Trade Agreements

Trade and economic relations between the EU and Yemen are currently governed by a Cooperation Agreement which was signed in 1998. One of the principal objectives of the Agreement is to promote and step up trade between the Parties, and to encourage the steady expansion of sustainable economic cooperation, in accordance with the principles of equality and mutual advantage.

The Everything But Arms scheme grants the Republic of Yemen full duty-free and quota-free access to the EU Single Market for all products (except arms and armaments).

Unlike under the Standard GSP, countries do not lose EBA status by entering into a Free Trade Agreement with the EU. A ‘graduation mechanism’ for products also does not apply.

To check the detailed requirements for exporting to European Union, please visit the EU Trade Market Access Database (in the following example – export from Yemen with product code 09 01 110000 Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion/ Coffee, not roasted/ Not decaffeinated

GAFTA is one of the most important economic achievements in the area of Arab common work. It contributes to efforts towards establishing the Arab Common Market.

 As of January 1st, 2005, the agreement reached full trade liberalization of goods through the full exemption of customs duties and charges granting equivalent effect amongst all members of the GAFTA, except Sudan and Yemen where customs duties and charges having an equivalent effect are reduced by 16% annually. The reduction has reached full exemption at the end of 2010 (pursuant to the resolution of the Arab League Council at its 14th meeting in Beirut regarding offering less developed Arab countries preferential treatment).

Since 1/1/2005 all agricultural products became exempt from customs duties and other fees and charges having a similar effect and Industrial products from HS Chapters 25 up to 96.

GAFTA 17 nation members are Yemen, Jordan, United Arab Emirates, Bahrain, Saudi Arabia, Oman, Morocco, Syria, Lebanon, Iraq, Egypt, Kuwait, Tunisia, Libya, Sudan, Qatar, and Palestine.

The Generalized System of Preferences (GSP), instituted in 1971 under the aegis of UNCTAD, has contributed over the years to creating an enabling trading environment for developing countries. The following 13 countries grant GSP preferences: Australia, Belarus, Canada, the European Union, Iceland, Japan, Kazakhstan, New Zealand, Norway, the Russian Federation, Switzerland, Turkey and the United States of America.

Australia – Yemen has 100% no duty of products covered under the Australian System of Tariff Preferences since 2016

European Union – Everything But Arms – the Everything But Arms scheme grants Republic of Yemen full duty free and quota free access to the EU Single Market for all products (except arms and armaments)

United Kingdom (UK) – Inherit after BREXIT – the Everything But Arms scheme grants Republic of Yemen full duty free and quota-free access to the UK for all products (except arms and armaments)

Japan – Duty-free and quota-free are special preferential treatments offered to Yemen (list of conditions to qualify as an originating good under the Japanese GSP)

USA – Yemen is benefits from USA Generalized System of Preferences as of October 2016

Turkey – Turkey’s GSP scheme (Decision No: 1995/7606 and Decree No: 2016/1) grant Republic of Yemen suspension of all customs duties on products covered by the GSP scheme of Turkey (special incentive arrangements in accordance with the GSP scheme of the European Union, customs duties have been suspended or reduced in accordance with the sensitivities of the products covered by GSP schemes for Yemen (Everything But Arms)

Switzerland – may withdraw for a certain period the GSP preferences in respect of agricultural products falling under HS chapters 1, 2, 4 to 8, 10 to12 and 15 to 17 for Yemen

Canada provides duty-free access to all products from LDCs with the exception of over-quota tariff items for dairy, poultry and egg products (Canada Customs Tariff)

New Zealand – the preferential tariff rates under the GSP is generally maintained at the duty-free level for Yemen.

China – As of 1 January 2015, 24 LDCs (including Yemen) have completed an exchange of letters of agreement with China concerning the application of duty-free treatment to 97 percent of China’s import tariff lines. Consequently, these countries now benefit from duty free treatment for an additional 655 tariff lines compared to the previous 95 percent level.

Republic of Korea -the total number of items that preferential tariffs are applied for Yemen is 4,802 out of 5,052 items on an HS 6-digit basis, which amounts to 95 percent (link). For a comprehensive list of the products covered are: for industrial products, almost every item is covered except for a small number of sensitive items such as crude oil and petroleum products, and for agricultural and fishery products, 483 items, or about 63 percent, are covered, with the exceptions being some sensitive items including rice, beef, pork, etc.

India – Product coverage and margins of preference under the Duty-Free Tariff Preference Scheme were expanded in April 2014. The scheme now provides for margins of preference or duty free imports for about 98.2 percent of tariff lines (at the Harmonized System 6-digit level). Only 1.8 percent of tariff lines (97 lines) have been retained in the exclusion list and these items receive no duty concessions. The list of items with a margin of preference contains 114 lines and the products are granted specific tariff concessions. The rest of the lines are duty-free.

Japan – Duty-free and quota-free are special preferential treatments offered to all of the least developed countries for all products under the GSP scheme and additional products. Annex 3 of the document contains the list of products (9-digit level of classification) for which duty-free quota-free market access is granted to the least developed countries as of April 2016.

The Republic of Yemen has a Generalized System of Preferences – suspension of customs duties on products with Belarus, Iceland, Kazakhstan, and Russian Federation.