What is the EBA?

The “Everything but Arms”(EBA) scheme is a permanent arrangement covering Least Developed Countries (LDC’s) as classified by the United Nations. This arrangement enables duty-free and quota-free access for all products (7200 products in total) originating in LDC’s except for arms and ammunition. Different from the Standard GSP and GSP+, LDC’s are not excluded from the scheme if they benefit from other preferential arrangements.

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17,72 M

Population

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Presidential Republic

Government

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2.20%

GDP Growth

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3.50%

Inflation

money

$ 12,70 B

GDP

Facts about Chad's economy

Export Products

By far the most important export product for Chad is petroleum oil. Other export goods, predominantly from the agricultural sector, are sesame seeds, natural gum Arabic and raw cotton.

Trade Partners

Chad's most important trading partners are the EU, China, India, and the US. These markets are of particular importance for Chad's exports. Regional trade, for example with Cameroon, only plays a subordinate role.

Economic Structure

Chad is largely dependent on its oil revenues, which account for about 20% of the country's GDP. The cotton industry is another important pillar of the economy, and cotton is both cultivated and processed in the country. Other agricultural activities include livestock, cattle, and gum Arabic. The dependence on oil and agricultural commodities leaves the economy vulnerable to external shocks in prices or climate.

Agriculture

Agriculture remains the backbone of Chad's economy and provides a livelihood for more than 80% of the population. Agricultural activities include subsistence farming, herding, and fishing

Usage of EBA Preferences

Less than 1% of EU imports from Chad are eligible for EBA preferences. In 2020, no preferential imports from Chad were recorded.

Trade with the EU

Total trade with the EU summed up to € 1,379 million in 2021. The EU is Chad's most important trading partner, accounting for a share of 51.2% of total trade. About 67.8 % of exports go to the European market.

Chad and the EU (2022)

Imports from Chad by product section

Imports from Chad over time (in € m)

CHAD AND THE EU’s GSP

Economic Impact

0%

Almost no Chad's exports to the EU market are eligible for EBA preferences.

0%

Chad currently does not make use of preferences granted under the EU's EBA.

Preference utilisation and export diversification

Chad's imports to the EU

Preference Utilisation vs. total eligible imports

For the majority of years, Chad’s preference utilisation rate stood at zero, which implies that the country does not make use of the preferences granted by the EU’s EBA. Overall imports from Chad increased by almost 4 times between 2020 and 2022. This was mainly driven by increasing mineral and machinery imports. Currently, only a very small share of imports are eligible for EBA preferences. Product sections with shares of eligible imports include textiles, machinery and appliances, manufactures, and plastics.

The largest product sections under EBA

SUSTAINABLE DEVELOPMENT

The preferential access to the EU market granted by the EBA scheme is not bound to the ratification of international conventions. Still, Chad upholds a high level of international conventions and has ratified 14 out of 15 fundamental conventions on the protection of human and labour rights. Additionally, Chad has ratified 8 conventions on the protection of the environment and 3 conventions on good governance.

Core international conventions on human rights and labour standards

Ratified

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)

Not Ratified

Convention on the Prevention and Punishment of the Crime of Genocide (1948)

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 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-Chad Bilateral Development Assistance

DG INTPA

Access all info about EU-Chad relations on the International Partnerships website: https://international-partnerships.ec.europa.eu/countries/chad_en

Opportunities in Chad

Efforts to diversify the economy, which presents opportunities in construction, agribusiness, pharmaceuticals, and telecommunications.
The government looks into tapping new value-chains, particularly with regards to processed agricultural goods
The business environment has improved in recent years, active steps have been taken to improve and promote accountability

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