European Union EU Generalised System of Preferences (GSP)

Course summary European Union EU Generalised System of Preferences (GSP):

Since 1971, the European Union schemes such as the GSP have allowed developing countries to pay lower import tariffs on some or all of their exports to the EU.

In 2009, imports that received GSP preferences were worth €60 billion, which represents 4% of total EU imports and 9.3% of the total EU imports from developing countries. Under the revised scheme, imports that will receive GSP preferences are estimated at €37.7 billion.

The current GSP scheme covers three elements:
- the general GSP arrangement which provides import tariff reductions for 176 developing countries and territories.
- the special incentive arrangement for sustainable development and good governance (known as GSP+). This arrangement offers additional preferences to support vulnerable developing countries in their ratification and implementation of international conventions in the field of human and labour rights, sustainable development and good economic governance. The current GSP+ scheme covers 15 beneficiaries. The EU will provide for more incentives for countries to join the GSP+ scheme, while at the same time enhancing its leverage to ensure those rights and principles are respected.
- the Everything But Arms arrangement which provides for complete access (duty-free and quota-free) to the EU market save for arms and armaments for the 49 Least-Developed Countries as defined by the UN.

In February 2001, the Council adopted Regulation (EC) 416/2001, the so-called "EBA Regulation" ("Everything But Arms"), granting duty-free access to imports of all products from LDCs, except arms and ammunitions, without any quantitative restrictions (with the exception of bananas, sugar and rice for a limited period).

Example of the course European Union EU Generalised System of Preferences (GSP):

Least-Developed Countries (LDCs) benefitting from EBA (Everything But Arms) arrangement:
Asia Pacific: Afghanistan, Bangladesh, Bhutan, Cambodia, Kiribati, Lao, Maldives, Nepal, Solomon Islands, Samoa, Timor-Leste, Tuvalu, Vanuatu, Yemen

Africa: Angola, Chad, Congo (Democratic Republic of), Comoros Islands, Niger, Djibouti, Lesotho, Rwanda, Benin, Equatorial Guinea, Liberia, Eritrea, Madagascar, São Tomé and Príncipe, Togo, Burkina Faso, Ethiopia, Malawi, Senegal, Burundi, Gambia, Mali, Sierra Leone, Uganda, Kenya, Guinea, Mauritania, Somalia, Cape Verde, Guinea-Bissau, Mozambique, Sudan, Central African Republic, Haiti, Tanzania, Zambia.