Generalized System of Preferences (GSP) (2024)

FAQs

What are the limitations of GSP? ›

GSP imports of a single product from an individual BDC are limited to a certain value amount, referred to as competitive need limits (CNL). If the CNL is exceeded, the BDC loses its GSP eligibility for that product, unless the President grants a waiver.

U.S. trade preference programs such as the Generalized System of Preferences (GSP) provide opportunities for many of the world's poorest countries to use trade to grow their economies and climb out of poverty. GSP is the largest and oldest U.S. trade preference program.

Expired on December 31, 2020. GSP is the largest and oldest U.S. trade preference program that provides nonreciprocal, duty-free treatment enabling many of the world's developing countries to spur diversity and economic growth through trade.

The Generalised Scheme of Preferences (GSP) is a set of EU rules allowing exporters from developing countries to pay less or no duties on their exports to the European Union.

By removing such import duties, the EU's GSP helps developing countries to alleviate poverty and create jobs based on international values and principles, including labour and human rights, environment and climate protection, and good governance.

The U.S. Generalized System of Preferences (GSP), a program designed to promote economic growth in the developing world, provides preferential duty-free treatment for over 3,500 products from 127 designated beneficiary countries (BDCs) and territories, including 44 least-developed beneficiary developing countries ( ...

The Girl Scouts of the Philippines (GSP) is the national Girl Scouting association for girls and young women in the Philippines. Its mission is "to help girls and young women realize the ideals of womanhood and prepare themselves for their responsibilities in the home, to the nation, and to the world community".

Based on international values and principles, including labour and human rights, the GSP comprises: Standard GSP — tariffs for goods imported from a developing country are reduced or suspended.

Congress first authorized the U.S. program in Title V of the Trade Act of 1974. The European Union and other developed countries have implemented similar programs since the 1970s. The U.S. GSP program expired on December 31, 2020 despite legislative efforts to extend the program in the 116th Congress.

GSP has not been reauthorized since it expired on December 31, 2020. Congress has the power to directly add products to the GSP program. The ITC delivering a report would allow for Congress to make knowledgeable decisions when adding products to the program and ensure no American production is harmed in the process.

What is the GSP regulation? ›

The proposed regulation requires the approval of the Parliament and the Council through the ordinary legislative procedure. The GSP scheme provides free access for least developed countries, and lowers custom duties on two thirds of tariff lines for low and lower-middle income countries.

The Generalized System of Preference (GSP) is a unilateral scheme wherein custom duty preferences or concessions are granted by developed countries to export of specified products from developing countries.

There exist three different GSP mechanisms: Standard GSP, Everything But Arms (EBA), and GSP+. The three mechanisms apply differently to countries with varying needs and strengths at the level of international trade.

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 Standard GSP mechanism supports developing countries by allowing them to export products into the EU single market with reduced tariffs. Contrary to the EBA mechanism, the Standard GSP mechanism does not adapt quotas. Not all products benefit from reduced tariffs.

Competitive Need Limitations (CNL) are predefined import ceilings within the GSP program that deny duty-free access to the US market for products exceeding them. These limitations persist even in the absence of domestic alternatives or demonstrated harm to US industries.

These include most textiles and apparel articles, watches, footwear, handbags, luggage, flat goods, work gloves, and leather apparel. In addition, the GSP statute precludes eligibility for import- sensitive steel, glass, and electronic articles.

The U.S. Generalized System of Preferences (GSP) program provided nonreciprocal, duty-free tariff treatment to certain products imported to the United States from designated beneficiary developing countries (BDCs). Congress first authorized the U.S. program in Title V of the Trade Act of 1974.

Non-alteration rule

Originating products must be transported from the GSP beneficiary country to the EU without being further processed in a third country.