GSP - Generalised System of Preferences

The Generalized System of Preferences (GSP) is a unilateral instrument through which the EU (and other industrialised countries) grants goods from developing countries reduced or zero duties without requiring reciprocity as in a free-trade agreement. The EU legal basis is GSP Regulation No 978/2012 (extended and repeatedly amended; the successor regime for 2024-2033 is currently being negotiated).

There are three tiers: Standard GSP reduces EU duties for about two thirds of all tariff lines for all beneficiary countries; GSP+ grants full duty exemption for countries that have ratified and implemented 27 international conventions on human rights, labour standards, environment and good governance (e.g. Pakistan, Sri Lanka, Philippines, Cape Verde); EBA (Everything But Arms) grants full duty- and quota-free access for all goods except arms for the 47 least developed countries (LDCs), including Bangladesh, Cambodia, Myanmar, Ethiopia, Madagascar. For the textile industry EBA is the main reason why a large share of the world's basic garment production migrated to Bangladesh. Caveat: EBA preferences can be withdrawn in cases of serious human-rights violations — Cambodia was partially suspended in 2020.