Generalized System of Preferences

Generalized System of Preferences (GSP)
Agreements by members of GATT (now the World Trade Organization, WTO) to grant market access to the exports of less developed countries subject to preferentially lower tariffs than the normal level. GSP agreements were made by various European countries and Japan in 1971–2, by Canada in 1974 and by the US in 1976. The GSPs were subject to various exceptions concerning sensitive sectors, such as textiles, and never affected very much international trade. Their value has been eroded by the tariff reductions negotiated over recent decades.