Trade Effects of the Generalized System of Preferences

All the developed countries that agreed to be donors under the proposal for Generalized System of Preferences (GSP) adopted at the first UNCTAD session in 1964, have introduced their individu"l (GSP) schemes) Under these schemes. imports of a large number of manufactures and semimanufactures from less. developed countries are permitted at zero or reduced tariff rates up to a certain maximum amount. The full tariff rates continue to apply to imports from other countries. Attention has focused on the institutional arrangements underlying the schemes, the nature and possible effects of quantitative limitations such as. import ceilings and tariff quotas, and the estimation of probable demand responses to preferential tariff cuts in developed countries under specific schemes. 13, 4, 8, 11, 12, 13 and 14].