The European Commission, Council and Parliament have reached a political agreement to update the EU’s Generalised Scheme of Preferences (GSP), the bloc’s flagship trade instrument for supporting sustainable development in vulnerable and low-income countries.
The Commission said the deal provides much-needed certainty for the 65 developing countries currently benefitting from preferential access to the EU market, as well as for European companies importing from those nations. The update comes at a time when developing economies face mounting challenges, including rising global tariff barriers.
The revised GSP framework aims to better reflect the evolving needs of beneficiary countries while reinforcing the scheme’s environmental, social and labour dimensions. Key changes include:
- Smoother transition arrangements for countries moving up the development ladder, allowing them to retain preferential EU access if they meet sustainability standards.
- Lower product graduation thresholds, creating new export opportunities for low-income countries.
- Expanded human rights and labour obligations, with additional international conventions required for participation.
- New grounds for withdrawing benefits in cases of serious environmental or climate-related violations.
- Stronger monitoring, transparency and civil society involvement, including an urgent withdrawal mechanism.
- Obligations for beneficiary countries to readmit their own nationals in cases of irregular migration.
The GSP Regulation has been central to EU development policy for more than 50 years, using unilateral trade preferences to promote poverty reduction, sustainable growth and global economic integration. In 2024, EU imports under the GSP totalled €60 billion, with least developed countries — covered under the Everything But Arms arrangement — accounting for 51% of that value.
The revised regulation was first proposed by the Commission in 2021. Once formally adopted, it will ensure the EU continues to support vulnerable economies while aligning trade preferences with modern sustainability and climate standards.
