Eritrea
As a least-developed country (LDC), Eritrea is a beneficiary of the EU's "Everything but Arms" (EBA) arrangement. The World Bank classifies Eritrea as a low-income economy with a per-capita income of less than $1,000 (latest data refer to 2011). Total EU imports from Eritrea amounted to about €6.8 million in 2023; preferential EBA imports reached €4.2 million.
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)
3.5M (2023)
Population
Presidential Republic
Government
no data
GDP Growth
no data
Inflation
no data
GDP
Facts about Eritrea's economy
Strategic Location
Eritrea is strategically located in Eastern Africa bordering the Red Sea, one of the world’s busiest shipping routes. It currently possesses two ports along its over 1,000 km long coastline. Likewise, Eritrea is in close proximity to major oil markets on the Arabian peninsula.
Export Products
Zinc and copper ores dominate Eritrea's export sector, followed by gold. Some manufactures, such as apparel and clothing articles and malt beer, are also exported.
Trade Partners
Eritrea's most important trading partner is China, which accounts for a share in overall trade of 52% (2023) and absorbs 75% of Eritrea's exports. The EU ranks second, followed by Türkiye and South Korea. Most imports also originate from China (30%).
Economic Structure
Small-scale farming, mainly for subsistence purposes, remains the cornerstone of the Eritrean economy and while it only contributes a small fraction to the GDP it supports the livelihood of about 80% of the population. The most prominent products are different types of grain, sesame seeds, vegetables, cotton, tobacco, and sisal. The manufacturing sector mainly centres around the processing of agricultural products, textiles, and leather as well as mining.
Usage of EBA Preferences
About 62% of overall EU imports from Eritrea made use of EBA preferences in 2023. The preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports, stood at 65%.
Trade with the EU
Total trade with the EU amounted to €65 million in 2023. With a share of 7.3%, the EU is Eritrea's second most important trading partner. Exports are however limited to €6 million, making the EU the fourth largest export market.
Eritrea and the EU
Imports from Eritrea by product section (2023, € million)
Imports from Eritrea over time (€ million)
ERITREA AND THE EU GSP
Economic Impact
96%
A large share of Eritrea's exports to the EU were eligible for EBA preferences in 2023.
65%
Eritrea's preference utilisation rate in 2023.
66%
Share of zero-duty imports from Eritrea.
Preference utilisation and export diversification
EU imports from Eritrea (€ million)
Preference utilisation (%) vs. total eligible imports (in € million)
Almost all EU imports from Eritrea are eligible for EBA preferences, and eligible imports expanded strongly from 2020 to 2023. Eritrea’s preference utilisation rate was very high (around 95% and more) in most of the recent years but dropped to 65% in 2023. By far the most important product category is apparel, which accounts for almost the totality of Eritrea's exports to the EU.
The largest product sections under EBA (€ million, 2023)
Eritrea’s exports under the EBA remain highly concentrated on apparel and textiles, which account for 100% of all exports under the EBA.
SUSTAINABLE DEVELOPMENT
The preferential access to the EU market granted by the EBA scheme is not bound to the ratification of international conventions. Nonetheless, Eritrea maintains a very high level of ratification of international conventions. The country has ratified 14 out of 15 core conventions on human rights and labour standards. Furthermore, Eritrea has ratified 8 international conventions on the protection of the environment and 3 good governance conventions.
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 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)
EU-Eritrea Bilateral Development Cooperation
DG INTPA
Access all info about EU-Eritrea relations on the International Partnerships website.