Somalia
As a least-developed country (LDC), Somalia is a beneficiary of the EU's "Everything but Arms" (EBA) arrangement. The World Bank considers Somalia a low-income economy with a per-capita income of $597 in 2023. EU imports from Somalia amounted to about €9.7 million in 2023, the lowest value since 2015. The country has not made use of its preferential access to the EU market in recent years.
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.
18.4M (2023)
Population
Federal Parliamentary Republic
Government
4.2% (2023)
GDP Growth
6.2% (2023)
Inflation
$ 11.0B (2023)
GDP
Facts about Somalia's economy
Strategic Location
Somalia is strategically well located on the Horn of Africa along major international shipping routes through the Suez Canal and the Red Sea.
Export Products
An important export good for Somalia are live animals (sheep and goats in particular), which are mainly exported to the Arabian Peninsula. Other main export goods in 2023 were gold, postal stamps, and fish products.
Trade Partners
Somalia's most important trading partners are China and India, which accounted for a combined share of 40% of total trade in 2023. Saudi Arabia and Oman are the most important export markets for Somali products. Most imports originate from China and India.
Economic Structure
The agricultural sector, which is dominated by livestock, contributes the largest share to the GDP. The agricultural sector mainly focusses on palm oil, copra, and cocoa for export. The extensive exploitation of fish and timber in the past led to the depletion of these resources. Somalia possesses some mineral resources like bauxite and phosphates. The industrial sector focusses on the processing of agricultural commodities, mainly the production of oil from coconut and other vegetables.
Usage of EBA Preferences
As most of Somalia's exports enter the EU duty-free under the normal tariff regime, only a small share of about 2% of total EU imports from the country were eligible for EBA preferences in 2023. Somalia did not make use of EBA preferences.
Trade with the EU
Total trade with the EU amounted to €193 million in 2023. With a share of 4.3% in the country's total trade, the EU only plays a minor role in Somalia's trade relations.
Somalia and the EU
Imports from Somalia by product section (2023, € million)
Imports from Somalia over time (€ million)
SOMALIA AND THE EU GSP
Economic Impact
2%
Only a small share of Somalia's exports to the EU were eligible for EBA preferences in 2023.
0%
Somalia did not make use of EBA preferences in 2023.
98%
Share of zero-duty imports from Somalia. Most imports are duty-free under normal EU tariffs.
Preference utilisation and export diversification
EU imports from Somalia (€ million)
Preference utilisation (%) vs. total eligible imports (in € million)
As most EU imports from Somalia are duty-free under the normal tariff regime (e.g. sesame seeds), the relevance of EBA trade preferences for Somalia remains small. Eligible imports never reached €1 million and have been on a declining trend since 2018. Since 2020, Somalia has not taken advantage of EBA preferences.
The largest product sections under EBA (€ million, 2023)
SUSTAINABLE DEVELOPMENT
As a beneficiary of the EBA, Somalia is not obligated to ratify any conventions to be able to benefit from preferential access to the EU market. Somalia has ratified 11 out of 15 core international conventions on the protection of human rights and labour standards. Additionally, Somalia has ratified 8 conventions on the protection of the environment and two 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 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 the Abolition of Forced Labour, No 105 (1957)
- Convention concerning Discrimination in Respect of Employment and Occupation, No 111 (1958)
- 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)
- Convention on the Elimination of All Forms of Discrimination Against Women (1981)
- Convention concerning Equal Remuneration of Men and Women Workers for Work of Equal Value, No 100 (1951)
- Convention concerning Minimum Age for Admission to Employment, No 138 (1973)
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)
EU-Somalia Bilateral Development Cooperation
DG INTPA
Access all info about EU-Somalia relations on the International Partnerships website.