Generalised Scheme of Preferences (GSP)
Preferential tariff regime unilaterally granted by developed countries to developing nations to support their integration into global trade.
Principle and legal basis
The Generalised Scheme of Preferences (GSP) is a mechanism whereby developed countries grant tariff reductions or exemptions to products originating in developing countries. Established in 1968 under UNCTAD initiative, it is authorised by the WTO Enabling Clause (1979), which constitutes a derogation from the MFN principle.
The EU's GSP
The EU applies three GSP arrangements (Regulation (EU) 2024/2491):
- Standard GSP: tariff reductions for approximately 66 low- and lower-middle-income countries
- GSP+: full duty removal for vulnerable countries that have ratified 27 international conventions (human rights, labour, environment, good governance)
- Everything But Arms (EBA): full duty-free access for the 46 Least Developed Countries (LDCs), except for arms and ammunition
Conditions for use
To benefit from GSP, exporters must prove preferential origin through the REX (Registered Exporter) system. Specific rules of origin are defined in the delegated regulation and vary by product (sufficient processing, bilateral or regional cumulation).
Common pitfalls
- GSP can be withdrawn by country or sector if imports exceed certain thresholds (graduation mechanism)
- GSP+ requires continuous monitoring of compliance with international conventions
- Regularly check the list of beneficiary countries, which is periodically revised
- Some products are excluded from GSP preferences (certain agricultural and industrial goods deemed sensitive)