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
326,74 K
Population
Parliamentary Republic
Government
1.80%
GDP Growth
5.70%
Inflation
$ 1,06 M
GDP
Facts about Vanuatu's economy
Island Economy
Vanuatu is an island economy located in the Southern Pacific off the eastern coast of Australia. The in total 83 islands are mostly mountainous and part of the Pacific’s seismic strip which leaves the country particularly vulnerable to volcanic eruptions, earthquakes, and tsunamis.
Export Products
Vanuatu's main export articles originate from the ocean, including different types of frozen fish (tuna, skipjack, bonito, albacore, swordfish). Vanuatu also exports different types of plants mainly used in perfumery or pharmacy and cocoa beans.
Trade Partners
Vanuatu's most important trading partners are Australia, China, and New Zealand. Together Australia and China account for about one third of overall trade. Most important export markets are Philippines, the EU and Australia.
Economic Structure
Vanuatu's economy is traditionally based on subsistence farming. The most important cash crops include copra, kava, beef, timber, and cocoa. Fishing additionally supports the livelihood of Vanuatu's population and builds a foundation for the country's trading activities. Furthermore, offshore financial services and tourism are important sources of foreign exchange.
Usage of EBA Preferences
Only a small share of about 8% of overall imports from Vanuatu make use of EBA preferences. The preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports currently stands at 22%.
Trade with the EU
Total trade with the EU amounted to € 24 million in 2021. With a share of 7.9%, the EU only plays a minor part in Vanuatu's overall trade relations.
Vanuatu and the EU (2022)
Imports from Vanuatu by product section
Imports from Vanuatu over time (in € m)
VANUATU AND THE EU’s GSP
Economic Impact
16%
About 16% of Vanuatu's exports to the EU market are eligible for EBA preferences.
18.60%
Vanuatu currently has a comparatively low preference utilisation rate of 18.6%.
Preference utilisation and export diversification
Vanuatu's imports to the EU
Preference Utilisation vs. total eligible imports
Following the reform of the GSP in 2014, Vanuatu’s preference utilisation rate dropped significantly. This drop, however, was accompanied by a significant increase in eligible imports in 2015. Between 2017 and 2019 eligible imports showed a decreasing trend, but increased in 2020. EBA preferences are only used for less than 20% of eligible imports. The main imports originating from Vanuatu are imported using zero most-favoured-nation duties.
The largest product sections under EBA
In 2022, Vanuatu only used preferences for one product section, namely cereals, grains, seeds.Despite a number of other imports that are also eligible for EBA preferences, including for example machinery and appliances, minerals, base metals, and clothing, Vanuatu did not take advantage of its preferential access for these products.
SUSTAINABLE DEVELOPMENT
The preferential access to the EU market granted by the EBA scheme is not bound to the ratification of international conventions. Nonetheless, Vanuatu has ratified 4 out of 7 fundamental UN human rights conventions and all 8 ILO conventions on the protection of labour rights. Additionally, Vanuatu has ratified 7 conventions on the protection of the environment and 2 good governance conventions.
Core international conventions on human rights and labour standards
Ratified
- International Covenant on Civil and Political 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)
- International Convention on the Elimination of All Forms of Racial Discrimination (1969)
- International Covenant on Economic Social and Cultural Rights (1976)
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 Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
- United Nations Convention against Corruption (2004)
EU-Vanuatu Bilateral Development Assistance
DG INTPA
Access all info about EU-Pacific Islands Countries relations on the International Partnerships website: https://international-partnerships.ec.europa.eu/countries/pacific-islands-countries_en
Opportunities in Vanuatu
- Recent investments in port infrastructure in Port Vila and Luganville, which now can cater standard and large-size containers
- High demand for investments in the electricity and water utility sectors
Most recent events
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Contact points
- Vanuatu Chamber of Commerce and Industry
- Delegation of the European Union for the Pacific responsible for Cook Islands, Federated States of Micronesia, Fiji, Kiribati, Nauru, Niue, Palau, Republic of Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu as well as the four Overseas Countries and Territories in the Pacific
- Vanuatu Trade Portal
- Vanuatu Investment Promotion Agency
- Department of Industry
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