---
title: "Generalized System of Preferences — Definition & Meaning"
description: "The Generalized System of Preferences is a trade scheme where developed countries offer tariff concessions to developing nations, aiding their exports."
url: "https://modeldiplomat.com/learn/glossary/generalized-system-of-preferences"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The Generalized System of Preferences is a non-reciprocal, non-discriminatory trade scheme under which developed countries grant tariff concessions on imports from developing countries.
- What is the WTO legal basis for the GSP given that it appears to violate the MFN rule?
- How do GSP, GSP+ and Everything But Arms differ?
- Why is GSP critically important for Bangladesh?
- What did the WTO Appellate Body rule in EC–Tariff Preferences (2004)?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

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In June 2019 the United States, under President Trump, terminated India's beneficiary status under its GSP programme, ending duty-free treatment for roughly USD 5.6 billion of Indian exports.

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