On 22 May 2026, the Council of the European Union formally adopted the revised Generalised Scheme of Preferences Regulation (“revised GSP Regulation”), which provides a strengthened framework for granting unilateral preferential access to the EU market for developing countries while reinforcing the conditions attached to those benefits.
The reform reflects the EU’s policy objective of using trade preferences as a partnership tool to promote sustainable development, respect for human rights and good governance. It follows a provisional agreement reached in April this year between the Council and the European Parliament and seeks to strengthen the credibility and enforceability of the GSP framework (see the approved proposal here). We have listed the key changes below.
- Enhanced requirements, engagement and monitoring process
Under the revised GSP Regulation, monitoring and transparency obligations are enhanced and the list of international conventions underpinning GSP conditionality is expanded. In particular, the revised GSP Regulation adds the Paris Agreement, additional United Nations human rights instruments, further International Labour Organization labour standards and the UN Convention against Transnational Organized Crime to the list that beneficiary countries must respect. The Paris Agreement hereby replaces the Kyoto Protocol as the relevant climate benchmark. Compliance is reinforced through closer monitoring, the use of the EU’s Single Entry Point for complaints and faster procedures for the temporary withdrawal of preferences in cases of serious and systematic violations, including child and forced labour.
- Impact on the “Everything But Arms” arrangement
The revised GSP Regulation maintains the existing three-tier structure of the existing GSP framework, including the “Everything But Arms” (EBA) arrangement for the least developed countries. Under EBA, eligible countries will continue to benefit from full duty-free and quota-free access to the EU market for all products, except arms and ammunition. While the level of market access remains unchanged, the reform introduces important changes to the legal framework governing the potential withdrawal of EBA preferences. The revised framework also includes transition mechanisms for countries graduating from EBA status. Such countries may move from EBA to the GSP+ arrangement, provided they meet the stricter sustainability and governance requirements.
- Cooperation on readmission of the beneficiary’s country’s nationals
For the first time, the revised GSP Regulation also establishes a direct link between trade preferences and cooperation on migration and readmission. The European Commission will be able to assess whether beneficiary countries cooperate effectively on the readmission of their nationals illegally staying in the EU and, where appropriate, propose the withdrawal of GSP benefits.
- Safeguard mechanisms
The revised GSP Regulation further strengthens safeguard mechanisms to protect EU producers from sudden and significant import surges. This includes a specific safeguard for rice imports, allowing the temporary reintroduction of tariffs where imports rise significantly above normal levels and risk disrupting the EU market.
The revised GSP Regulation is expected to apply from 1 January 2027, following signature and publication in the EU’s Official Journal. Companies benefiting from, or relying on, GSP preferences should closely monitor developments in the implementing framework and assess the potential impact of the enhanced conditionality requirements. In particular, businesses may wish to evaluate exposure to countries where compliance with the expanded set of international obligations could become a point of scrutiny or enforcement.
The Baker McKenzie global customs and trade team will continue monitoring developments with respect to the revised GSP Regulation and will report on significant updates.
