Ensuring Continuity: EU Extends Generalized Scheme of Preferences (GSP) Regulation until the end of 2027

8 February 2024

In November 2023, the European Union took a step to ensure the continued application of the Generalized Schemes of Preferences (GSP) Regulation (Regulation (EU) 978/2012) until the end of 2027. The current GSP framework was set to expire on December 31, 2023.[1] However, an extension was deemed necessary as the European Parliament and the Council have not yet reached an agreement on the European Commission’s proposal for a new GSP regulation. Hence, the Council and the Parliament signed an amendment to the existing GSP Regulation, in order to extend the scheme for the period 2024-2027. This extension guarantees that GSP beneficiary countries will continue to enjoy tariff preferences for the period 2024-2027.

The extension of the GSP Regulation underscores the EU's commitment to supporting poverty eradication, sustainable economic growth and increased export opportunities for low-income countries.  As negotiations continue, the EU remains dedicated to striking a balance between trade benefits and adherence to international norms, ensuring a fair and sustainable global trading system.

The negotiations on a new GSP have been on-going since the Commission’s proposal in 2021. The Belgian Presidency over the Council of the European Union from 1 January to 30 June 2024 shoulders the responsibility of steering these negotiations to a decisive conclusion. Failure to do so by the end of the Belgian presidency will result in the continuation of deliberations after the election of the new European Parliament, scheduled to be held from 6 to 9 June 2024.

Read more about the European Commission’s proposal for a new GSP regulation here.

[1] European Commission, Trade, Generalized Scheme of Preferences, Available at: https://policy.trade.ec.europa.eu/development-and-sustainability/generalised-scheme-preferences_en