The European Commission and the High Representative for the Common Foreign and Security Policy published a joint report this week, detailing the implementation of the Generalised Scheme of Preferences (GSP), the EU’s main trade tool supporting developing countries’ exports.

The report confirms that the scheme continues to drive economic progress and sustainable development in beneficiary countries while offering stability and predictability during geopolitical uncertainty.

The GSP, which unilaterally grants access to EU markets with low or zero duties, is described as a consistent anchor for trade relations in volatile times.

The findings cover the period from 2023 to 2025 and assess the scheme’s three arrangements, namely Standard GSP, GSP+ and Everything But Arms.

In 2024, the EU imported nearly €60 billion worth of goods under GSP preferences, benefiting both partner countries and European importers and consumers.

Beneficiary countries received preferential tariff treatment that generated an estimated €5 billion in savings.

The largest share of benefits went to least-developed countries, which secured more than €3 billion under the Everything But Arms instrument.

Bangladesh, India and Pakistan emerged as the biggest beneficiaries, while clothing dominated trade flows, accounting for 59 per cent of all GSP-related imports.

Beyond trade, the scheme is credited with encouraging sustainable development and good governance, particularly in areas such as human rights, labour standards, environmental protection and anti-corruption.

EU monitoring and engagement mechanisms are highlighted as central to supporting reforms and improvements across beneficiary countries.

Partnership projects funded by the EU have also contributed to addressing country-specific challenges through targeted cooperation.

The report is accompanied by nine staff working documents covering the eight current GSP+ beneficiaries and three countries under enhanced engagement through the Everything But Arms arrangement.

Overall, beneficiary countries are said to have made progress towards sustainable development and compliance with international standards, which form part of the scheme’s conditions.

Many GSP+ countries strengthened human rights legislation and institutional frameworks during the reporting period.

Most of these countries also recorded improvements in labour rights, although progress varied in scope and consistency.

Commitments to climate and environmental protection remained strong, with several countries enhancing biodiversity measures and protected-area legislation.

Improvements in governance, particularly in drug control and anti-corruption, were also observed in a number of cases.

However, the report notes that significant challenges remain in implementing GSP+ commitments, especially in relation to human rights.

Issues such as limited judicial independence, restricted access to remedies and weak accountability for abuses continue to be concerns.

Labour rights enforcement is described as uneven, with labour inspectorates often constrained by limited capacity.

Looking ahead, the economic outlook for most beneficiary countries is expected to improve, with several on track to graduate from United Nations least-developed country status.

The GSP is expected to remain important during these transitions, providing continued support as countries adjust.

The scheme currently covers 65 countries representing more than 3 billion people, offering reduced or zero import duties to support poverty reduction, economic growth and sustainable development.

Least-developed countries benefit from full duty-free and quota-free access to the EU market under the initiative.

Such access is conditional on adherence to international standards on human rights, labour rights, environmental protection and good governance.

The report reflects engagement by the commission and the European External Action Service with governments, civil society, social partners and businesses, including monitoring missions and enhanced dialogue.

This publication marks the final report under the current GSP regulation and signals a transition to a new framework with stronger sustainability and transparency requirements.

The new GSP regulation for 2027 to 2036 was adopted on June 17, 2026 and published on June 22, 2026, and will take effect on January 1, 2027.