JOINT REPORT TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Report on the Generalised Scheme of Preferences covering the period 2018-2019
Date: 2020-02-10
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: EU market, common commercial policy, developing countries, development aid, generalised preferences, human rights, international convention, least-developed country, sustainable development, tariff preference

EN 

  EN 

   EUROPEAN COMMISSION HIGH REPRESENTATIVE OF THE UNION FOR FOREIGN AFFAIRS AND SECURITY POLICY Brussels, 10.2.2020 JOIN(2020) 3 final  JOINT REPORT TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Report on the Generalised Scheme of Preferences covering the period 2018-2019 {SWD(2020) 16 final} - {SWD(2020) 17 final} - {SWD(2020) 18 final} - {SWD(2020) 19 final} - {SWD(2020) 20 final} - {SWD(2020) 21 final} - {SWD(2020) 22 final} - {SWD(2020) 23 final} - {SWD(2020) 24 final} - {SWD(2020) 25 final}  
 
 
1. 

INTRODUCTION 

Through  its  Generalised  Scheme  of  Preferences  (GSP)i  the  EU  unilaterally  supports 
trade.  Trade 
developing  countries 
to  achieve  sustainable  development 
preferences  promote  universal  values  of  human  rights,  core 
labour  standards, 
environmental protection and good governance. 

through 

This  third  biennial  report  on  GSP  is  accompanied  by  ten  Joint  (European 
Commission  and  High  Representative  of  the  Union  for  Foreign  Affairs  and 
Security) Staff Working Documents. These provide the assessment of the performance 
of  nine  beneficiaries  of  the  GSP+  arrangement  and  of  three  beneficiaries  of  the 
Everything But Arms (EBA) arrangement under enhanced engagement.  

This report specifically covers:  

1.  The extent to which beneficiary countries take advantage of the scheme.  
2.  A  number  of  overarching  themes,  including  death  penalty,  civil  society  space, 

child labour and environment. 

3.  Partnerships: examples of how the EU works with partners to make GSP more 

effective.  

The  report  is  based  on  EU  monitoring  missions,  the  midterm  evaluation  of  GSPii,  EU 
engagement  with  partner  countries  (including  human  rights  dialogues),  international 
organisations, civil society and industry. A dedicated civil society dialogue took place on 
16 July 2019iii. 

2.  HIGHLIGHTS  

GSP beneficiaries are advancing. In the period 2018-2019, several countries graduated 
out  of  the  scheme  due  to  reaching  upper  middle-income  economy  status.  In  addition, 
EU’s  successful  negotiating  agenda  contributed  to  countries  leaving  GSP  due  to 
entering bilateral preferential arrangements with the EU. At the end of 2019, there were 
71 beneficiaries, i.e. 11 less than in the last report.  

Regarding the impact of preferences, GSP has become more important, in absolute and 
relative numbers. Despite the falling number of beneficiaries, value of imports to the EU 
from  GSP  countries  grew  by  16.2%  i.e.  from  €158  billion  in  2016  to  €183.6  billion  in 
2018  (overall  EU  imports  increased  by  13.3%).  Of  these,  €68.9  billion  were  imported 
using GSP.  

GSP  is  especially  important  for  the  poorest  countries:  the  share  of  Least  Developed 
Countries (LDCs) in EU's overall imports reached 2.2% in 2018, more than double that 
of LDC share in world imports (0.98% in 2017iv). EBA beneficiaries saw an increase of 
15.3% of their preferential exports to the EU. 

The  value  of  preferential  imports  from  African  GSP  beneficiary  countries  to  the  EU 
has increased by 17.2% and reached €3.3 billion. Mauritania increased its GSP exports 
by 62% and Senegal by 44%. Yet, the share of African GSP imports to the EU remains 
relatively  low,  accounting  for  less  than  5%,  despite  the  fact  that  38  out  of  71 
beneficiaries  are  from  Africa.  The  most  prominent  sectors  benefitting  from  GSP  are 
garments,  where  other  countries  tend  to  be  more  competitive.  As  GSP  offers 
opportunities in  many other  sectors (such  as processed food), more advantage could  be 

1 

 
 
 
 
 
taken.  The  lack  of  awareness  of  the  scheme  and  factors  restricting  export  capacities  of 
African companies play a role too.   

Utilisation  of  trade  preferences  under  GSP  has  gone  up  to  81.8%  in  2018  (78.8%  in 
2016).  For  EBA,  this  was  93.4%.  Benefits  taken  are  largely  in  the  garment  sector,  as 
export diversification remains a challenge.  

EU  importers  and  industry  present  in  the  GSP  beneficiary  countries  support  the 
sustainable  development  agenda  and  can  play  a  positive  role,  notably  in  promoting 
labour reforms  and occupational  health and safety. Exporting industries, for instance in 
Pakistan,  Bangladesh,  Myanmar,  and  Sri  Lanka  are  keen  to  meet  international 
standards.  This  is  a  direct  result  of  (European)  buyers  insisting  on  responsible  supply 
chains, and has a broader impact on the countries.  

GSP+  beneficiaries  have  made  progress  in  effective  implementation  of  the  27 
international  conventions  listed  in  the  arrangement.  They  have  also  taken 
additional  commitments.  All  GSP+  countries  have  signed  the  Paris  Agreement, 
sometimes  responding  to  requests  from  GSP+  monitoring  missions  (Philippines). 
Armenia signed the Second Optional Protocol to the UN International Covenant on Civil 
and  Political  Rights  (ICCPR),  effectively  abolishing  the  death  penalty,  and  to  the 
Convention on the Rights of Persons with Disabilities (CRPD).  

On child labour, Mongolia agreed to conduct a child labour survey following a recent 
monitoring mission. A countrywide survey on child labour is carried out in Pakistan. Sri 
Lanka  was  able  to  bring  child  labour  down  from  16%  to  1%,  n,  through  pioneering 
‘Child Labour Free Zones’. Meanwhile, Bolivia raised the minimum age for work to the 
international minimum standard of 14 years. Cabo Verde made progress in criminalising 
the  use  and  facilitation  of  minors  for  prostitution  and  sexual  exploitation.  Paraguay 
adopted a national strategy to eradicate child labour by 2024.  

Beneficiaries maintain  commitments also  after they have left GSP.  For example, in 
2019 Paraguay issued – after it exited from GSP - its voluntary mid-term report on the 
implementation  of  the  recommendations  of  the  Universal  Periodic  Review  of  the  UN 
Human Rights Council.  

In some countries, commitments are taken before they apply for GSP+: on 14 October 
2019,  Uzbekistan  adopted  a  law  on  accession  to  the  Cartagena  Biosafety  Protocol,  as 
part of its agenda to apply for GSP+.  

Yet,  challenges  related  to  compliance  with  GSP  requirements  remain:  civil  society 
space is shrinking, notably in Pakistan and the Philippines. Calls for (implementation 
of) capital punishment have become louder, including in Sri Lanka, Mongolia and the 
Philippines.  Most  beneficiaries  face  challenges  when  it  comes  to  freedom  of 
association.  

Countries  that  are  unwilling  to  address  and  engage  on  issues  of  concern  are  being 
scrutinised.  Through  enhanced  engagement,  the  EU  intensified  the  dialogue  with 
Bangladesh, Cambodia and Myanmar to press for concrete actions on and sustainable 
solutions to serious shortcomings in respecting fundamental human and labour rights.  

Engagement with each of the countries follows a different track:  

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The engagement with Bangladesh focuses on compliance with ILO Conventions. During 
an  EU  monitoring  mission  in  October  2019,  the  authorities  of  Bangladesh  agreed  to 
develop  a  roadmap  with  timelines  aiming  to  improving  labour  rights,  notably  the 
alignment of the Bangladesh Labour Act and the Export Processing Zone-Act. 

With regard to  Myanmar,  concerns related to  human and labour rights  were discussed 
during high level monitoring missions in October 2018 and February 2019. Discussions 
continued during the first ever EU-Myanmar Senior Officials Meeting in May 2019 and 
the EU-Myanmar human rights dialogue co-chaired by the EU Special Representative for 
Human Rights in June 2019. 

Lack  of  results  in  Cambodia  on  human  and  labour  rights  led  to  the  launch  of  the 
procedure for temporary withdrawal of tariff preferences. 

3.  DEVELOPMENTS SINCE THE LAST REPORT  

The Generalized Scheme of Preferences consists of three arrangements:  

Under  the  general  GSP  arrangement  the  EU  grants  tariff  reductions  for  products 
covered by around 66% of tariff lines and originating from low-income or lower-middle 
income countries, which do not benefit from other preferential access to the EU market.  

For  countries  benefiting  from  the  special  incentive  arrangement  for  sustainable 
development  and  good  governance  (GSP+)  the  EU  eliminates  tariffs  for  products 
covered essentially by the same tariff lines. 

Under  the  Everything  But  Arms  (EBA)  arrangement,  the  EU  grants  duty-free,  quota-
free  access  for  all  imported  products  except  arms  and  ammunition  from  countries 
classified  by  the  UN  as  Least  Developed  Countries  (LDCs).  Beneficiaries  do  not  lose 
EBA status by entering into a free trade agreement (FTA) with the EU.  

3.1.  Legislative updates  

The European Commission adopted a number of legal acts related to the Regulation: 

-  Product graduation: Commission Regulation of 12 February 2019 suspended tariff 
preferences  for  a  number  of  products  for  the  period  of  2020-2022  for  three 
beneficiary countries: India, Indonesia and Kenyav. 

-  Removal of from the list of GSP beneficiaries: v GSP status was withdrawn from 
countries which reached upper middle income economy status for three consecutive 
years:  Cameroon,  Fiji,  Georgia,  Iraq,  Marshall  Islands  and  Tongavi  (1  January 
2017) and Paraguayvii (1 January 2019); 

-  Several  countries  lost  beneficiary  status  due  to  entering  into  a  preferential  trade 
agreement  with  the  EU:  Cote  d’Ivoire,  Ghana,  and Swaziland  (1 January  2019). 
Georgia (1 January 2017)viii and Ukraine (1 January 2018)ix. 

Some  countries  lost  their  EBA  preferences  because  of  graduation  from  LDC  status: 
Samoa (1 January 2019)x and Equatorial Guinea (1 January 2021)xi (in each case after 
3-year transition period from the date graduation).  

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Other legal acts related to the GSP Regulation:  

-  Commission  Implementing  Regulation  of  16  January  2019xii  imposing  safeguard 
measures  with  regard  to  imports  of  Indica  rice  originating  in  Cambodia  and 
Myanmar/Burma; 

-  Commission Implementing Decision of 11 February 2019 initiating the procedure for 

temporary withdrawal of the tariff preferences provided for Cambodiaxiii. 

3.2.  Upcoming amendments 

GSP beneficiary countries that are classified by the World Bank as upper middle-income 
their  GSP  beneficiary  status. 
economies,  during 
Accordingly,  Nauru,  Samoa  and  Tonga  will  be  removed  from  the  list  of  beneficiary 
countries from 1 January 2021.  

three  consecutive  years, 

lose 

Other  countries  were  classified  as  Upper  Middle  Income  Countries  since  2018 
(Armenia) and 2019 (Sri Lanka). Vietnam will lose GSP-beneficiary status two years 
following  the  upcoming  entry  into  force  of  the  FTA  with  the  EU.  However,  operators 
will be able to use the GSP duties if these are more favourable.  

Meanwhile, a number of LDCs are scheduled to graduate. This means removal from the 
list  of  countries  benefiting  from  EBA  following  a  transition  period  of  three  years. 
Following  this,  they  could  apply  for  GSP+,  if  conditions  are  met,  or  benefit  from  the 
general GSP arrangement. In 2023, Bhutan will graduate; to be followed by São Tomé 
and Principe; and Solomon Islands in 2024. A date for the graduation of Tuvalu and 
Kiribati  will  be  fixed  in  2021.  Bangladesh,  Lao  People’s  Democratic  Republic, 
Myanmar,  Nepal  and  Timor-Leste  could  be  recommended  for  graduation  the  same 
year. 

Two countries, which benefit from the general GSP (Tajikistan and Uzbekistan), have 
expressed an interest in joining the GSP+ arrangement.  

3.3.  Future GSP regulation 

The  current  GSP  Regulation  will  expire  on  31  December  2023.  In  order  to  allow 
economic operators and beneficiaries to adapt to a new regulation, the Commission has 
launched the preparations for the new regulation.  It  is  intended that the new regulation 
will  continue  to  pursue  the  same  policy  of  fostering  sustainable  economic,  social  and 
environmental  development  of  beneficiary  countries,  including  the  respect  for  good 
governance  and  human  rights,  with  the  primary  goal  of  eradicating  poverty.  Public 
consultations will be undertaken in 2020. 

The European Parliament adopted a non-legislative resolution on the implementation of 
the  GSP  Regulation  on  14  March  2019xiv.  The  European  Parliament  acknowledges  the 
positive impact of the GSP Regulation and makes a number of recommendations in view 
of the preparation of the future GSP regulation. In particular, the future regulation should 
encourage  diversification,  place  more  emphasis  on  improving  environmental  standards 
and enhance monitoring  

4 

 
 
 
 
4.  GSP IS WORKING: ECONOMIC BENEFITS FOR DEVELOPING COUNTRIES  

In  the  reporting  period  2018-2019,  despite  the  lower  number  of  GSP  beneficiaries,  the 
overall value of EU imports from GSP countries went up considerably from €61.3 billion 
in 2016 to €68.9 billion in 2018. €32.3 billion came from the countries benefitting from 
the  general  GSP  arrangement,  around  €9.5  billion  from  GSP+  beneficiaries  and  €27.1 
billion from EBA countriesxv.  

Figure 1. Value of imports to the EU under the three GSP arrangements 

Looking  at  total  EU  imports  (including  non-preferential)  in  the  years  2016-2018, 
imports from GSP beneficiaries increased by 16.2%. EBA countries saw their exports to 
the EU grow by 9.9%, GSP+ beneficiaries by 13.4%, and general GSP arrangement by 
18.8%. India is the GSP beneficiary with the largest share of overall imports (including 
non-preferential), followed by Vietnam, Nigeria, Bangladesh and Indonesia.  

If considering only preferential imports, Bangladesh has become the EU's number one 
GSP partner closely followed by India, Indonesia, Vietnam and Pakistan.  

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Table 1. Value of EU’s GSP imports from major beneficiaries (million €) and their 
% share in overall imports and total EU GSP imports in 2018 

In terms of product sections, the majority of imports under GSP (47.9% of €33 billion) 
remains in apparel and clothing, followed by footwear (11%), mechanical appliances 
(7%), fish products (4%), leather (3.7%) and plastics (2.7%) – see Figure 2.  

6 

GSP Beneficiary countryImports under GSP (€ M)Overall imports to EU (€ M)Share of country's GSP in its imports to EUShare of country's GSP in total GSP imports to EU% of imports as share of total EU M Bangladesh16,77617,40196.4%24.4%0.96%India16,37843,60137.6%23.8%2.41%Vietnam8,99437,53124.0%13.1%2.07%Indonesia6,61615,55742.5%9.6%0.86%Pakistan5,8856,74087.3%8.5%0.37%Cambodia4,9875,25594.9%7.2%0.29%Myanmar1,9262,18988.0%2.8%0.12%Philippines1,9157,49025.6%2.8%0.41%Sri Lanka1,3652,75549.5%2.0%0.15%Mozambique1,2191,84066.3%1.8%0.10%Senegal36754367.6%0.5%0.03%Mauritania35352367.4%0.5%0.03%Malawi26030186.6%0.4%0.02%Tanzania25647354.2%0.4%0.03%Ethiopia23664236.8%0.3%0.04%Laos18225172.6%0.3%0.01%Uganda13147127.9%0.2%0.03%Nigeria11518,7150.6%0.2%1.03% 
 
 
 
 
 
 
 
 
Figure 2. Main product sections in EU's GSP imports in 2018 

4.1.  Midterm evaluation: GSP is effective 

in 2018, the Commission submitted its report  on the application of the GSP Regulation 
to the European Parliament and the Councilxvi. This midterm evaluation shows that EU’s 
GSP  is  delivering:  it  succeeded  in  focusing  preferences  on  countries  most  in  need  and 
contributed  to  their  sustainable  development.  The  effectiveness  of  the  EU’s  GSP  has 
increased  as  a  result  of  the  monitoring  mechanism,  which  has  led  to  improvements  in 
human  and  labour  rights.  In  the  textile  and  clothing  sector,  preferential  exports  under 
EBA had a positive impact on business and job creation.  

Some recommendations and follow-up from the midterm evaluation 

  With regard to increased transparency: the Commission is considering a number of 
practical  actions  to  improve  GSP+  monitoring  and  to  further  civil  society 
involvement  and  raise  awareness  for  businesses  and  civil  society  organisations, 
including social partners. 

  To  use  the  safeguard  provisions  in  the  GSP  Regulation:  In  2019  the  EU  imposed 
safeguard measures with regard to Indica rice originating in Cambodia and Myanmar 
following investigation as set out in the GSP regulation  

  To  initiate  withdrawal  procedures  when  severe  and  systematic  violations  are 
reported  by  relevant  monitoring  bodies:  on  11  February  2019,  the  Commission 
launched  the  temporary  withdrawal  procedure  regarding  the  tariff  preferences 
provided to Cambodia.  

  To  further  enhance  cooperation  with  development  partners,  also  to  attract  more 

investment in LDCs.  

7 

 
 
 
 
5.  GSP IS CONTRIBUTING TO SUSTAINABLE DEVELOPMENT  

With regard to labour and human rights, the mid-term evaluation found effectiveness of 
GSP+  in  creating  leverage  through  both  the  GSP+  monitoring  mechanism  and  through 
the prospect  of accession (for applicant  countries).  The higher frequency and improved 
scope of the monitoring of GSP+ compliance has increased the EU leverage.  

During  the  2018-2019  reporting  period,  the  European  Commission  services  and  the 
European External Action Service (EEAS) conducted monitoring missions in  Armenia, 
Bolivia,  Kyrgyzstan,  Mongolia,  Pakistan,  the  Philippines,  and  Sri  Lanka, 
Cambodia,  Bangladesh  and  Myanmar.  Besides  the  impact  the  GSP  has  on  job 
creation,  for  which  estimates  vary  between  500,000  in  Myanmar  and    5  million  in 
Bangladesh,  the  engagement  also  meant  more  attention  for  labour  standards,  human 
rights and in the case of GSP+ - environment and good governance. 

In terms of children’s rights, there is progress: In Mongolia child rights protection acts 
were  adopted  and  budgets  increased  substantially.  Paraguay  made  efforts  to  promote 
and protect the rights of children. In Sri Lanka, child labour was brought down to 1%. In 
Bolivia, the minimum age for work was brought in line with ILO standards. In Pakistan, 
the government agreed to child labour surveys. Cabo Verde made important progress in 
criminalising sexual exploitation of minors. 

Potential backtracking on human rights is addressed. Calls to re-introduce the death 
penalty  are  worrisome.  Most  concerning  is  a  renewed  call  for  a  vote  on  a  bill  on  the 
death  penalty  in  the  Philippines.  Such  a  bill  would  go  against  the  commitments  the 
Philippines  made  under  the  Second  Optional  Protocol  to  the  ICCPR.  In  Sri  Lanka, 
statements to the effect that executions would be resumed are a cause for concern. Still, 
the  picture  is  not  only  bleak:  for  instance,  during  a  recent  GSP+  mission,  government 
officials  in  Sri  Lanka  were  confident  that  the  de  facto  moratorium  would  stand. 
Mongolia’s  own  assessment  concluded  that  the  re-introduction  of  the  death  penalty 
would  be  incompatible  with  its  international  obligations.  This  assessment  helped  to 
counter  plans  for  a  re-introduction  of  the  death  penalty.  Finally,  Pakistan  is  debating 
whether to narrow down the number of crimes punishable with the death penalty and it 
has  meanwhile  substantially  reduced  the  number  of  executions  and  reformed  the 
procedure for mercy petitions.  

In  some  countries,  civil  society  space  is  shrinking.  In  Pakistan,  a  number  of 
international  NGOs  are  being  expelled,  with  implications  on  the  freedoms  of  those 
organisations still in the country. Freedom of expression including through the media is 
under threat. In Bolivia, verbal and physical violence against human rights defenders and 
journalists are reported,  as well as  an increasing  number of  criminal  proceedings being 
brought against them. With regard to the Philippines, there is serious concern about the 
death  toll  associated  with  the  campaign  against  illegal  drugs  and  the  lack  of  effective, 
impartial and transparent investigations of all cases of death.  Civil society space is also 
shrinking due to measures taken in the context of the war on terrorism. This has led to 
increased violence against members of civil society, human rights defenders, indigenous 
peoples, journalists, and lawyers. In Cambodia, over the last three years, there has been 
a  deterioration  of  democracy,  respect  for  human  rights,  and  the  rule  of  law,  including 
shrinking space for political opposition, media and civil society. 

Armenia, on the other hand, displayed notable improvements in freedom of expression 
and assembly during the ‘Velvet Revolution’ of 2018.  

8 

 
In the area of labour rights, concerns on freedom of association remain in Sri Lanka, 
Pakistan, Bangladesh, and Myanmar. In Kyrgyzstan, adoption of a draft Trade Union 
Law would drastically limit the independence of trade unions. The Philippines Congress 
passed a Security of Tenure bill to put an end to the abuse of ‘contractualisation’, which 
was vetoed by the President recently.   

With  regard  to  environment  and climate  change,  countries have improved reporting 
(e.g.  the  Convention  on  International  Trade  in  Endangered  Species  of  Wild  Fauna  and 
Flora). All beneficiaries signed the Paris Agreement and the Kigali Amendment to the 
Montreal Protocol. Yet, arguably, more focus on environment in the monitoring could 
allow for a stronger impact. The post 2020 global framework on biodiversity – under the 
Convention  on  Biological  Diversity  -  is  expected  to  set  stronger  targets  and  review 
mechanisms on countries’ progress and implementation.  

6.  GENERAL GSP ARRANGEMENT 

During  the  2018-2019  reporting  period,  Ghana,  Ivory  Coast  and  Swaziland  left  GSP 
due to their FTAs with the EU, whereas one country joined (Samoa), due to graduation 
from LDC status, bringing the total of beneficiaries at 15 by the end of the period. The 
figure  below  shows  the  breakdown  of  preferential  importsxvii  under  the  general  GSP 
arrangement in 2018. 

Figure 3. Major beneficiaries of the general GSP arrangement in 2018  
(EU imports in million €)  

Despite  GSP  imports  reducing  slightly  (from  €16.6  billion  in  2016  to  €16.4  billion  in 
2018),  India  remains  the  largest  beneficiary  of  the  general  GSP  arrangement  with 
50.8%  of  all  GSP  imports  to  the  EU,  followed  by  Vietnam  (27.9%)  and  Indonesia 
(20.5%).  Nigeria  and  Uzbekistan  follow  in  the  top  five,  with  marginal  proportions 
(0.4% and 0.3% respectively).  

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Product graduation 

Product  graduation  is  meant  as  a  removal  of  preferences  from  GSP  beneficiaries  for 
specific product sections based on the rationale that imports of those products no longer 
need EU preferences. It applies to the general GSP arrangement. New graduations apply 
from 1 January 2020 to 31 December 2022: 

Table 2. Product graduation in the periods 2017-2019 and 2020-2022 

GSP 
beneficiary 
country 

GSP section 
graduated until 31 
December 2019 

GSP section 
graduated from 
1 January 2020 

S-5 

S-6a 

S-11a 

S-14 

S-15a 

S-15b 

S-17b 

S-1a 

S-3 

India 

Indonesia 

Kenya 

S-2a 

Ukraine 

S-17a 

S-3 

S-6a 

S-11a 

S-14 

S-15a 

S-15b 

S-17a 

S-17b 

S-1a 

S-3 

S-5 

S-9a 

S-2a 

Product description 

Mineral products 

Inorganic and organic chemicals 

Textiles 

Pearls and precious metals 

Iron, steel and articles of iron and steel 

iron  and  steel), 
Base  metals  (excl. 
articles  of  base  metals  (excl.  articles  of 
iron and steel) 

Railway  or 
rolling-stock 

tramway 

locomotives, 

Motor  vehicles,  bicycles,  aircraft  and 
spacecraft, ships and boats 

Live  animals  and  animal  products 
excluding fish 

Animal or vegetable oils, fats and waxes 

Mineral products 

Wood  and  articles  of  wood;  wood 
charcoal 

Live plants and floricultural products 

Railway  and 
products 

tramway  vehicles  and 

Animal or vegetable oils, fats and waxes  

7.  THE GSP+ ARRANGEMENT  

The  GSP+  arrangement  is  one  of  the  EU's  primary  tools  to  promote  sustainable 
development in vulnerable developing countries. Countries have to fulfill two additional 
sets  of  criteria:  (i)  vulnerability  (consisting  of 
imports  share  and  economic 
diversification)  and  (ii)  sustainable  development.  As  concerns  the  latter,  they  have  to 
ratify  27  core  international  conventions  on  human  and  labour  rights,  environmental 
protection  and  good  governance.  Moreover,  countries  must  not  have  formulated 
reservations which are prohibited by these conventions; and the most recent conclusions 

10 

 
 
 
 
 
 
 
 
 
 
of the monitoring bodies under those conventions must not identify any serious failure to 
them.  The  2018-2019  reporting  period  covers  9  GSP+ 
effectively 
beneficiaries:  Armenia,  Bolivia,  Cabo  Verde,  Kyrgyzstan,  Mongolia,  Pakistan, 
Paraguay, the Philippines and Sri Lanka.  

implement 

Paraguay  ceased  to  benefit  from  GSP+  on  1  January  2019,  as  it  was  classified  as  an 
upper-middle income country for three consecutive years. Figure 4 presents the value of 
preferential  imports  from  GSP+  countries  in  2018.  The  biggest  share  came  from 
Pakistan, which accounted for 62.2% of all GSP+ imports to the EU (74% in 2018). 

Figure 4. Major beneficieries of the GSP+ arrangement in 2018 (imports to the EU 
in million €)  

8.  THE EVERYTHING BUT ARMS ARRANGEMENT 

EBA is EU's flagship trade instrument designed to help the world's poorest and weakest 
countries,  the  LDCs.  One  country  (Samoa)  left  the  arrangement  in  2019  due  to 
graduation from LDC status in 2014, bringing the total to 48 beneficiaries 

Figure 5 provides a breakdown of the value and percentage of preferential imports to the 
EU from EBA beneficiaries in 2018. The biggest share of imports under EBA came from 
Bangladesh (61.8%), followed by Cambodia (18.4%); and Myanmar (7.1%). In terms 
of  overall  GSP  beneficiaries  ,  Bangladesh  overtook  India  in  2018  (with  €16.8  billion 
preferential imports against €16.4 billion from India).  

11 

 
 
 
 
Figure 5. Major beneficiaries of Everything But Arms arrangement in 2018 (EU 
imports in million €) 

9.  PARTNERSHIP  

GSP is more than a trade tool: the dialogue with the EU on effective implementation of 
international  conventions  supports  the  longer-term  sustainable  development  of  the 
countries concerned. 

The EU is also providing financing for partners to help implement conventions and take 
more advantage of the benefits:  

In Mongolia, products were identified that could be marketed to the EU using the GSP+ 
arrangement.  EU  budget  support  included  –  at  the  request  of  the  government  -  a  child 
labour survey. In Sri Lanka, EU helped to formulate a National Export Strategy. In the 
Kyrgyz  Republic,  EU  technical  assistance  supported  awareness  of  EU  standards, 
procedures,  and  business  models,  increasing  the  rate  of  utilization  of  preferences.  In 
Armenia,  support  to  regional  Civil  Society  Organizations  helped  produce  evidence-
based  alternative  reports  to  UN  reporting.  In  Cape  Verde,  the  EU  supported  the  first 
Domestic  Workers’  Association.  In  Bolivia,  the  EU  supported  the  set-up  of  a  centre 
providing online pro bono legal counselling on political violence cases. In Pakistan, EU 
supported a project focused on enhancing the socio-economic rights of women working 
in  agriculture  in  Punjab;  ‘SMART  Myanmar’  promotes  sustainable  consumption  and 

12 

 
 
 
 
 
 
 
production of garments. Through the Trade for Decent Work project, the EU works with 
the ILO to improve the application of ILO fundamental Conventions in Bangladesh.   

10.  CONCLUSION  

EU's unilateral trade preferences help countries trade out of poverty, by creating a 
values-based economy: over 10% of EU imports comes from GSP beneficiary countries 
(including  non-preferential  imports).  By  making  it  easier  to  export  to  the  EU,  GSP 
attracts  investment,  supporting integration in  global  value chains.  This  creates jobs  and 
income.  

GSP  brings  incentives  to  invest  in  beneficiary  countries.  While  the  proportion  of 
preferential  imports  in  overall  EU  imports  is  limited  –  3.8%  in  2018  -  it  encouraged 
companies  and  governments  to  link  business  with  sustainable  development.  Promoting 
good governance and human rights provides a more predictable business environment. In 
the  garment  industry,  EU  buyers  are  introducing  new  business  models  with  high(er) 
environmental  and  labour  standards.  Those  international  values  make  companies  more 
competitive.  

GSP  needs  to  stay  relevant  for  development.  Preferences  are  eroding  due  to  trade 
deals. Ensuring coherence with other policies has become even more important, so that 
beneficiaries  can  capitalise  on  GSP.  This  includes  support  to  diversifying  economies; 
attracting new investors; trade facilitation and awareness.  

GSP needs strong partnerships: the EU will continue to work closely with beneficiaries 
and  stakeholders.  These  partners,  including  the  European  Parliament  and  EU  Member 
States, are essential for bringing the 2030 Sustainable Development Agenda forward. EU 
industry is at the forefront of high standards in terms of labour, production processes and 
the  environment  and  can  support  countries'  sustainable  development  through  their 
business plans.  

Through  access  to  the  EU  market,  we  assist  developing  countries  in  their  efforts  on 
economic growth, poverty reduction, good governance and sustainable development. 

13 

 
 
ANNEX I. BENEFICIARIES  

Table 1. General GSP arrangement  

14 

  General GSP beneficiaries during the 2018-2019 reporting period Changes in beneficiary status  during  2018-2019 and beyond 1.  Cook Islands  2.  Cote d'Ivoire Left the scheme on 1 January 2019 3.  Ghana Left the scheme on 1 January 2019 4.  India  5.  Indonesia  6.  Kenya  7.  Micronesia (Federate States of)  8.  Nauru  9.  Nigeria  10.  Niue  11.  Republic of Congo  12.  Samoa Included per 1 January 2019 after removal from EBA  13.  Swaziland Left the scheme on 1 January 2019 14.  Syria  15.  Tajikistan  16.  Tonga  17.  Uzbekistan  18.  Vietnam To be removed two years following the upcoming entry into force of the EU FTA  
 
 
 
  
 
 
 
 
 
 
 
 
 
Table 2. GSP+ arrangement 

*Depending on the World Bank classification to Upper Middle Income Status.  

15 

         GSP+ beneficiaries during the 2018 -2019 reporting period Changes in GSP+ beneficiary status during 2018-2019 and beyond 1.  Armenia Could leave the scheme by 1 January 2022* 2.  Bolivia  3.  Cabo Verde  4.  Kyrgyzstan  5.  Mongolia  6.  Pakistan  7.  Paraguay Left the scheme on 1 January 2019 8.  The Philippines  9.  Sri Lanka Could leave the scheme by 1 January 2023*  
 
 
 
 
 
Table 3. EBA arrangement  

16 

 EBA beneficiaries during the 2018-2019 reporting period 1. Afghanistan 26. Mali 2. Angola 27. Mauritania 3. Bangladesh 28. Malawi  4. Bhutan 29. Myanmar/Burma 5. Burkina Faso 30. Mozambique 6. Burundi 31. Nepal 7. Benin 32. Niger 8. Cambodia 33. Rwanda 9. Chad 34. Samoa (removed 1 January 2019) 10. Democratic Republic of Congo 35. Sierra Leone 11. Central African (Republic) 36. Senegal 12. Comoros Islands 37. Solomon Islands 13. Djibouti 38. Somalia 14. Eritrea 39. South Sudan 15. Ethiopia 40. Sudan 16. Gambia 41. Sao Tome and Principe 17. Guinea 42. Tanzania 18. Equatorial Guinea 43. Timor-Leste 19. Guinea-Bissau 44. Togo 20. Haiti 45. Tuvalu 21. Kiribati 46. Uganda 22. Lao (People's Democratic Republic) 47. Vanuatu 23. Liberia 48. Yemen   24. Lesotho 49. Zambia 25. Madagascar    
 
 
 
ANNEX II. STATISTICAL INFORMATION  

Table 1. Value of preferential imports for all GSP countries (thousand €)* 

Table 2. Value of preferential imports by General GSP country (thousand €)* 

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

17 

Source : COMEXT  - TARIC - ISDB201620172018GSPThirdProductImports ('000 €)% GSPImports ('000 €)% GSPImports ('000 €)% GSPClassCountrySectionTotalGSP eligibleGSP usedUtililsationTotalGSP eligibleGSP usedUtililsationTotalGSP eligibleGSP usedUtililsation All GSPs All third countries All sections157.968.28577.772.81061.304.97578,8171.015.87981.859.27166.500.26881,2183.561.86984.197.17068.867.98281,8GSP EBA All third countries All sections36.231.58125.629.46023.542.23491,936.322.07027.282.56325.470.09293,439.815.33829.042.28827.135.73393,4GSP General All third countries All sections104.700.49141.659.37729.168.90170,0115.944.57143.256.51231.682.03973,2124.430.85043.762.08032.264.22273,7GSP Plus All third countries All sections17.036.21310.483.9748.593.84082,018.749.23811.320.1979.348.13782,619.315.68111.392.8029.468.02883,1Source : COMEXT  - TARIC - ISDB201620172018GSPThirdProductImports ('000 €)% GSPImports ('000 €)% GSPImports ('000 €)% GSPClassCountrySectionTotalGSP eligibleGSP usedUtililsationTotalGSP eligibleGSP usedUtililsationTotalGSP eligibleGSP usedUtililsationGSP GeneralCongo All sections1.048.68434.08414.35042,11.001.21020.11313.73968,3847.80140.98932.74479,9GSP GeneralCook Islands All sections8.6592463112,77.7215436,312.11829GSP GeneralGhana All sections2.287.682683.3858680,11.791.855742.4125.6770,82.591.628766.9961.2560,2GSP GeneralIndia All sections37.687.52218.889.80416.638.80388,142.011.29218.521.20316.055.20386,743.601.09318.765.68016.377.58087,3GSP GeneralIndonesia All sections14.029.2607.314.4405.166.23370,615.508.7528.054.9546.372.48479,115.557.2588.173.7546.616.40080,9GSP GeneralIvory Coast All sections4.535.7821.294.5572.0700,24.352.8431.294.4991.5400,13.987.6261.166.1784670,0GSP GeneralKenya All sections1.268.546870.13116.2881,91.227.254392.6723.3730,91.264.239419.8892.6480,6GSP GeneralMicronesia All sections45044211225,41441428157,51221126255,0GSP GeneralNauru All sections9553684327414GSP GeneralNigeria All sections10.844.785157.780101.97464,613.207.881164.081107.07065,318.715.007147.040114.66178,0GSP GeneralNiue All sections2671812312134622GSP GeneralSwaziland All sections121.53421.049560,384.69215.35863.30319.269290,2GSP GeneralSyria All sections49.48920.2308.91144,152.98423.48210.44844,557.87323.93112.04050,3GSP GeneralTadjikistan All sections81.96812.91611.82291,542.85717.41215.52789,246.88415.38314.08391,5GSP GeneralTonga All sections8631253528,23121065652,41.4031.019979,5GSP GeneralUzbekistan All sections117.18986.28975.68987,7176.378134.804121.30890,0152.522112.33498.60687,8GSP GeneralVietnam All sections32.617.71512.273.6647.131.65558,136.478.09713.875.1588.975.52964,737.531.35314.109.4408.993.54863,7 
 
 
 
 
Table 3. Value of preferential imports by EBA country (thousand €)* 

18 

Source : COMEXT  - TARIC - ISDB201620172018ThirdImports ('000 €)% GSPImports ('000 €)% GSPImports ('000 €)% GSPCountryTotalGSP eligibleGSP usedUtililsationTotalGSP eligibleGSP usedUtililsationTotalGSP eligibleGSP usedUtililsation All third countries36.231.58125.629.46023.542.23491,936.322.07027.282.56325.470.09293,439.815.33829.042.28827.135.73393,4Afghanistan18.8865.6322.84650,521.3657.1123.79253,325.96611.9586.96258,2Angola4.156.54369.80830.82844,22.273.90655.87428.02450,23.628.25447.61032.46068,2Bangladesh16.384.26716.321.08015.617.51095,716.744.62716.676.90916.145.45696,817.400.92817.327.00516.776.31096,8Benin39.2185.1154.81794,218.0483.1322.83090,417.0344.1283.45483,7Bhutan2.6042.1391.88488,113.21813.12112.95498,726.22625.47524.97298,0Burkina Faso109.14910.9289.91290,7165.78116.46815.42293,6189.38319.17717.95393,6Burundi31.92529226089,324.8811868646,524.47722613961,6Cambodia4.595.5904.529.0914.179.30692,34.957.8274.922.4614.711.55495,75.254.6685.214.9704.987.30595,6Central African Republic16.55674860,912.25838536394,213.335358Chad114.667978200.324229344.3731.04700,0Comoros15.5157.5057.16895,519.4639.6038.97493,526.1288.8485.86166,2Congo (Democratic Rep)738.7956.0013.59559,9747.6668.7017.03080,8693.93734.77333.41996,1Djibouti23.0975.4021562,917.9528.7932663,012.9185.3001943,7Equatorial Guinea1.237.74122.79519.05283,61.046.54813.42811.68087,01.263.7907.0281.90027,0Eritrea13.2482.1712.03193,619.9912.0571.99597,02.2902.1211.96992,8Ethiopia712.168400.421245.78961,4651.593248.859228.74891,9641.581245.054236.08896,3Gambia14.03910.5129.93394,511.8476.6606.47597,217.86411.6409.85984,7Guinea522.8662.66481130,5442.7903.0621.44747,3507.0061.8431.02255,4Guinea Bissau1.6024043.199303.49140119849,4Haiti39.48415.99613.82386,447.25422.83119.87387,051.64217.92015.20184,8Kiribati1529730021114066,429817815888,6Laos235.140177.175170.09796,0273.718190.102179.62794,5250.958196.320182.25792,8Lesotho207.5162.8752.04771,2270.7895.6171.25322,3352.2055.8621.58627,1Liberia272.9134.3013798,8534.1571.219494,0341.75154250,9Madagascar935.078702.3779.8591,41.114.120843.31822.7152,71.166.604900.12120.3872,3Malawi267.919215.082214.02999,5364.680306.073304.20799,4300.737263.068260.30098,9Mali36.6265.7064.77383,627.2094.6583.61877,741.2284.5641.25527,5Mauritania428.459224.239217.87997,2497.476316.171312.15498,7523.375358.765352.58198,3Mozambique1.301.694970.575964.75899,41.636.3451.133.6191.114.52398,31.839.6841.240.2161.219.49298,3Myanmar974.013878.013828.36094,31.507.9751.398.2401.316.44994,22.188.7382.016.3001.926.41695,5Nepal94.31283.43577.17592,593.13882.46174.98690,990.22378.75971.36890,6Niger116.0243.6923.08083,483.9073.9133.50489,57.5294.0113.18879,5Rwanda51.3491.99194747,656.1586.5115.57585,664.45910.55010.06195,4Samoa1.8821.47529319,95.5244.0511172,92.55366944666,6Sao Tome and Principe10.2411839853,57.8351519160,55.38074453371,7Senegal416.579266.230255.42695,9441.511337.757324.88896,2542.620381.831366.71796,0Sierra Leone222.9381.64553332,4246.8813.1882.34273,4230.7724.07164715,9Solomon Islands53.49552.94552.84899,865.78165.41465.389100,069.63468.98668.80499,7Somalia13.047568152,718.11910623.93575060981,1South Sudan3031047067,62347456,79335Sudan182.86323.46022.75197,0171.71443.27541.41795,7150.26411.76210.68990,9Tanzania620.797324.271317.66698,0504.007276.635268.10096,9473.345263.768256.36497,2Timor-Leste5.3697112.8806.5989.8085.181Togo102.77533.29024.13872,576.88820.34918.66991,778.77823.65022.28894,2Tuvalu51281554229434Uganda444.563150.535148.27398,5511.912144.142141.15897,9470.893134.028131.48098,1Vanuatu3.3341.47537025,198733218054,21.0201102220,4Yemen18.6926.2854.57472,831.93017.31516.01292,539.58428.79126.07090,5Zambia425.49677.65672.06792,8325.20551.12145.95589,9403.28451.73946.74490,3 
 
 
Table 4. Value of preferential imports by GSP+ country (thousand €)* 

19 

Source : COMEXT  - TARIC - ISDB201620172018GSPThirdImports ('000 €)% GSPImports ('000 €)% GSPImports ('000 €)% GSPClassCountryTotalGSP eligibleGSP usedUtililsationTotalGSP eligibleGSP usedUtililsationTotalGSP eligibleGSP usedUtililsationGSP Plus All third countries17.036.21310.483.9748.593.84082,018.749.23811.320.1979.348.13782,619.315.68111.392.8029.468.02883,1GSP PlusArmenia310.033116.430107.77292,6351.132135.485130.31996,2207.91374.86868.16291,0GSP PlusBolivia529.75658.74155.23394,0474.41058.52354.34492,9592.67340.67236.85390,6GSP PlusCape Verde70.61468.09765.88696,872.26646.47438.42682,790.45475.36471.56795,0GSP PlusKyrgyz Republic72.2896.0893.24453,3164.9337.9784.79560,1631.17610.0706.11260,7GSP PlusMongolia64.16718.13915.26484,169.57919.50916.79586,172.58717.94216.52292,1GSP PlusPakistan6.205.7125.783.3015.522.68895,56.592.8106.114.5715.877.71696,16.739.5196.097.7525.885.05596,5GSP PlusParaguay1.074.45941.71836.55887,61.147.66953.96047.53288,1735.556110.178104.40894,8GSP PlusPhilippines6.306.7212.361.8221.681.54271,27.241.8622.620.1121.937.60274,07.490.4082.618.0571.914.77373,1GSP PlusSri Lanka2.402.4602.029.6371.105.65454,52.634.5762.263.5851.240.60754,82.755.3952.347.9001.364.57558,1 
 
 
 
 
i Regulation (EU) No 978/2012 of the European Parliament and of the Council of 25 October 2012 applying a 
scheme of generalised tariff preferences and repealing Council Regulation (EC) No 732/2008, OJ L 303, 
31.10.2012.  
ii Report from the Commission to the European Parliament and the Council on the application of Regulation 

(EU) No 978/2012 {SWD(2018) 430 final}, COM(2018) 665 final, Brussels, 4.10.2018  

iii http://trade.ec.europa.eu/civilsoc/meetdetails.cfm?meet=11541 
iv See Market Access for Products and Services of Export Interest to Least Developed Countries. Note by the 
WTO Secretariat, WT/COMTD/LDC/W/66, 2 October 2018. 
v Commission Implementing Regulation (EU) 2019/249 of 12 February 2019, OJ L 42, 13.2.2019.  
vi Commission Delegated Regulation (EU) 2015/1979 of 28 August 2015, OJ L 289, 5.11.2015.  
vii Commission Delegated Regulation (EU) 2018/148 of 27 September 2017, OJ L 26, 31.1.2018.  
viii Commission Delegated Regulation (EU) 2015/1979 of 28 August 2015, OJ L 289, 5.11.2015.  
ix Commission Delegated Regulation (EU) 2017/217 of 5 December 2016 OJ L 34, 9.2.2017.  
x Commission Delegated Regulation (EU) 2015/1979 of 28 August 2015 OJ L 289, 5.11.2015.  
xi Commission Delegated Regulation (EU) 2018/148 of 27 September 2017, OJ L 26, 31.1.2018.  
xii Commission Implementing Regulation (EU) 2019/67 of 16 January 2019, OJ L 15, 17.1.2019.  
xiii Commission Implementing Decision of 11 February 2019 on the initiation of the procedure for temporary 
withdrawal of the tariff preferences provided to the Kingdom of Cambodia under Article 19 of Regulation (EU) 
No 978/2012, OJ C 55, 12.2.2019.  
xiv European Parliament resolution of 14 March 2019 on the implementation of the GSP Regulation (EU) No 
978/2012 (2018/2107(INI).  
xv Article 35 of the GSP Regulation specifies the basis for the statistical data of this report. The figures were 
compiled by DG TRADE on the basis of data available in September 2019 from the COMEXT database 
(provided for in the Extrastat legislation (Regulation (EC) No 471/2009)), and Eurostat. The analysis considers 
only the Union's imports under the customs procedure for release for free circulation (“normal trade”), and may 
thus be lower than total imports. They also exclude Special CN Codes which are not part of GSP and statistical 
confidential trade. Statistical confidential trade is excluded (. to prevent unwantedly deriving an EU-importer 
from the COMEXT trade statistics and the possible implications for the analysis at the level of an individual 
GSP beneficiary or a product (goods’ code). 
xvi COM(2018) 665 final, Brussels, 4.10.2018. 

xvii Preferential imports are the eligible imports for which GSP preferences were effectively used. 

20