Yemen

Yemen benefits from the EU's "Everything but Arms" (EBA) scheme for least developed countries. According to the World Bank classification, Yemen is considered a low-income economy with a per-capita income of $ 840 in 2018. Overall imports from Yemen amounted to €102,1 million in 2022, which is double the amount from 2020. Preferential imports stood at €23,5 million in 2022.

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.

Yemen flag

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

group

33,70 M

Population

account_balance
in transition

Government

trending_up

0,8% (2018)

GDP Growth

equalizer

17.30%

Inflation

money

$ 21,61 B

GDP

10 ^

Freedomhouse index

5+ -

ITUC Global Rights Index

- -

Environmental Performance Index

Facts about Yemen's economy

Strategic Location

Yemen is strategically located in the Middle East and borders the Arabian Sea, the Gulf of Aden, and the Red Sea, which belong to the world’s most frequented shipping routes.

Export Products

Yemen's main export articles are petroleum oils, fresh and frozen fish, waste and scrap of primary cells and batteries, coffee, as well as different types of fruits and vegetables.

Trade Partners

Yemen's most important trading partners are the UAE, Saudi Arabia and China which is mainly driven by their importance as supplying markets. Turkey, Egypt and Sudan are the most important markets for Yemen's export products.

Economic Structure

Subsistence farming is traditionally the mainstay of Yemen's economy and supports the livelihood of the majority of the population. The most important cash crops are coffee and khat. The fishery sector plays an increasingly important role for the economy. The external sector is highly dependent on Yemen's oil and natural gas reserves, which contributed about 20% to the GDP before the outbreak of the civil war in 2014. The manufacturing sector produces plastic products, textiles, furniture and food and beverages, mainly for the domestic market. The ongoing conflict had severe impact on Yemen's economy and substantially increased the country’s dependence on imports.

Usage of EBA Preferences

Currently about 23% of overall imports from Yemen make use of EBA preferences. The preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports, is very high and currently stands at 80.8%.

Trade with the EU

Total trade with the EU summed up to € 909 million in 2021, which equals a share of 3.1% of Yemen's overall trade.

Yemen and the EU (2022)

Imports from Yemen by product section

Imports from Yemen over time (in € m)

YEMEN AND THE EU’s GSP

Economic Impact

29%

About 29% of Yemen's exports to the European market are eligible for EBA preferences.

80.80%

Yemen makes considerable use of the EBA. The preference utilisation rate currently stands at 81%.

Preference utilisation and export diversification

Yemen's imports to the EU

Preference Utilisation vs. total eligible imports

Overall EU imports from Yemen increased by 50% between 2020 and 2022. Preferential imports in 2022, however, stood at slightly over 20% of total imports. Nevertheless, Yemen made considerable use of EBA preferences- about 80% of eligible imports utilised duty-free and quota-free access to the European market.

The largest product sections under EBA

Fish and fish products from Yemen between 2020 and 2022 remain the largest product section traded under the EBA and account for 98% of overall preferential imports.

SUSTAINABLE DEVELOPMENT

As a beneficiary of the EBA, Yemen is not obligated to ratify any conventions to be able to benefit from preferential access to the European market. Nonetheless, Yemen maintains a high level of ratification and has ratified all 15 core international conventions on human and labour rights, which includes 7 UN human rights conventions and 8 ILO conventions on labour standards. Additionally, Yemen has ratified 8 conventions on environmental protection and 4 conventions on good governance aspects.

Core international conventions on human rights and labour standards

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 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)

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)
  • United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
  • United Nations Convention against Corruption (2004)

EU-Yemen Bilateral Development Assistance

DG INTPA

Access all info about EU-Yemen relations on the International Partnerships website: https://international-partnerships.ec.europa.eu/countries/yemen_en

Opportunities in Yemen

  • Next to the prominent oil sector, the food processing and consumer goods sector provide opportunities for European companies

Contact points