Generalized System of Preferences (GSP)

GSP:

Generalized System of Preferences (GSP), instituted in 1971 under the aegis of UNCTAD (UN Conference on Trade and Development), has contributed over the years to creating an enabling trading environment for developing countries.

 

About:

Under GSP schemes of preference-giving counties, selected products originating in developing countries are granted reduced or zero tariff rates over the MFN rates. The least developed countries (LDCs) receive special and preferential treatment for a wider coverage of products and deeper tariff cuts.

 

Source: THE Hindu;