The Generalized System of Preferences, or GSP, is a formal system of exemption from the more general rules of the World Trade Organization (WTO), (formerly, the General Agreement on Tariffs and Trade or GATT). Specifically, it's a system of exemption from the most favored nation principle (MFN) that obliges WTO member countries to treat the imports of all other WTO member countries no worse than they treat the imports of their "most favored" trading partner. In essence, MFN requires WTO member countries to treat imports coming from all other WTO member countries equally, that is, by imposing equal tariffs on them, etc.
GSP exempts WTO member countries from MFN for the purpose of lowering tariffs for the least developed countries, without also lowering tariffs for rich countries.
Read more about Generalized System Of Preferences: History, Effects
Famous quotes containing the words generalized, system and/or preferences:
“One is conscious of no brave and noble earnestness in it, of no generalized passion for intellectual and spiritual adventure, of no organized determination to think things out. What is there is a highly self-conscious and insipid correctness, a bloodless respectability submergence of matter in manner—in brief, what is there is the feeble, uninspiring quality of German painting and English music.”
—H.L. (Henry Lewis)
“I need not say what match I would touch, what system endeavor to blow up; but as I love my life, I would side with the light, and let the dark earth roll from under me, calling my mother and my brother to follow.”
—Henry David Thoreau (1817–1862)
“This is the great truth life has to teach us ... that gratification of our individual desires and expression of our personal preferences without consideration for their effect upon others brings in the end nothing but ruin and devastation.”
—Hortense Odlum (1892–?)