EU: Revised Trade Rules to Incentivize Sustainability in Developing Countries

The EU’s Generalized Scheme of Preferences (GSP) removes import duties from products coming into the EU market from vulnerable developing countries. On December 1, 2025, the European Commission, the European Council and the European Parliament reached an agreement on a revision of the GSP.

The revised GSP will:

  • Ensure a smoother transition for countries that are moving up in their development status by allowing them to retain preferential EU market access if they meet sustainability standards.
  • Create more opportunities for low-income countries by lowering product graduation thresholds.
  • Promote stronger human rights and labor standards by adding new conventions to the list of required compliance.
  • Introduce the possibility to withdraw benefits for environmental and climate violations.
  • Improve monitoring, transparency, and civil society involvement, and introduce an urgent withdrawal procedure.
  • Make beneficiary countries responsible for readmitting their own nationals in case of illegal migration issues.

The provisional agreement will now be endorsed by the Council and the Parliament before being formally adopted. The legislation will apply from January 1, 2027.

More information

This article originally appeared on inc.nutfruit.org.

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