SUMMARY :

• The EU co-legislators have reached a political agreement on the revision of the GSP Regulation, which is expected to apply from 1 January 2027. The new framework introduces stricter rules, updated graduation thresholds and greener enforcement tools while preserving access for 65 developing countries.

More details :

On 2nd December the European Commission, European Council and European Parliament reached a political agreement on the revision of the Generalised Scheme of Preferences (GSP). The renewed framework retains its three main components (Standard GSP, GSP+ and EBA) alongside several significant improvements:

• International conventions: expanded list of human and labour rights conventions to be respected to qualify. Introduction of an urgency procedure to rapidly withdraw preferences in case of serious violations.
• Greener GSP: possible suspension of benefits in response to systematic breaches of climate or environmental protection commitments.
• Poorest countries transition: countries graduating from LDC status within the next decade may continue to benefit through GSP+, subject to robust sustainability standards.
• Graduation thresholds: reduced by 10% (from 57% to 47%).
• Rules of origin: new dedicated mechanism ensuring that cumulation reflects each country’s development and trade needs.
• Transparency: strengthened monitoring and stakeholder participation for improved implementation of GSP+ commitments.

FESI welcomes the fact that the co-legislators have broken the legislative deadlock, providing certainty for the 65 developing countries participating in the scheme and for EU sporting goods companies importing from them. The provisional agreement now requires formal endorsement by both the Council and the Parliament, with entry into force foreseen for 1 January 2027.

Please note that the final legal text has not yet been published. A detailed analysis of the key changes for our sector will follow in the coming weeks.