Generalised System of Preferences (GSP) – Withdrawal & its Impacts on India

As President Donald Trump showed the intention of the United States to withdraw the Generalised System of Preferences, popularly referred to as GSP, from India, IAS EXPRESS takes a look at the programme, its benefits and what it means now that it may be revoked.

What is the Generalized System of Preferences (GSP)?

• Generalized System of Preferences (GSP) is a preferential tariff system provided by developed economies such as the US, EU, UK, Japan, etc. to developing economies like India, Pakistan, etc.
• Preferential tariff means allowing imports with tariffs that are zero or low. Note: Tariff means a government tax on imports or exports.