EU reaches provisional agreement on trade preferences linking benefits with migration cooperation
On 1 December 2025, the Council of the European Union and the European Parliament reached a provisional agreement on the revision of the EU’s Generalised Scheme of Preferences (GSP). The updated framework introduces, for the first time, a link between trade benefits and the cooperation of developing countries on migration and readmission of their nationals. The legislation is expected to apply from 1 January 2027.
The Generalised Scheme of Preferences (GSP) is an EU trade policy that gives developing countries preferential access to the EU market through reduced or zero tariffs on their exports. The scheme has been revised to strengthen its effectiveness and update rules for sustainability.
For the first time, the agreement introduces a conditionality mechanism linking trade preferences to migration cooperation. Under the new rules, GSP benefits may be withdrawn if a beneficiary country does not cooperate with the EU on the readmission of its nationals who are illegally present in the Union. The European Commission will monitor compliance and has the authority to suspend preferences, while informing the European Parliament and the Council to ensure transparency.
The provisional agreement will now need formal endorsement by both the Council and the European Parliament before adoption. Once formally adopted, the revised GSP regulation is expected to enter into force on 1 January 2027.
For further details, please read the press release from the Council of the EU.