REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Report on the Generalised Scheme of Preferences covering the period 2014-2015
Date: 2016-01-28
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: EU market, common commercial policy, developing countries, development aid, generalised preferences, international convention, sustainable development, tariff preference

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 28.1.2016  COM(2016) 29 final   REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Report on the Generalised Scheme of Preferences covering the period 2014-2015 {SWD(2016) 8 final}  
 
 
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT 
AND THE COUNCIL 

Report on the Generalised Scheme of Preferences covering the period 2014-2015 

1. 

INTRODUCTION 

1.1.  The Generalised Scheme of Preferences (GSP)  

Since 1971, the EU Generalised Scheme of Preferences ('GSP') has assisted developing 
countries  in  their  efforts  to  reduce  poverty,  promote  good  governance  and  sustainable 
development.  By  providing  preferential  access  to  the  EU  market,  the  GSP  helps 
developing countries generate additional revenue through international trade. Regulation 
(EU) No 978/2012 of the European Parliament and the Council of 25 October 2012 on 
applying  a  scheme  of  generalised  tariff  preferences1  ('the  GSP  Regulation')  is  the  legal 
framework for the GSP. The scheme is  in  line with  WTO law, having  been  introduced 
under  the  so-called  'Enabling  Clause',  which  allows  an  exception  to  the  WTO  'Most-
Favoured Nation' principle.  

1.2.  Three arrangements within GSP  

The GSP Regulation reformed the GSP in order to better focus GSP preferences on those 
countries  most  in  need,  in  particular,  least  developed  countries  ('LDCs')  and  other  low 
and  lower-middle  income  developing  countries.  The  reforms  to  the  GSP  significantly 
reduced  the number of beneficiaries from 178 to  922. Countries which are classified as 
upper-middle income and above by the World Bank are excluded from GSP preferences. 
Also  excluded  are  countries  that  benefit  from  a  preferential market  access  arrangement 
with the EU that grants at least the same level of tariff preferences for substantially all 
trade. 

To  accommodate  developing  countries'  trade,  development  and  financial  needs 
effectively,  the  GSP  provides  three  different  preference  arrangements:  a  general  GSP 
arrangement and two special arrangements. 

−  The general arrangement ('Standard GSP') grants duty reductions for ca. 66% of all 
EU tariff lines to countries of low or lower-middle income, which do not benefit from 
other preferential trade access to the EU market. There are currently 30 Standard GSP 
beneficiaries. 

−  The  Special  Incentive  Arrangement  for  Sustainable  Development  and  Good 
Governance,  ('GSP+')  grants  complete  duty  suspension  for  essentially  the  same 
66% tariff lines, as the Standard GSP, for countries especially vulnerable in terms of 
their economies' diversification and import volumes. In return, beneficiary countries 
must ratify and effectively implement 27 core international conventions, as listed in 

1 OJ L 303, 31.10.2012, p. 1 
2 Unless stated otherwise, this report reflects the situation on 1 December 2015. Moreover, data included in 

this report concerns only GSP beneficiaries as of 1 December 2015. 

2 

 
 
 
                                                 
Annex  VIII  of  the  GSP  Regulation.  These  conventions  cover  human  and  labour 
rights, environmental protection, and good governance. There are currently 13 GSP+ 
beneficiaries. 

−  The special arrangement Everything But Arms ('EBA') grants full duty-free, quota-
free access for all products except arms and ammunition, for countries classified by 
the UN as LDCs. There are currently 49 EBA beneficiaries. 

In 2014, almost EUR 50.83 billion of imports received GSP preferences as follows: EUR 
27.3 billion of imports from countries under the Standard GSP, around EUR 6.5 billion 
of imports from GSP+ beneficiaries and EUR 17 billion of imports from EBA countries. 
Full details are given in Tables 1-4 of this Report. 

Figures  1  and  2  below  provide  an  overview  of  imports  under  the  three  GSP 
arrangements.  

Fig. 1 - Preferential imports to EU under Standard GSP, GSP+, and EBA, 
2012-2014 (thousand EUR) 

60.000.000

50.000.000

40.000.000

30.000.000

20.000.000

10.000.000

0

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50.135.280 

49.859.360 

50.797.100 

13,006,233 
25.9% 

6,931,121 
13.8% 

14,462,533 
29.0% 

5,874,269 
11.8% 

30,127,926 
60.2% 

29,522,558 
59.2% 

17,048,607 
33.6% 

6,479,923 
12.8% 

27,268,569 
53.7% 

2012

2013

2014

EBA

GSP+

Standard GSP

3 Eurostat data as of 1 September 2015 

3 

 
 
 
 
 
                                                 
 
 
 
 
 
 
 
Fig. 2- Preferential imports to the EU under the Standard 
GSP, GSP+ and EBA, 2014 (thousand EUR) 

EBA 
17.048.607 
33,6% 

GSP+ 
6.479.923 
12,8% 

Standard GSP 
27.268.569 
53,7% 

1.3.  The objective of this Report 

The  GSP  Regulation  requires  the  Commission  to  submit  a  report  to  the  European 
Parliament and the Council on the functioning of the GSP scheme, once every two years, 
beginning from 1 January 2016.  

The  report  is  required  to  cover  the  effects  of  all  three  preferential  arrangements  of  the 
GSP over the previous two years4. However, the GSP Regulation requires that the report 
take  a  particular  focus  on  the  GSP+.  The  report  should  detail  beneficiary  countries' 
ratification, reporting, and effective implementation of the relevant conventions5.  

Thus, this report covers all three elements of the GSP: the  Standard GSP scheme, the 
EBA scheme, with a particular focus on the GSP+ scheme.6 

2.  THE STANDARD GSP ARRANGEMENT 

The list of GSP beneficiaries has been modified a number of times to reflect the exit of 
countries  from  the  GSP,  in  accordance  with  the  criteria  of  Article  4  of  the  GSP 
Regulation (i.e. countries which have been classified by the World Bank as upper-middle 
income  countries  for  three  consecutive  years,  or  have  started  benefitting  from  EU 
preferential market access arrangements providing the same, or better, tariff preferences).  

The list of beneficiaries has also  been modified to include countries newly meeting the 
eligibility conditions for the GSP. In particular: 

4  Article  40  of  the  GSP  Regulation.  Unless  stated  otherwise,  this  report  reflects  the  situation  on  1 

December 2015 

5 Article 14 of the GSP Regulation 
6  A  full  report  on  the  application  of  the  whole  GSP  Regulation  will  be  submitted  to  the  European 
Parliament  and  to  the  Council  five  years  after  the  entry  into  force  of  the  GSP  regulation  (i.e.  by 
November 2017) 

4 

 
 
 
                                                 
−  Iran and Azerbaijan exited on 23 February 20147 

−  Croatia  ceased  to  be  an  eligible  country  and  so  also  a  beneficiary  upon  its  EU 

accession8  

−  South Sudan and Myanmar were included on 1 January 20149 
−  China, Ecuador, Thailand and Maldives graduated out on 1 January 201510 

−  Botswana, Cameroon, Cote d'Ivoire, Fiji, Ghana, Kenya, Namibia and Swaziland 

were included on 1 October 201411. 

The following 30 countries benefit from the Standard GSP12: 

−  Africa: Botswana*, Cameroon, Cote d'Ivoire, Republic of Congo, Kenya, Ghana, 

Namibia, Nauru, Nigeria, Swaziland 

−  Asia:  Kyrgyzstan, 

India, 
Turkmenistan**, Uzbekistan 

Indonesia,  Sri  Lanka,  Vietnam,  Tajikistan, 

−  Australia and Pacific: Cook Islands, Fiji, Marshall Islands, Micronesia (Federate 

States of), Niue, Tonga 

−  Europe: Ukraine 

−  Middle East: Iraq, Syria 

−  South America: Colombia**, Honduras**, Nicaragua** 

As Figures 3 and 4 below show, the exit of China had a major impact on the scope of the 
scheme.  Both  the  product  graduation  thresholds  in  Annex  VI13  and  the  vulnerability 
threshold in Annex VII14 were changed as a result.  

7 Commission Delegated Regulation (EU) No 154/2013 of 18 December 2012 (OJ L 48 21.2.2013, p.1) 
8 Commission Delegated Regulation (EU) No 1421/2013 of 30 October 2013 (OJ L 355, 31.12.2013, p. 1) 
9 Idem as 8 
10 Commission Delegated Regulation (EU) No 1015/2014 of 22 July 2014 (OJ L 283, 27.9.2014, p.20) 
11 Commission Delegated Regulation (EU) No 1016/2014 of 22 July 2014 (OJ L 283, 27.9.2014, p.23) 
12 *until 31 December 2015, Commission Delegated Regulation (EU) No 1015/2014; ** until 31 December 

2016, Commission Delegated Regulation (EU) 2015/1979 (OJ L 289/3, 5.11.2015, p.3) 

13  The  product  graduation  thresholds  in  Annex  VI  to  the  GSP  Regulation  were  changed  by  Commission 

Delegated Regulation (EU) 2015/1978 of 28 August 2015 (OJ L 289/1, 5.11.2015, p.1) 

14  The  vulnerability  threshold  in  Annex  VII  to  the  GSP  Regulation  used  to  assess  the  integration  of 
applicant  countries  was  increased  from  2%  to  6.5%  by  Commission  Delegated  Regulation  (EU)  
2015/602 of 9 February 2015 (OJ L 100/8, 17.4.2015, p.8) 

5 

 
 
 
 
                                                 
 
Fig. 3 - Total imports (inlcuding non-GSP imports) to the EU from 
all GSP beneficiaries, 2014 (including China) (thousand EUR) 

Bangladesh  
12.328.706 
2,4% 

Iraq  
11.553.071 
2,2% 

Ukraine  
13.170.064 
2,6% 

All others 
76.440.979 
14,8% 

Indonesia  
14.320.421 
2,8% 

Vietnam  
22.119.300 
4,3% 

Nigeria  
28.119.516 
5,5% 

India  
36.830.085 
7,1% 

China 
300.666.716 
58,3% 

Fig. 4 - Total imports (including non-GSP imports) to the EU from 
all GSP beneficiaries, 2014 (excluding China) (thousand EUR) 

Peru  
4,766,616. 
2.2% 

Pakistan  
5,492,705 
2.6% 

All others 
43.165.286 
20,1% 

India  
36.830.085 
17,1% 

Nigeria  
28.119.516 
13,1% 

Vietnam  
22.119.300 
10,3% 

Indonesia  
14.320.421 
6,7% 

Philippines 
5,717,364 
2.7% 
Colombia  
7.912.146 
3,7% 

Angola  
9.386.861 
4,4% 

Iraq  
11.553.071 
5,4% 

Bangladesh  
12.328.706 
5,7% 

Ukraine  
13.170.064 
6,1% 

Once every three years, the list of product sections originating in a Standard GSP country 
that  becomes  too  competitive  (and  for  which  therefore  preferences  are  suspended)  is 
reviewed15. The next list will apply from 1 January 2017.  

15 The current list of graduated product sections is set in Commission Implementing Regulation (EU) No 

1213/2012 of 17 December 2012 (OJ L 348, 18.12.2012, p.11) 

6 

 
 
  
 
 
 
                                                 
Table 2 below16 contains the value of total, eligible and preferential imports17 to the EU 
by Standard GSP country. The eligible imports have slightly decreased (from EUR 43.5 
billion in 2013 to EUR 38.7 billion in 2014) despite the small increase in total imports. 
Moreover,  the  general  utilisation  rate  in  2014  was  70.3%,  slightly  down  from  71.5%  a 
year earlier. Utilisation rate varies substantially from country to country. Figure 5 below 
shows  that  India  is  by  far  the  biggest  user  of  Standard  GSP,  followed  by  Vietnam  and 
Indonesia. In 2014, these three beneficiaries together accounted for 87.8% of all imports 
where Standard GSP preferences have been used.  

Fig. 5 - Standard GSP Preferential Imports to the EU, 2014  
(thousand EUR)  

Ukraine 
1.429.322 
5,2% 

Sri Lanka 
1.191.707 
4,4% 

All others 
699.493 
2,6% 

Indonesia 
4.338.522 
15,9% 

Vietnam 
5.225.357 
19,2% 

India 
14.384.167 
52,7% 

16 See Section 6 below 
17 Eligible and total imports differ because GSP does not apply to all products, only those listed in Annex 
V  to  the  GSP  Regulation,  and  because  of  product  sections  graduated  under  Article  8  of  the  GSP 
Regulation. Preferential imports are the eligible imports for which GSP preferences were actually used 

7 

 
 
 
 
 
                                                 
3.  THE EBA ARRANGEMENT 

The following 49 countries currently benefit from the EBA arrangement: 

−  Africa:  Angola,  Burkina  Faso,  Burundi,  Benin,  Chad,  Democratic  Republic  of 
Congo, Central African (Republic), Djibouti, Eritrea, Ethiopia, Gambia, Guinea, 
Equatorial  Guinea,  Guinea-Bissau,  Comoros 
Islands,  Liberia,  Lesotho, 
Madagascar,  Mali,  Mauritania,  Malawi,  Mozambique,  Niger,  Rwanda,  Sierra 
Leone,  Senegal,  Somalia,  South  Sudan,  Sudan,  Sao  Tome  and  Principe,  Togo, 
Tanzania, Uganda, Zambia  

−  Asia:  Afghanistan,  Bangladesh,  Bhutan,  Cambodia,  Lao  (People's  Democratic 

Republic), Myanmar/Burma, Nepal, Timor-Leste, Yemen   

−  Australia and Pacific: Kiribati, Samoa18, Solomon Islands, Tuvalu, Vanuatu  

−  Caribbean: Haiti. 

Table 3 below19 contains the value of total, eligible and preferential imports to the EU by 
EBA  country.  Both  the  eligible  imports  (from  EUR  17.4  billion  in  2013  to  EUR  19.5 
billion  euros  in  2014)  and  the  utilisation  rate  have  increased  (from  83.1%  to  87.1%).   
Again, utilisation rate varies substantially from country to country. Figure 6 below shows 
that Bangladesh is by far the biggest user of EBA, followed by Cambodia. In 2014, these 
two  beneficiaries  together  accounted  for  85.4%  of  all  imports  where  EBA  preferences 
have been used. 

Fig. 6 - EBA Preferential Imports to the EU, 2014  
(thousand EUR)  

Senegal  
276.634 
1,6% 

Malawi 
250.678 
1,5% 

Ethiopia 
248.206 
1,5% 

Mozambique 
292.104 
1,7% 
Myanmar 
302.330 
1,8% 

Cambodia 
2.774.642 
16,3% 

Equatorial 
Guinea 
210.479 
1,2% 

All others 
918.705 
5,4% 

Bangladesh 
11.774.829 
69,1% 

18   Until  1  January  2019,  Commission  Delegated  Regulation  (EU)  No  1979/2015.  Samoa  will  then  be  a 

standard GSP beneficiary as it is no longer identified as an LDC by the UN 

19 See Section 6 below 

8 

 
 
 
                                                 
4.  THE GSP+ ARRANGEMENT  

4.1.  GSP+ beneficiaries 

GSP+ provides additional tariff preferences to developing countries which are vulnerable 
due  to  a  lack  of  diversification  when  exporting to  the  EU,  and  due  to  their  insufficient 
integration  within  the  international  trading  system.  The  arrangement  supports  these 
countries  in  effectively  implementing  the  27  core  international  conventions  on  human 
and labour rights, environmental protection, and good governance20.  

To  apply  for  GSP+  preferences,  a  country  is  required  to  have  already  ratified  these 
27 conventions. Moreover, GSP+ applicants must give a binding undertaking in writing21 
to  maintain  the  ratification  of  these  conventions,  and  to  effectively  implement  them. 
Applicants  must  also  accept  these  conventions'  reporting  and  monitoring  requirements 
without reservation, and must agree to co-operate with the EU monitoring procedure led 
by the European Commission. 

The  reporting  period  2014-2015  covers  a  total  of  14  GSP+  beneficiaries22.  Armenia, 
Bolivia, Cape Verde, Costa Rica, Ecuador23, Georgia, Mongolia, Pakistan, Paraguay and 
Peru were granted GSP+ status on 1 January 201424. El Salvador, Guatemala and Panama 
were  granted  GSP+  status  from  28  February  201425,  and  the  Philippines  from  25 
December 201426.  

Costa  Rica,  Guatemala,  El  Salvador,  Panama  and  Peru  have  ceased  to  be  GSP/GSP+27 
beneficiaries from 1 January 2016, as they benefit from preferential market access under 
bilateral trade agreements. Similarly, Georgia will cease to be a GSP/GSP+ beneficiary 
from 1 January 201728. On 25 November 2015, the Commission decided to grant GSP+ 
status  to  Kyrgyzstan29;  the  Decision  is  currently  under  review  before  the  European 
Parliament and the Council. 

Table  4  below  shows  the  value  of  total  and  preferential  imports  to  the  EU  by  GSP+ 
beneficiaries. Total GSP+ preferential imports have increased (from 5.99 billion euros in 
2013 to 6.48 billion euros in 2014). As a result of several beneficiaries starting to apply 
new  free  trade  agreements  with  the  EU30,  the  overall  utilisation  rate  declined  slightly 

20 Annex VIII of the GSP Regulation 
21 Commission Delegated Regulation (EU) No 155/2013 of 18 December 2012 (OJ L 48, 21.2.2013, p. 5) 
22 On 25 November 2015, the Commission decided to grant GSP+ status to Kyrgyzstan (C(2015) 8213). 

The Decision is currently under consideration by the Council and the European Parliament 

23  Ecuador  ceased  being  a  GSP/GSP+  beneficiary  as  from  1  January  2015.  See  Commission  Delegated 

Regulation (EU) No 1015/2014 

24 Commission Delegated Regulation (EU) No 1/2014 of 28 August 2013 (OJ L 1, 4.1.2014, p. 1) 
25 Commission Delegated Regulation (EU) No 182/2014 of 17 December 2013 (OJ L 57/1, 27.2.2014, p.1) 
26 Commission Delegated Regulation (EU) No 1386/2014 of 19 August 2014 (OJ L 369/33, 24.12.2014, 

p.33) 

27 Commission Delegated Regulation (EU) No 1015/2014 
28 Commission Delegated Regulation (EU) 2015/1979 
29 (C(2015) 8213) 
30 The EU-Central America Association Agreement, the EU-Peru Free Trade Agreement 

9 

 
 
                                                 
(from  69.7%  in  2013  to  66.1%  in  2014).  Given  these  newly  available  market  access 
arrangements,  utilisation  rate  varied  significantly  by  country.  As  shown  in  Figure  7 
below,  in  2014,  Pakistan  and  the  Philippines  together  accounted  for  87.8%  of  GSP+ 
preferential imports.  

Fig. 7 - GSP+ Preferential Imports to the EU, 2014  
(thousand EUR)  

Costa Rica 
159.623 
2,5% 

Peru 
188.435 
2,9% 

Georgia 
106.428 
1,6% 

Bolivia 
101.928 
1,6% 

Paraguay 
69.227 
1,1% 

All others 
164.012 
2,5% 

Philippines 
1.149.929 
17,7% 

Pakistan 
4.540.342 
70,1% 

4.2.  GSP+ monitoring  

4.2.1.  Purpose and objective of GSP+ monitoring 

The  GSP+  scheme  is  an  incentive-based  tool  that  seeks  to  support  beneficiaries  to 
effectively implement the 27 international conventions. As set out in the GSP Regulation, 
the initial lifetime of the GSP+ is 10 years (i.e. it will apply until 31 December 202331). 
This is a long-term process. The shortcomings which hamper effective implementation of 
the  conventions  often  relate  to  issues  which  require  mid-to-long  term  solutions.  GSP+ 
conventions cover a large field of issues such as human and labour rights, protection of 
the environment, climate change, and the fight against drugs and corruption. Moreover, 
shortcomings  are  often  the  result  of  a  range  of  complex  and  interconnected  issues, 
encompassing  social,  cultural,  historical,  security  or  economic  developments.  As 
developing  countries,  all  beneficiaries  are  expected  to  experience  challenges  with 
implementation, especially in the short-to-medium term.  

In  light  of  the  above,  the  reformed  GSP+  monitoring  provides  a  strong  incentive  for 
GSP+  beneficiaries  to  improve  their  implementation  and  reporting.  This  requires 
commitment  not  just  in  the  short-term,  but  in  the  medium-  and  long-term,  which  the 
GSP+ monitoring seeks to reflect in full.  

31 Article 43(3) of the GSP Regulation. The expiry date does not apply to the EBA regime which is open-

ended 

10 

 
 
 
 
                                                 
4.2.2.  Promoting international standards  

GSP+  fits  the  EU's  commitment  to  upholding  and  strengthening  the  implementation  of 
international law, as enshrined in the Treaty on European Union. It seeks to ensure that 
beneficiaries  fulfil  their  commitments  arising  from  their  ratification  of  international 
conventions. The GSP+ scheme does not require beneficiaries to adopt or implement EU 
standards – rather, beneficiaries are required to meet obligations they have already agreed 
to under these international conventions.  

The  Commission  therefore  aims  to  increasingly  engage  with  the  relevant  international 
organisations  (e.g.  International  Labour  Organisation  ('ILO')  and  the  United  Nations 
('UN')) to ensure that GSP+ monitoring and evaluation by the EU continuously takes into 
account their views and experiences. Close contact with international organisations' local 
offices in the beneficiary countries is important. 

This  engagement  is  especially  important  given  the  long  reporting  cycle  of  many  of  the 
conventions listed in Annex VIII of the GSP+ Regulation. For example, UN reports are 
issued  every  4-5  years,  which  is  a  longer  interval  than  the  two-year  GSP+  reporting 
cycle.  Active  engagement  with  the  relevant  international  organisations  is  therefore 
particularly beneficial between reporting cycles.  

Furthermore,  the  expertise  of  these  organisations  can  be  very  useful  for  cooperation 
projects in beneficiary countries. The Commission and the ILO are currently launching a 
GSP+  pilot  project  on  capacity-building  in  Pakistan,  Mongolia,  Guatemala  and  El 
Salvador. The Commission will continue to work closely with international organisations 
over the lifetime of the GSP+, including through specific projects.  

Lastly, the GSP+ enables the EU to constructively discuss beneficiaries' commitments to 
these  conventions  within  the  relevant  international  organisations,  such  as  the  ILO 
Tripartite Committee on the Application of Standards or the ILO Governing Body.  

4.2.3.  The GSP+ monitoring process 

The  GSP  Regulation  requires  enhanced  EU  monitoring  of  GSP+  beneficiaries' 
compliance  with  their  commitments.  Together  with  the  European  External  Action 
Service ('EEAS'), the Commission services have therefore set up a structured monitoring 
process: an ongoing 'GSP+ dialogue' with the beneficiary authorities, formalised through 
annual lists of issues ('scorecards').  

As a beneficiary enters the GSP+, the Commission compiles an initial assessment of the 
beneficiary's  compliance  with  its  GSP+  commitments  (the  first  formal  scorecard).  This 
formal  scorecard  notes  the  salient  shortcomings  identified  by  the  international 
conventions'  monitoring  bodies.  This  begins  the  ongoing  GSP+  dialogue,  during  which 
the Commission draws the beneficiary's attention to the areas listed in the scorecard.  

Whenever  possible,  the  dialogue  makes  use  of  existing  political  and  institutional  links 
between  the  EU  and  beneficiaries32.  The  list  of  issues  is  updated  annually,  and 

32 Due to the differing goals pursued under each of the 27 conventions, GSP+ cuts across a number of areas 
which traditionally fall outside trade policy such as human rights, development, labour, environment etc. 
These  policy  areas  fall  within  the  competence  of  different  Commission  services  and  the  EEAS.  As  a 
result,  GSP+  issues  have  been  raised  in  existing  bilateral  dialogues  with  beneficiaries  under  different 
formats such as, for example, trade dialogues, human rights dialogues, Joint Commissions etc. 

11 

 
 
                                                 
beneficiaries are expected to demonstrate serious efforts towards tackling the identified 
problems. 

In  line  with  the  GSP  Regulation,  the  GSP+  monitoring  process  takes  into  account  the 
views  from  a  wide  range  of  sources  beyond  the  international  conventions'  monitoring 
bodies, including civil society, social partners, the European Parliament and the Council. 
A wide range of stakeholders are also involved in the beneficiary countries – not just the 
central  government,  but  local  or  regional  authorities,  civil  society  (e.g.  social  partners, 
non-governmental organisations), business associations, and local offices of international 
organisations.  

As part  of its  monitoring, the Commission  may participate in  local workshops,  or  field 
visits  to  industries.  Reaching  out  to  local  stakeholders,  particularly  during  GSP+ 
monitoring  visits,  is  important  not  only  to  gather  first-hand  information,  but  also  to 
improve  understanding  of  how  the  GSP+  works,  and  of  the  EU's  expectations  of 
beneficiaries. This helps local stakeholders to play a constructive role in assisting local, 
regional  and  central  authorities  to  meet  their  commitments  under  the  conventions.  In 
particular, as direct beneficiaries of tariff preferences, economic operators are expected to 
play a key role in supporting implementation of the conventions. 

During  this  first  reporting  period,  interaction  with  civil  society  in  beneficiary  countries 
has  been  very  positive.  Civil  society  has  generally  expressed  strong  support  for  the 
participation  of  their  country  in  the  GSP+  scheme.  On  several  occasions,  it  has 
specifically  welcomed  GSP+  monitoring,  and  the  enhanced  possibility  it  offers  to  raise 
key  human  and  labour  rights  issues  with  authorities.  The  Commission  will  therefore 
continue  engagement  with  local  stakeholders  during  monitoring,  and  seek  to  expand  it 
where possible. 

4.2.4.  Assistance and development projects 

International monitoring body reports – the key source for the scorecards – identify not 
only shortcomings and elements of progress, but also the constraints which may impede 
or prevent a beneficiary from implementing a convention. This is important, as a number 
of these constraints may not be within the control or direct sphere of influence of public 
authorities, which may explain some of the shortcomings. While it is clear that a state has 
the  responsibility  to  fully  meet  its  international  commitments,  Commission  monitoring 
should take into account factors such as lack of resources, poverty, natural disasters, or 
lack  of  control  over  certain  areas  in  situations  of  armed  conflict.  In  2015,  the 
Commission  has  launched  joint  projects  with  the  ILO  to  support  GSP+  countries 
administrative  capacity  to  effectively  implement  and  report  on  the  fundamental  ILO 
conventions.  Over  the  next  reporting  period,  the  Commission  will  continue  to  consider 
ways of supporting beneficiaries to address such constraints through expertise, technical 
assistance and specific projects on capacity-building. 

4.2.5.  Beneficiaries' internal organisation on GSP+ 

The way beneficiaries organised themselves to address the issues covered by the GSP+ 
conventions provided a first indication of political commitment to the GSP+ process. The 
conventions  often  span  the  competences  of  different  government  departments  and 
agencies, which may have varying levels of resources and leverage.  

12 

 
 
Beneficiaries  must  therefore  coordinate  at  both  the  central  and  local  government  level. 
Some beneficiaries opted to set up specific GSP+ task forces led by high-level officials 
(e.g.  Pakistan),  while  others  preferred  to  coordinate  on  an  ad  hoc  basis  under  the 
Ministry of Trade or Foreign Affairs (e.g. Philippines, Guatemala). It is anticipated that 
over  time  this  coordination  will  become  more  efficient.  GSP+  monitoring  visits  by  the 
Commission,  with  the  help  of  EU  Delegations,  have  proven  to  be  beneficial  in  this 
respect33.  Beneficiaries'  coordination  efforts  on  the  GSP+  and  the  relevant  conventions 
are  an  important  and  necessary  tool  for  improving  implementation  on  the  ground.  The 
Commission will therefore continue to pay close attention to coordination.  

4.2.6.  Conclusions on first GSP+ monitoring period (2014-2015)  

As outlined above, monitoring begins upon each beneficiary's entry to the GSP+ scheme. 
An  overview  of  shortcomings  for  each  of  the  GSP+  conventions,  as  presented  by  the 
international  monitoring  bodies,  sets  the  baseline  for  the  on-going  monitoring  of  each 
beneficiary.  Beneficiaries  are  expected  to  demonstrate  serious  efforts  in  improving 
implementation  of  the  27  core  conventions  and  in  addressing  those  shortcomings. 
Monitoring  covers  all  aspects  of  the  implementation  of  the  27  conventions,  including 
discussions on capacity constraints or on progress. Furthermore, GSP+ monitoring takes 
into account the pre-existing legal and administrative framework in beneficiary countries, 
as part of the baseline. 

The  first  monitoring  period  was  a  learning  process  for  all  beneficiaries,  and  for  the 
Commission. Nevertheless, all beneficiaries have shown strong commitment to the GSP+ 
process,  both  in  terms  of  political  will  and  in  introducing  institutional  and  legislative 
reforms.  In  particular,  beneficiaries  have  demonstrated  a  genuine  level  of  engagement 
with  the  Commission  by  responding  in  time  to  the  annual  scorecard  documents,  by 
allowing  specific GSP+  monitoring visits,  and by setting up specific  GSP+ governance 
structures. Moreover, all beneficiaries have taken steps – albeit sometimes incremental – 
towards  improving  implementation  of  their  commitments  under  the  GSP+  conventions 
on the ground, including by submitting several overdue country reports.  

The  attached  Staff  Working  Document  provides  a  comprehensive  assessment  of 
individual beneficiaries including positive developments and domestic constraints, which 
may  limit  beneficiaries'  ability  to  achieve  effective  implementation.  An  assessment  is 
made for each convention individually, with an overall assessment per convention cluster 
(human  rights,  labour  rights,  environment,  good  governance).  At  this  stage,  given  the 
diverse  nature  of  the  27  GSP+  core  conventions  and  the  short  timeframe  of  the  first 
reporting  period  (18  months),  it  was  not  considered  appropriate  or  realistic  to  quantify 
progress beyond obvious benchmarks (e.g. timely submission of national reports). Trying 
to  attach  a  standardised,  quantifiable  value  to  beneficiaries’  performance  could  be 
misleading and, to some extent, arbitrary.  

Monitoring  tools  will,  however,  continue  to  be  refined.  In  particular,  over  the  next 
reporting period it will be important that beneficiaries take ownership of the process and 
are more proactive in addressing the issues in the scorecards. The Commission will pay 
more  attention  to  beneficiaries'  own  priorities  for  action,  their  timelines  for  addressing 
shortcomings,  and  to  the  resources  made  available  for  implementation.  In  this  respect, 

33   It  can  also  contribute  to  strengthen  involvement  and position of  line  ministries and  agencies,  such  as 

labour and environment 

13 

 
 
                                                 
the  Commission  will  enhance  its  engagement  with  beneficiaries,  with  a  view  to 
identifying priorities for action. 

Indeed,  here  lies  the  main  rationale  of  the  reformed  GSP+.  After  ensuring  full 
compliance  with  the  entry  criteria,  the  GSP+  accompanies  beneficiaries  with  trade 
incentives,  through  a  progressive  improvement  of  their  implementation  of  the  relevant 
conventions.  GSP+ beneficiaries are, therefore, expected to continuously improve their 
track  record.  Nonetheless  the  individual  circumstances  and  constraints  of  beneficiaries 
will  be  taken  into  account.  In  this  respect,  the  GSP  Regulation  provides  that  if  a 
beneficiary  does  not  respect  its  binding  undertaking,  preferences  may  be  temporarily 
withdrawn34.  

Over  the  next  reporting  period  (2016-2017),  the  Commission  will  continue  to  monitor 
beneficiaries in a structured way. By the next review, it will consider response actions, if 
required,  including  the  possibility  to  open  an  investigation  should  a  beneficiary  fail  to 
comply with its GSP+ undertaking. 

4.2.7.  Accompanying this Report: Staff Working Document on the GSP+ 

The GSP Regulation requires that this report takes a particular focus on the functioning 
of  the  GSP+.  This  report  is  therefore  accompanied  by  a  Staff  Working  Document 
('SWD')  on  The  EU  Special  Incentive  Arrangement  for  Sustainable  Development  and 
Good  Governance  ('GSP+')  covering  the  period  2014  –  2015,  which  has  been  jointly 
prepared  by  the  Commission  services  and  the  European  External  Action  Service 
('EEAS').  

The  SWD  provides  greater  detail  on  the  functioning  of  the  GSP+  since  the  GSP 
Regulation  978/2012  came  into  force  on  1  January  2014.  The  SWD  also  includes  a 
detailed  assessment  of  individual  GSP+  beneficiaries  under  the  GSP+  conventions  and 
reports on the utilisation of the GSP+ among the beneficiary countries.   

5.  FUTURE COMMISSION REPORTS 

The  GSP  Regulation  requires  the  Commission  to  submit  a  report  to  the  European 
Parliament and to the Council on the application of the GSP Regulation five years after 
the entry into force of the GSP Regulation, i.e. by November 2017. This will reflect on 
the  whole  GSP  scheme  over  the  five-year  period,  from  2012  to  2017.  It  will  take  into 
account the implications of the scheme for the development, trade and financial needs of 
its  beneficiaries.  The  Commission  will  also  assess  the  need  to  review  the  scheme, 
including  the  GSP+  and  temporary  withdrawal  provisions  of  tariff  preferences,  where 
appropriate  accompanied  by  a  legislative  proposal.  Furthermore,  the  report  will  also 
include a detailed analysis of the impact of the GSP Regulation on trade and on the EU’s 
tariff income, with particular attention to the effects on beneficiary countries. Lastly, this 
report,  published  by  November  2017,  will  also  cover  specific  developments  during  the 
second GSP+ reporting cycle (2016-2017). 

34 Article 15 of the GSP Regulation 

14 

 
 
                                                 
6.  TABLES WITH STATISTICAL INFORMATION COVERING COUNTRIES BENEFITING FROM GSP ON 1 DECEMBER 2015  

Table 1 – Value of preferential imports for all GSP countries (thousand EUR) 

15 

Total importsGSPeligible importsGSP preferential importsUtilisat rateTotal importsGSPeligible importsGSP preferential importsUtilisat rateTotal importsGSPeligible importsGSP preferential importsUtilisat rateStandard GSP152,702,55143,496,03231,084,84171.5%153,181,03438,776,16227,268,56970.3%75,696,89223,706,78915,537,59965.5%GSP+22,733,9778,596,4435,989,21969.7%23,703,7269,805,8766,479,92366.1%12,018,0575,694,9673,517,87461.8%EBA36,213,86817,418,14214,466,19183.1%37,997,00419,567,19817,048,60787.1%19,495,86411,678,49510,817,57292.6%All GSP211,650,39669,510,61851,540,25174.1%214,881,76468,149,23550,797,10074.5%107,210,81441,080,25129,873,04572.7%201320142015 - first 6 months 
 
 
 
 
Table 2 – Value of preferential imports to the EU by Standard GSP country (thousand EUR) 

16 

Total importsGSP eligible importsGSP preferential importsUtilisat rateTotal importsGSP eligible importsGSP preferential importsUtilisat rateTotal importsGSP eligible importsGSP preferential importsUtilisat rate152,702,55143,496,03231,084,84171.5%153,181,03438,776,16227,268,56970.3%75,696,89223,706,78915,537,59965.5%Botswana 3,441,19516200.0%1,822,6002900.0%902,849920.0%Cameroon 2,368,669137,8037740.6%2,148,93032,279390.1%786,64073,43414,17419.3%Colombia 7,387,566573,453514,91189.8%7,912,148637,55587,81813.8%3,458,487291,2557,3902.5%Congo1,373,83967,97448,15870.8%1,530,57483,21067,25780.8%881,50925,70222,71988.4%Cook Islands2,29014600.0%1,497946164.6%2,801250.0%Côte d'Ivoire 3,285,353994,1633,3400.3%3,243,973319,4423660.1%1,787,465504,4081,6940.3%Fiji82,5013,4882136.1%97,8101,30230.2%33,0932,59233613.0%Ghana 3,336,336488,8853,5730.7%2,846,769149,7171270.1%1,028,990245,0893980.2%Honduras 726,892233,986176,47075.4%839,946328,01228,7048.8%637,493167,2251230.1%India 36,436,34022,298,12418,589,57783.4%36,830,32216,138,35214,384,16789.1%20,274,6749,822,9738,536,40486.9%Indonesia 14,180,2126,585,0354,823,28773.2%14,320,3896,085,3854,338,52271.3%7,546,2723,534,0202,391,81467.7%Iraq 10,618,9923,621481.3%11,553,0716,0051462.4%5,441,8692,96545315.3%Kenya 1,132,251727,2487,0831.0%1,164,317190,850129,18767.7%671,933433,65012,0052.8%Kyrgyzstan77,3444,1001,09826.8%78,10311,9428,23368.9%26,8314,4672,22549.8%Marshall Ils92,50183700.0%310,36838900.0%116,3842940.0%Micronesia 23022420490.9%35114112789.9%2992885217.9%Namibia 940,257326,416600.0%961,84662,90310.0%545,632163,7251430.1%Nauru 23815200.0%4642800.0%4221550.0%Nicaragua 280,704122,35656,80646.4%282,693139,6101,1330.8%141,27346,5925981.3%Nigeria 28,595,038493,253407,79582.7%28,119,517206,224135,31265.6%9,608,38449,63529,24458.9%Niue600n/a12710800.0%2530.0%Sri Lanka 2,314,5281,846,6581,096,51159.4%2,481,0902,026,2971,191,70758.8%1,294,5861,084,020580,76653.6%Swaziland 224,47917,0178525.0%150,7544,845461.0%68,7297,486981.3%Syria124,50546,0558,30918.0%86,69624,6183,43614.0%45,2036,9701,02014.6%Tajikistan 83,05414,74811,70979.4%60,86214,89310,57171.0%31,0817,2766,12984.2%Tonga 174331545.6%906715475.7%243372361.7%Turkmenistan 863,617163,361156,39795.7%813,797241,678167,12369.2%182,23628,43323,22181.7%Ukraine 13,295,3832,972,4542,159,28672.6%13,169,4012,970,1221,429,32248.1%5,931,3641,697,150686,93140.5%Uzbekistan 245,77986,44173,47685.0%232,59074,95959,74879.7%111,42335,87126,68874.4%Vietnam 21,192,2785,287,8392,944,88955.7%22,119,1229,025,1005,225,35757.9%14,138,7015,470,9523,192,95058.4%201320142015 - first 6 monthsStandard GSP 
 
 
Table 3 – Value of preferential imports to the EU by EBA country (thousand EUR)* 

* 'Total imports' covers all imports, including products which automatically benefit from most-favoured nation ('MFN') zero tariffs. 'EBA eligible imports' only references the products under the EBA scheme, which do not otherwise 
benefit from MFN zero duty.  

17 

Total importsEBA eligible importsEBA preferential importsUtilisat rateTotal importsEBA eligible importsEBA preferential importsUtilisat rateTotal importsEBA eligible importsEBA preferential importsUtilisat rate36,213,86817,418,14214,466,19183.1%37,997,00419,567,19817,048,60787.1%19,495,86411,678,49510,817,57292.6%Afghanistan 47,6757,4233,08341.5%36,95416,9146,94841.1%12,5992,7771,90268.5%Angola 9,306,19571,22526,45237.1%9,386,86247,96720,93743.6%3,728,69112,9944,01630.9%Bangladesh 10,862,33810,778,86210,313,71695.7%12,328,75712,224,84811,774,82996.3%7,553,3437,501,1897,201,60896.0%Benin 16,6693,2452,58479.6%31,10411,86210,96292.4%13,2124,4321,98144.7%Bhutan 10,2679,3689,27899.0%14,94014,66014,33197.7%8,5178,0797,69995.3%Burkina Faso45,0208,0926,91185.4%107,45110,9329,85390.1%26,4135,6744,75083.7%Burundi 31,63368500.0%21,4204158620.6%20,70423220086.3%Cambodia 2,514,4072,492,0592,301,70892.4%3,026,4222,996,8982,774,64292.6%1,849,7141,788,8411,644,44291.9%Central African Republic26,06135729081.2%6,30218015787.5%6,0562512.7%Chad 50,3882305423.5%14,88227700.0%32,9922290.0%Comoros13,4448,6862262.6%10,8086,7701,28319.0%5,1012,7592,61794.9%Congo Democratic Republic of1,095,28714,52412,92989.0%1,002,9927,9046,11677.4%295,8994,8702,77056.9%Djibouti 9,1522,31700.0%10,2213,767621.6%8,0991,45215710.8%Equatorial Guinea 4,029,109375,025335,59089.5%3,650,206224,738210,47993.7%1,029,83121,25016,19976.2%Eritrea 3,1482,3832,25894.8%9,7322,5062,33793.2%21,2511,20195379.3%Ethiopia 541,853229,259223,59697.5%571,312252,473248,20698.3%335,209135,981129,86595.5%Gambia 8,4835,0644,99998.7%17,7079,2538,55692.5%10,0056,7566,58397.4%Guinea 438,6652,27226711.7%454,3301,61365440.5%361,3381,11942738.1%Guinea-Bissau 1,47312186.6%3,346800.0%8802840.0%Haiti 28,03315,9644322.7%31,45117,6223,32018.8%19,28110,1738,96588.1%Kiribati 5942614.0%53322576.8%101300.0%Lao People's Democratic Republic252,500193,309190,01098.3%223,233194,615190,03397.6%117,03389,64985,48895.4%Lesotho 186,4671,40132223.0%247,3831,47148432.9%123,87973146563.7%Liberia 530,3822,57066325.8%366,3903,82942311.1%228,9952240.0%Madagascar 736,262554,97519,4123.5%834,933539,80321,1973.9%416,318240,7121,7110.7%Malawi 220,267188,851181,41596.1%296,049266,569250,67894.0%176,838160,553150,49593.7%Mali 41,5913,8912,35760.6%35,9054,2893,59683.9%24,4962,0501,51373.8%Mauritania 486,001113,290110,75597.8%548,518172,242164,31995.4%264,214116,913109,06593.3%Mozambique 1,315,1331,116,03851,0484.6%1,361,1901,143,230292,10425.6%761,489648,403597,01392.1%201320142015 - first 6 monthsEBA 
 
 
Table 3 (continuation) – Value of preferential imports to the EU by EBA country (thousand EUR) 

18 

Total importsEBA eligible importsEBA preferential importsUtilisat rateTotal importsEBA eligible importsEBA preferential importsUtilisat rateTotal importsEBA eligible importsEBA preferential importsUtilisat rate36,213,86817,418,14214,466,19183.1%37,997,00419,567,19817,048,60787.1%19,495,86411,678,49510,817,57292.6%Myanmar 220,609167,55283,05049.6%388,369318,171302,33095.0%270,683225,294205,44191.2%Nepal 84,50575,97670,91193.3%86,75677,39771,65092.6%42,26837,13934,31792.4%Niger 597,7103,2052,55079.5%386,5003,1051,92562.0%280,0481,27998176.7%Rwanda 26,44241000.0%30,21441810725.7%18,09538923861.1%Samoa 47942327865.7%1,09672016623.0%1,5091,15511510.0%Sao Tomé and Principe4,36619011258.8%8,02817411264.4%3,737292068.5%Senegal 330,248219,293214,22097.7%400,201281,098276,63498.4%235,872177,098166,14693.8%Sierra Leone 168,3993,5292,08459.1%220,4464387918.0%126,5301,8541,70992.2%Solomon Islands48,21147,42247,35799.9%63,03162,05561,95099.8%14,55514,32114,11798.6%Somalia 1,8282700.0%2,57312264.7%3,642650.0%South Soudan71900.0%1183200.0%85210.0%Sudan 180,10968,60465,69495.8%205,069107,612101,04893.9%113,64050,13449,37398.5%Tanzania542,153237,32158,41524.6%600,050280,962118,43442.2%425,619218,211212,02697.2%Timor-Leste6,94313900.0%11,9795423.0%3,752180.0%Togo 149,84162,40913,50821.6%85,22420,20819,11094.6%37,51215,80014,25590.2%Tuvalu 2632117334.7%84347400.0%2371080.0%Uganda 426,363147,2823,0262.1%451,484149,79631,34620.9%261,69588,02985,45497.1%Vanuatu 92620117084.6%8,51840233483.1%1,4643599125.5%Yemen 185,99681,06780,04598.7%84,55410,4688,26879.0%12,7905,0421,70233.7%Zambia 390,444101,34424,32924.0%311,09675,80238,49150.8%189,63472,57250,70669.9%201320142015 - first 6 monthsEBA 
 
 
Table 4 – Value of preferential imports to the EU by GSP+ country (thousand EUR)* 

* Costa Rica, Guatemala, El Salvador, Panama, and Peru will cease to be GSP+ beneficiaries from January 2016. The GSP+ imports from these countries have reduced significantly in 2014 and 2015, respectively, as these countries 
used the alternative preferences available under the EU-Central America Association Agreement. Similarly, Georgia is benefitting from the bilateral deep and comprehensive free trade agreement (DCFTA) since 2014, and usage of 
GSP+ is expected to reduce until 1 January 2017, when the country will exit the GSP+ scheme. 

19 

Total importsGSP+ eligible importsGSP+ preferential importsUtilisat rateTotal importsGSP+ eligible importsGSP+ preferential importsUtilisat rateTotal importsGSP+ eligible importsGSP+ preferential importsUtilisat rate22,733,9778,596,4435,989,21969.7%23,703,7269,805,8766,479,92366.1%12,018,0575,694,9673,517,87461.8%Armenia 215,54274,41858,23978.3%228,61681,81459,58372.8%143,50475,89658,60177.2%Bolivia 470,19569,89568,06697.4%518,500106,278101,92895.9%262,51936,67234,57394.3%Cape Verde47,89445,38843,75496.4%97,32255,78154,71398.1%27,69325,41024,58796.8%Costa Rica 4,007,151743,910637,47385.7%3,767,873872,169159,62318.3%1,256,747539,34771,39013.2%El Salvador 211,56194,96867,46271.0%169,59977,0273390.4%83,13626,5203801.4%Georgia 658,312184,891155,96884.4%649,631224,756106,42847.4%386,737149,7226,4254.3%Guatemala 610,600397,223350,22288.2%685,734342,62826,7557.8%404,921155,9596,3744.1%Mongolia 69,95216,05114,21288.5%73,28016,87614,48285.8%41,3555,7634,24273.6%Pakistan 4,506,2043,853,9322,633,86668.3%5,492,7324,762,4004,540,34295.3%3,039,0312,726,9272,575,74194.5%Panama 652,446112,49467,16959.7%436,396140,4858,1415.8%255,04176,9603,7294.8%Paraguay 1,163,16548,01943,95491.5%1,100,04672,53569,22795.4%483,22016,01713,51584.4%Peru 5,071,9231,261,292766,46360.8%4,766,6201,329,832188,43514.2%2,376,769775,09237,3174.8%Philippines5,049,0321,693,9641,082,37263.9%5,717,3781,723,2951,149,92966.7%3,257,3851,084,683681,00162.8%201320142015 - first 6 monthsGSP+