The European Union's trade preference programme for developing countries has continued to support economic growth, sustainable development and exports despite a period of
geopolitical instability, according to a new report published by the European Commission.
The report, covering the EU's Generalised Scheme of Preferences (GSP) between 2023 and 2025, says the programme remained a key tool for helping low and lower-middle income countries sell goods to the EU by offering reduced or zero import tariffs.
In 2024, the EU imported almost €60bn (£52bn) worth of goods under the scheme, generating an estimated €5bn in tariff savings for beneficiary countries. The largest share of those benefits went to the world's least-developed nations through the Everything But Arms (EBA) arrangement, which accounted for more than €3bn in savings.
Bangladesh, India and Pakistan were the biggest beneficiaries of the programme, with clothing remaining the dominant export sector, making up 59% of all trade conducted under GSP preferences.
The Commission said the scheme continued to provide stability and predictable access to the European market at a time of heightened global economic and political uncertainty.
Progress on rights and governance
Alongside trade benefits, the report concludes that the GSP has continued to encourage reforms on human rights, labour standards, environmental protection and good governance.
Under the GSP+ programme, which grants additional trade benefits to countries implementing international conventions on human rights, labour rights, environmental protection and governance, many participating countries strengthened legislation and institutions during the reporting period.
The report highlights improvements in labour rights, biodiversity protection, anti-corruption measures and drug control policies across several beneficiary countries.
However, the Commission says significant challenges remain.
It identifies continuing concerns over judicial independence, access to justice and accountability for human rights violations in some countries. Labour law enforcement also remains inconsistent, with labour inspectorates frequently lacking sufficient resources and capacity.
The report is accompanied by detailed assessments of all eight current GSP+ countries — Bolivia, Cabo Verde, Kyrgyzstan, Mongolia, Pakistan, the Philippines, Sri Lanka and Uzbekistan — as well as enhanced monitoring reports on Bangladesh, Cambodia and Myanmar under the Everything But Arms scheme.
Programme to continue under new rules
The Commission says the economic outlook for many beneficiary countries is improving, with several expected to graduate from the UN's list of least-developed countries in the coming years. It says the GSP will continue to provide transitional support as those countries move towards greater economic independence.
The report is the final assessment produced under the current GSP Regulation.
A revised framework for the scheme, covering the period 2027-2036, was adopted by the EU in June and will come into force on 1 January 2027. The new rules introduce stronger sustainability and transparency requirements while maintaining regular monitoring of beneficiaries' commitments on human rights, labour standards, environmental protection and good governance.
