WHAT IS THE GENERALISED SYSTEM OF PREFERENCES?
The Generalized System of Preferences (GSP), an initiative of the United Nations Conference on Trade and Development (UNCTAD), is operated by all major industrialized nations, known as donor countries, with the basic objectives of increasing the export (foreign exchange) earnings of developing and least developed beneficiary countries, promoting their industrialization and accelerating their rate of economic growth. The GSP, which is essentially a preferential tariff system, provides advantages to developing countries by enabling qualifying products to enter markets of donor countries at reduced or totally eliminated rates of duty, and thus at more competitive prices. Donor countries are, however, not under any obligation in international law to give preferences if concessions are reduced or withdrawn. There are currently 15 national GSP schemes in operation. The following countries grant generalized tariff preferences: Australia, Belarus, Bulgaria, Canada, Czech Republic, European Com
