Generalised System of Preference (GSP)
What is Generalised System of Preference?
At a conference held at the United Nations (UN) on Trade and Development, over 50 years ago, developed countries were requested to support the integration of developing countries into the economy of the world. From that moment on, the Generalised System of Preference was introduced.
Generally, GSP is the removal of tariff from the product imported into the European Union (EU) and other developed countries from the least developed nations. This system was introduced to help the selected nations (beneficiary countries) to alleviate poverty and for the creation of jobs. In principle, the scheme will support labour and human right on the basis of the international value.