Generalized System of Preferences (GSP)

The Generalized System of Preferences allows developed countries to grant preferential tariff treatment for products from developing and least developed countries. Each country may define the advantages granted in its GSP scheme, determining the beneficiary countries, the scope and level of the preferences. The GSP schemes are, therefore, national. Usually, they remain valid for fixed periods of time, being periodically renewed.

The System has been formalized, at the World Trade Organization (WTO), by Decision L/4903 of 1979, entitled "Differential and more favorable treatment, reciprocity and fuller participation of developing countries" (known as the Enabling Clause). The Enabling Clause ensures a permanent exemption from the most favored nation clause by allowing developed countries to grant preferential treatment to beneficiaries of their GSP schemes.

Brazil does not benefit from all existing programs, whose rules are different in each country. The WTO maintains a database on preferential trade arrangements with more information on each program, including the beneficiary countries.  UNCTAD’s official website, in addition, offers a compilation of handbooks on GSP schemes, as well as a consolidated list of beneficiary countries.