{"id":5502,"date":"2026-01-07T19:15:06","date_gmt":"2026-01-07T18:15:06","guid":{"rendered":"https:\/\/vicasso.net\/?p=5502"},"modified":"2026-03-10T12:22:57","modified_gmt":"2026-03-10T11:22:57","slug":"gsp-current-framework-and-recent-changes","status":"publish","type":"post","link":"https:\/\/vicasso.net\/en\/news-about-the-sector\/gsp-current-framework-and-recent-changes\/","title":{"rendered":"GSP: current framework and recent changes"},"content":{"rendered":"\t\t
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PGS: What it is and What Changes Have Been Introduced Recently<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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What is SPG?<\/strong><\/p>

<\/strong>The GSP (Generalized System of Preferences) is a European Union mechanism that offers developing countries trade preferences, allowing them to export products to the EU at reduced or eliminated tariffs. Its objective is to support the economic growth of these countries by facilitating their integration into international trade. The regime is adjusted according to the level of development of each country, benefiting mainly those with lower incomes and economic vulnerabilities. <\/p>

Beneficiary countries included in the GSP<\/strong><\/p>

These countries are on the list of beneficiaries under the general GSP scheme (as of January 1, 2025)
– Congo
– Cook Islands
– India
– Indonesia (subject to future revision)
– Kenya (to be withdrawn in 2027 by preferential agreement)
– Micronesia
– Nigeria
– Niue
– Bolivia
– Cape Verde
– Kyrgyzstan
– Mongolia
– Pakistan
– Philippines
– Sri Lanka
– Uzbekistan<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Countries excluded or ineligible for the GSP
<\/strong>
There are several circumstances under which a country may be excluded from the GSP scheme:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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  1. Has a free trade agreement or other preferential access equal to or better<\/strong> than GSP preferences (e.g., agreements with the EU).<\/li>
  2. It is a high-income country or a country with full trade agreements, which implies its automatic exclusion from the GSP.<\/li>
  3. It has reached a level of development that no longer meets the<\/strong> developing country criteria set out in the GSP Regulation.
    A recent example of the latter is Indonesia<\/strong>, whose situation is detailed below.<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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    Removal of Indonesia from the GSP
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    Indonesia, which until now benefited from the GSP regime, will lose this status as of January 1, 2027<\/strong>. This is because the World Bank has classified Indonesia as an “upper-middle income” country for three consecutive years (2023, 2024 and 2025). <\/p>\n

    According to Article 4 of Regulation (EU) No. 978\/2012, those countries classified as high or upper-middle income for three consecutive years can no longer be beneficiaries of the GSP. As of 2027, Indonesia will no longer receive the preferential trade benefits that allowed it to export products to the European Union at reduced tariff rates.

    Impact of Indonesia’s Exclusion
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    This change will have a significant impact on Indonesian importers and exporters trading with the European Union. From 2027, Indonesian products will be subject to higher tariffs, eliminating GSP trade advantages. This poses a challenge for Indonesian companies, which will have to adapt to the new tariff conditions. However, this change also reflects Indonesia’s economic growth and its evolution into an upper-middle-income economy, which justifies its exclusion from this preferential regime.

    Photo: Petrit Nikolli<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\n

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