Brussels, (Unib Rashid) – The European Union’s Generalised Scheme of Preferences (GSP) is benefiting the economies of 65 developing countries while also contributing to long-term stability and sustainable development, according to a new report issued by the European External Action Service (EEAS).

Titled “How the EU’s GSP Promotes Long-Term Stability in Developing Countries,” the report, which was also reposted by the European Union Office in Pakistan, highlights the EU’s use of trade as a tool for creating economic opportunities. As one of the world’s most open economies, the European Union provides eligible developing countries with preferential access to its single market through reduced or zero tariffs.

The report describes the GSP as a key EU trade instrument designed to support the integration of developing countries into the global economy and promote sustainable development. According to the EEAS, the European Commission and the High Representative for Foreign Affairs and Security Policy issued a new joint report in July 2026 on the implementation of the GSP.

The report emphasises that the scheme supports exports from developing countries to the European Union and contributes to sustainable economic growth. By offering reduced or zero tariffs on imports from eligible developing countries, the GSP helps partner countries increase exports, attract investment, create employment opportunities and become more deeply integrated into the global economy.

At the same time, the scheme encourages sustainable development by promoting compliance with international standards relating to human rights, labour rights, environmental protection, climate action and good governance.

The report explains that the EU’s Generalised Scheme of Preferences is a unilateral trade arrangement established in accordance with World Trade Organization rules. It provides eligible developing countries with preferential access to the EU market and helps make trade a driver of opportunity, resilience and long-term growth.

The scheme also contributes to poverty reduction, helps countries diversify their exports and facilitates their integration into global value chains.

The EU’s new and updated GSP Regulation, signed on 18 June 2026, maintains the core structure of the scheme while adapting it to global challenges. The new framework will enter into force on 1 January 2027 and will remain in place for the next 10 years.

According to the report, the revised GSP framework strengthens the link between trade and international standards, enhances monitoring and transparency, improves safeguards for European industry and provides greater predictability for partner countries. While retaining the scheme’s development focus, the new framework is described as stronger, more transparent and more enforceable.

The revised framework also deepens the relationship between trade preferences and compliance with international conventions. Countries may face withdrawal of preferences in cases of serious violations of principles relating to human rights, labour rights, the environment, climate action or good governance.

The report further notes that the new framework covers 32 GSP-related international conventions, with the Paris Agreement replacing the Kyoto Protocol in the relevant framework.

The EU also provides special support to the world’s least-developed countries. Under the GSP’s Everything But Arms (EBA) arrangement, 46 least-developed countries benefit from duty-free and quota-free access to the EU market for all products except arms and ammunition. The arrangement has no expiry date, helping encourage long-term investment and export diversification.

The new framework also provides a smoother transition for countries graduating from least-developed-country status. Such countries will retain EBA preferences for up to three years, helping them avoid sudden increases in tariffs.

Referring to a case study from Armenia, the report notes that the GSP can create tangible opportunities for small businesses by providing access to preferential tariffs and supporting them in navigating trade-related requirements.

The joint report concludes that the GSP remains a central EU instrument for supporting developing countries through trade. By opening its market, promoting international standards and creating predictable opportunities for exporters, the European Union continues to demonstrate how trade can contribute to sustainable development, economic resilience and shared progress.