The European Parliament has approved a major update to its long-standing trade scheme designed to support developing nations, reinforcing its role as a tool for poverty

reduction while tightening rules on human rights, migration cooperation, and market safeguards.

Adopted on Tuesday with a strong majority, the revised regulation extends the EU’s Generalised System of Preferences (GSP), allowing vulnerable economies to continue exporting goods to the bloc at reduced or zero tariffs. The scheme, which affects more than 60 countries and over two billion people, will now run for another decade once formally endorsed.

At the heart of the reform is a stronger emphasis on global standards. Countries seeking to benefit from the preferential access will be required to comply with an expanded list of international agreements, including key environmental and human rights treaties such as the Paris Climate Agreement and conventions protecting children and persons with disabilities. The EU also plans to enhance monitoring to ensure commitments are upheld in practice.

Migration policy has emerged as a sensitive new element in the updated framework. Lawmakers introduced stricter conditions under which trade benefits could be suspended if countries fail to cooperate on the return of irregular migrants. However, the mechanism includes safeguards: a prolonged evaluation process, at least a year of engagement with the country concerned, and a delayed application for the world’s least developed nations.

The reform also addresses concerns within the EU’s agricultural sector. To shield European rice producers from sudden market disruptions, automatic safeguards will be triggered if imports surge significantly above long-term averages.

Bernd Lange, chair of the Parliament’s International Trade Committee, described the updated system as a “flagship development tool” that balances economic opportunity with responsibility. He emphasized that the revised framework maintains the EU’s commitment to fair globalization while adapting to shifting global trade dynamics.

The legislation now awaits final approval by EU member states. Once adopted, it will enter into force and apply for a ten-year period.

Originally introduced in 1971, the GSP has been a cornerstone of the EU’s trade policy toward developing countries, aiming to foster sustainable growth and integrate emerging economies into global markets. The latest reform reflects an effort to modernize the system amid evolving geopolitical and economic pressures.