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.

At a glance: EBA beneficiaries' preferential imports to the EU

group

227,38 K

Population

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Semi-Presidential Republic

Government

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0.10%

GDP Growth

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3.30%

Inflation

money

$ 542,69 M

GDP

Facts about Sao Tome and Principe's economy

Island Economy

Sao Tome and Principe is an island economy located off the western coast of Central Africa. The islands are covered by mountains and part of an extinct volcano-ridge.

Export Products

The main export articles of Sao Tome and Principe are cocoa beans and chocolate, pepper, and mechanical parts.

Trade Partners

The EU is by far the most important trading partner for Sao Tome and Principe, both considering it as an export market and as a source of imports. Angola ranks second in overall trade and accounts for approximately 20.5% of overall trade.

Economic Structure

Sao Tome and Principe can benefit from excellent climatic conditions for the cultivation of cocoa and coconut palms. These two commodities build the foundation of the economy. The industrial sector remains small and mostly focusses on the production of food and beverages, soap, and other consumer goods for the small domestic market.

Cocoa Production

The most important commodity for Sao Tome and Principe is cocoa. It accounts for about 79% of the country’s exports.

Trade with the EU

Total trade with the EU summed up to € 96 million in 2022. With a share of about 53%, the EU is the most important trading partner for Sao Tome and Principe. 78.5% of exports go to the European market and about 50% of imports originate from the EU.

Sao Tome and Principe and the EU (2022)

Imports from Sao Tome and Principe by product section

Imports from Sao Tome and Principe over time (in € m)

SAO TOME AND PRINCIPE AND THE EU’s GSP

Economic Impact

36%

About 32% of Sao Tome and Principe's exports to the EU market are eligible for preferences granted by the EU's EBA arrangement.

95%

Sao Tome and Principe make good use of preferences granted under the EBA. The preference utilisation rate currently stands at 95%.

Preference utilisation and export diversification

Sao Tome and Principe's imports to the EU

Preference Utilisation vs. total eligible imports

The preference utilisation rate of Sao Tome and Principe shows some fluctuations and ranges in the midfield compared to other EBA beneficiaries. Only a minor share of EU imports from Sao Tome and Principe is eligible for free access to the EU market. The main export product, cocoa, already benefits from zero third country duties. In those sections, where preferences are being used, Sao Tome and Principe takes good advantage of the preferences granted under the EBA. In some sections, preferences could be taken better advantage of, including for example garments, machinery, and metals.

The largest product sections under EBA

Only four sections currently take advantage of the duty-free access to the EU market. This includes prepared foodstuffs and beverages, fats and oils, and coffee, tea and spices. While the number of product sections that are traded under the EBA has been constant, the overall number of product sections from which products are being imported has increased to 20 in recent years.

SUSTAINABLE DEVELOPMENT

The preferential access to the EU market granted by the EBA scheme is not bound to the ratification of international conventions. Sao Tome and Principe have ratified 14 out of 15 core conventions on the protection of human rights and labour standards. Additionally, Sao Tome and Principe have ratified 7 conventions on the protection of the environment and 4 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)
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-Sao Tome and Principe Bilateral Development Assistance

DG INTPA

Access all info about EU-São Tomé and Príncipe relations on the International Partnerships website: https://international-partnerships.ec.europa.eu/countries/sao-tome-and-principe_en

Opportunities in Sao Tome and Principe

Efforts to enhance output and productivity in the agricultural sector, e.g. through building greenhouses
Recent investments in expanding electrical production capacities