SPG / GSP

The Generalized System of Preferences (GSP) is a trade program designed to promote the economic development of developing countries. By offering tariff reductions or duty exemptions on certain products, the GSP aims to facilitate these countries' access to developed markets, thereby stimulating their economic growth.

How does the GSP work?

The GSP allows beneficiary countries to export certain products to developed countries at preferential rates. This means that the concerned products can be imported with reduced or even zero tariffs, making them more competitive in the international market. Eligible products and access conditions vary according to countries and existing bilateral or multilateral agreements.

Benefits for beneficiary countries

1. Market access: Developing countries can more easily access developed countries' markets, thereby increasing their exports.
2. Economic diversification: By boosting exports, the GSP encourages the diversification of local economies, reducing their dependence on a limited number of products or markets.
3. Job creation: The increase in exports can lead to a rise in local production, thus creating new jobs.

Practical advice

• Check eligibility: Companies in beneficiary countries must ensure that their products are eligible for the GSP and comply with the rules of origin to benefit from preferential rates.
• Stay updated: Lists of eligible products and access conditions can change. It is crucial to stay informed of modifications to maximize the benefits of the GSP.

In conclusion, the GSP is a powerful tool for developing countries, offering them an opportunity for economic growth and integration into global trade. For businesses, understanding and leveraging this system can open new commercial prospects and enhance their international competitiveness.