Tajikistan is currently a beneficiary of the EU's Standard GSP but has showed interest in joining the GSP+ arrangement in the near future. With a per capita income of $1,161 (2023), the World Bank classifies the country as a lower-middle income economy. In 2023, total EU imports from Tajikistan amounted to a record €174 million. Imports eligible for GSP preferences stood at €22 million in 2023, of which €13 million actually made use of the preferences.
The Standard GSP targets developing countries that are classified by the World Bank as lower or lower-middle income countries and which do not have equal preferential access to the EU market through any other arrangement. Standard GSP beneficiary countries can benefit from duty suspension for non-sensitive products as well as duty reductions for sensitive products across approximately 66% of all EU tariff lines.
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Tajikistan is a landlocked country in Central Asia, for which aluminium production is of high economic importance. The aluminium plant owned by the Tajik Aluminum Company is the largest in Central Asia and is also considered one of the largest aluminium plants in the world.
Tajikistan’s main export products in 2023 were metallic ores (for example lead, zinc, antimony, and copper), cotton, and aluminium. Electricity from the country's hydropower plants is being exported particularly in the summer months.
Tajikistan mainly trades with regional trading partners. Russia is the most important partner, accounts for about 24% of Tajikistan’s overall trade in 2023, followed by Kazakhstan, China and Uzbekistan.
Industry (35% of GDP in 2023), services (34%) and agriculture (23%) are all important pillars of Tajikistan's economy; the latter two employ about 90% of the population. The cultivation of cotton accounts for the largest share of Tajikistan's limited cultivation areas. Wheat, barley, and rice as well as the raising of livestock are additional agricultural activities. Processing the cotton and producing silk are pillars of the manufacturing sector, which is complemented by food processing and metal working industries. Remittances, mostly from Tajiks working in Russia, are extremely important, accounting for 38% of GDP in 2023.
In 2023, 8% of Tajikistan's exports to the EU used the preferences granted under the GSP. The preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports, stood at 61%.
Total trade with the EU amounted to €572 million in 2023. With a share of 7% the EU is Tajikistan's fifth most important trading partner. About 11% of exports go to the EU market.
Share of Tajikistan's exports to the EU that were eligible for GSP preferences in 2023.
Tajikistan's preference utilisation rate in 2023.
Share of zero-duty imports from Tajikistan.
Although the EU's total imports from Tajikistan (dominated by base metals) have strongly increased since 2019, GSP eligible imports only account for a limited share. Nevertheless, eligible imports also increased in recent years, and Tajikistan’s preference utilisation rate was very high (90% and above) from 2014 to 2022. It dropped to 61% in 2023.
Preferential imports from Tajikistan are highly concentrated on apparel, which accounts for about 87% of GSP-eligible imports. This sector's preference utilisation rate dropped from almost 100% in 2021 and 2022 to 58% in 2023. Other product groups using the GSP are textiles, as well as fruit and vegetables. Overall, imports from Tajikistan still leave room for further diversification.
As a beneficiary of the Standard GSP, Tajikistan is not required to ratify any conventions to be able to benefit from preferential access to the EU market. Nonetheless, Tajikistan has ratified all 15 core international conventions on human and labour rights, as well as all 12 conventions on environmental protection and good governance listed in the GSP Regulation. Tajikistan has expressed interest in joining the EU's GSP+ arrangement, which requires beneficiaries to ratify these 27 international conventions. With the current status of ratifications, Tajikistan already fulfils this admission criterion.
Access all info about EU-Tajikistan relations on the International Partnerships website.