Namibia is de facto locked into the EU–South Africa free trade agreement but trades de jure under the Cotonou Agreement. Considering that the trading component of the Cotonou Agreement expires by the end of this year and SADC EPA negotiations are considerably delayed, Namibia might receive EU market access under the General System of Preferences (GSP) from 01 January 2008 on. The study is part of the Namibia Trade and Poverty Programme. It aims to bring empirical evidence to the economic and socio–economic relevance of EU preference for Namibia and to quantify and qualify the possible loss of these preferences. This includes the identification of the economic and socio–economic importance of EU preferences including their relevance for employment, diversification, Government policies, and poverty alleviation.