Generalized System of Preferences (GSP)

The GSP is a system whereby developed countries grant preferential treatment to eligible products imported from developing countries. The preference-granting country is also known as the donor and the preference receiving country as the beneficiary. The GSP is an officially agreed exception to the WTO MFN principle. The GSP was adopted at the second United Nations Conference on Trade and Development (UNCTAD) in 1968 and granted a permanent GATT MFN waiver in 1979 (Tokyo Round of Multilateral Trade Negotiations).  The intent of the GSP was to assist developing countries to further integrate into the global trading system by offering access to developed markets on preferential duty terms The donor countries grant, not necessarily duty-free access, but reduced duties i.e.lower than the MFN rates.

For Jamaica, GSP Donor Countries are: 

• Australia
• Belarus
• Japan
• New Zealand
• Norway
• Russian Federation
• Switzerland

Although the European Union and the USA offer GSP schemes, Jamaica trades with them primarily under the EPA and CBI respectively, as well as the WTO MFN level.