On January 1, 2014, the reformed European Union's (EU) Generalized System of Preferences (GSP) takes effect. The changes, in summary, are:
- 90 countries, out of the current 177 beneficiaries, will continue to benefit from the EU's preferential tariff scheme.
- 67 countries will benefit from other arrangements with a privileged access to the EU market, but will not be covered by the GSP anymore.
- 20 countries will stop benefitting from preferential access to the EU. These countries are now high and upper-middle income countries and their exports will now enter the EU with a normal tariff applicable to all other developed countries.
Out of the 90 beneficiaries that will receive preferences under the reformed GSP, 49 are least developed countries (LDC) under the Everything But Arms (EBA) scheme and 41 other low and lower-middle income partners.
The European Commission (EC) posted on its GSP website a practical guide to the reformed GSP trade regimes for developing countries. The Guide explains the scope of modified EU GSP import regimes and includes a country-of-origin guide.