GSP
Also known as: Generalised System of Preferences, Generalised Scheme of Preferences
A unilateral preferential tariff regime under which developed countries grant lower duty rates to imports from designated developing countries.
GSP (Generalised System of Preferences) is a unilateral programme — not a reciprocal FTA — through which developed economies grant reduced or zero tariffs on selected imports from designated developing-country beneficiaries. Major GSP schemes have lapsed or shrunk in the past decade: the US GSP programme has expired and not been renewed; the EU GSP remains active for ~75 beneficiaries; the UK's Developing Countries Trading Scheme replaced its GSP in 2023. Where a GSP scheme has lapsed, importers fall back to MFN rates unless an FTA applies.