Vanuatu
Vanuatu graduated from Least Developed Country (LDC) status in December 2020, and accordingly moved from the Everything But Arms (EBA) arrangement to the Standard GSP in January 2025. Classified as a lower middle-income country by the World Bank, per-capita income stood at $3,543 in 2024. Total EU imports from Vanuatu amounted to €2.0 million in 2024. Of these, €76 thousand were eligible for EBA preferences (most other exports entered the EU without duties under the EU's normal tariff regime); no imports actually used the preferences.
What is the GSP?
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.
0.3M (2024)
Population
Parliamentary Republic
Government
4.0% (2024)
GDP Growth
1.2% (2024)
Inflation
$ 1.2B (2024)
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 in 2024 were Australia (24% of the country's total trade), Singapore (22%) and China (14%). The most important export markets in 2024 were Australia, Fiji and China, while Singapore and Australia were the most important suppliers.
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
Most exports from Vanuatu can enter the EU market duty free under the normal tariff regime, and therefore less than 4% of them were eligible for GSP preferences in 2024. None of those used the preferences.
Trade with the EU
Total trade with the EU amounted to €9 million in 2024. With a share of 2% in Vanuatu's overall trade, the EU only plays a small role in the country's trade relations.
Vanuatu and the EU
Imports from Vanuatu by product section (2024, € million)
Imports from Vanuatu over time (€ million)
VANUATU AND THE EU GSP
Economic Impact
4%
Share of Vanuatu's exports to the EU that were eligible for EBA preferences in 2024.
0%
Vanuatu did not make use of GSP preferences in 2024.
96%
Share of zero-duty imports from Vanuatu in 2024. Most imports are duty-free under normal EU tariffs.
Preference utilisation and export diversification
EU imports from Vanuatu (€ million)
Preference utilisation (%) vs. total eligible imports (in € million)
With the exception of 2021, EU imports from Vanuatu have been low since 2016, and 2024 was no exception. Also, main imports from Vanuatu are imported using zero most-favoured-nation duties and thus are not eligible for GSP preferences; eligible imports were below €0.5 million in recent years. Vanuatu’s preference utilisation rate decreased, from more than 80% in 2014 to 12% in 2023; and no preferences were used in 2024.
The largest product sections under EBA (€ million, 2024)
EU preference-eligible imports from Vanuatu are very small, and none of these preferences were used in 2024.
SUSTAINABLE DEVELOPMENT
The preferential access to the EU market granted by the Standard GSP is not bound to the ratification of international conventions. Nonetheless, Vanuatu has ratified four out of the seven fundamental UN human rights conventions and all eight ILO conventions on the protection of labour rights listed in the GSP Regulation. Vanuatu has also ratified seven of the eight conventions on the protection of the environment and two of the four 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 Cooperation
DG INTPA
Access all info about EU-Pacific Islands Countries relations on the International Partnerships website.