imports or more.
The largest product sections under EBA (€ million, 2023)
In 2023, the EU's major EBA eligible imports from Benin were fruit and vegetables (whose eligible import value doubled compared to 2022), food preparations, machinery, and cereals. All of these also made good use of the EBA preferences.
SUSTAINABLE DEVELOPMENT
As a beneficiary of the EBA, Benin is not obligated to ratify any conventions to be able to benefit from preferential access to the EU market. Nonetheless, Benin has ratified all 15 core international conventions on human and labour rights. This includes 7 UN human rights conventions and 8 ILO conventions on labour standards. Additionally, Benin has ratified 8 conventions on environmental protection and 4 conventions on good governance aspects.
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 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)
- 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)
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-Benin Bilateral Development Cooperation
DG INTPA
Access all info about EU-Benin relations on the International Partnerships website.