Yemen
As a least-developed country (LDC), Yemen is a beneficiary of the EU's "Everything but Arms" (EBA) arrangement. The World Bank classifies Yemen as a low-income economy with a per-capita income of $477 in 2023, and on a downward trajectory. Total EU imports from Yemen amounted to €37.3 million in 2023, the lowest value since 2017, and preferential imports to €11.9 million.
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.
At a glance: EU preferential imports from EBA beneficiary countries (2023, € million)
39.4M (2023)
Population
in transition
Government
-2.0% (2023)
GDP Growth
0.9% (2023)
Inflation
no data
GDP
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 gold, fresh and frozen fish, scrap metal, as well as different types of fruits and vegetables.
Trade Partners
Yemen's most important trading partners are the UAE, Oman, and Saudi Arabia. These three countries are also the largest suppliers. Reliable data on Yemen's export markets are not available.
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 ongoing conflict has had a severe impact on Yemen's economy and substantially increased the country’s dependence on imports.
Usage of EBA Preferences
In 2023, about 43% of EU imports from Yemen made use of EBA preferences. The preference utilisation rate, which represents the ratio of preferential imports to GSP eligible imports, stood at 58%, having dropped from more than 80% in previous years.
Trade with the EU
Total trade with the EU amounted to €140 million in 2023, equal to a share of 3% in Yemen's overall trade.
Yemen and the EU
Imports from Yemen by product section (2023, € million)
Imports from Yemen over time (€ million)
YEMEN AND THE EU GSP
Economic Impact
75%
Share of Yemen's exports to the EU that were eligible for EBA preferences in 2023.
58%
Yemen's preference utilisation rate in 2023.
51%
Share of zero-duty imports from Yemen.
Preference utilisation and export diversification
EU imports from Yemen (€ million)
Preference utilisation (%) vs. total eligible imports (in € million)
Overall EU imports from Yemen have been highly volatile over the years, oscillating between €17 million and €250 million. Preference-eligible imports are considerably smaller but have also fluctuated between €6 million and €29 million, and without any clear trend. Preference utilisation was around 90% from 2017 to 2022 but decreased to 58% in 2023, compounding the decrease in eligible imports in that year. The same trend applies to the dominant product category benefitting from the EBA, fish.
The largest product sections under EBA (€ million, 2023)
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 EU 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 Cooperation
DG INTPA
Access all info about EU-Yemen relations on the International Partnerships website.