What is Generalized System of Preferences (GSP)?

Image:interimvalleyThe Generalized System of Preferences (GSP) is a generalised, non-reciprocal and nondiscriminatory
preference scheme beneficial to developing countries (also known as
preference receiving countries or beneficiary countries) extended by developed countries
(also known as preference giving countries or donor countries) . It involves reduced MFN
Tariffs or duty-free entry of eligible products exported by beneficiary countries to the
markets of donor countries.
The basic principle behind GSP program worldwide is to provide developing countries with
unilateral preferential market access to developed-country markets in order to spur economic
growth in poorer countries. T
The main objectives of granting trade preferences to developing countries are to:
• Enhance their export earnings;
• Promote industrialization, and
• Encourage the diversification of their economies.
Countries that extend GSP benefits:
Presently, 29 preference giving countries are extending GSP concession through their
respective Schemes. These are Australia, Canada, Czech Republic, European Union,
Japan, New Zealand, Norway, Bulgaria, Hungary, Poland, Russian Federation, Slovakia,
Switzerland, and USA.
It is to be noted that the GSP schemes offered by the various donor countries and their
rules of origin differ fundamentally. Goods complying with the conditions of the GSP of
the USA, for example, will not necessarily comply with the EU GSP.
Bangladesh as a Least Developed Country (LDC) is enjoying duty free market access or reduced tariff rate facilities to export to various developed and developing countries in the world. This facility is enhanced and privileged by the membership of World Trade Organization (WTO). Besides,

Bangladesh is the member of different regional trade blocs. Thus the country enjoys duty free or reduced tariff rate access to other member countries.
WTO members always recognize the necessity of providing Duty Free Quota Free (DFQF) market access to LDCs. It was decided in the 6th WTO Ministerial Conference held in Hong Kong in 2005. All developed countries will provide DFQF market access to LDCs for at least 97% tariff lines. Bangladesh is getting DFQF market access to different markets.This is the first legally binding decision on DFQF for LDCs.
Bangladesh is getting GSP facilities from 38 countries;
European Union – 28 countries.
Others - Australia, Belarus, Canada, Liechtenstein, Japan, New Zealand, Norway, Russian Federation, Switzerland and Turkey – 10 countries.
Category and Tags
Add a comment
More stories by
Reasons Behind Young American Moving to Japan

Below Mentioned are the points found in one of our research that  Reasons Behind Young American Moving to Japan :1.

What is direct wages?

Direct wage is the wage which can be easily and conveniently identified.

First launch of SpaceX’s revamped Falcon 9 carries Bangladesh’s space ambitions

Today brings historic firsts for both SpaceX and Bangladesh: the former is sending up the final, highly updated revision of its Falcon 9 rocket for the first time, and the latter is launching its first satellite.

Why Good Employees Leave?

A study came up with this surprising finding, if you are losing good people, look to their immediate supervisor.

Elon Musk Has Deleted His Facebook Account

Entrepreneur Guru Elon Musk has deleted his Facebook account as well as the official accounts of Tesla and SpaceX.

Follow Business Habit on Facebook, Twitter