Definitions for "Generalized System of Preferences"
A. U.S. program that grants duty-free treatment, on a product-by-product basis, to developing countries. This program is intended to help developing nations start selling to U.S. markets.
Tariff preferences for developing countries, by which developed countries let certain manufactured and semi-manufactured imports from developing countries enter at lower tariffs than the same products from developed countries.
an agreement developed by UNCTAD in 1968 whereby 27 of the world’s richer nations agreed to reduce their import duties on goods imported from developing countries. The GSP is important to developing countries because its programs outline trade concessions that help to equalize the terms of international trade.