Generalized System of Preference 1


Generalized System of Preference 1 :

This is a set of non-reciprocal trade concessions which industrialized countries have agreed to extend to qualified Less Developed Countries (LDCs). It permits duty-free entry of numerous manufactured or agricultural products, in addition to those products already classified as duty-free under MFN status. To qualify for GSP, all articles must satisfy the relevant rules of origin and be imported from the beneficiary country. It is a framework under which developed countries give preferential tariff treatment to manufactured goods imported from certain developing countries. GSP is one element of a coordinated effort by the industrial trading nations to bring developing countries more fully into the international trading system. The U.S. GSP scheme is a system of non-reciprocal tariff preferences for the benefit of these countries. The U.S. conducts annual GSP reviews to consider petitions requesting modification of product coverage and/or country eligibility. United States GSP law requires that a beneficiary country's laws and practices relating to market access, intellectual property rights protection, investment, export practices, and workers rights be considered in all GSP decisions

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