Despite the inconsistency with the principles of reciprocity and non-discrimination
of GATT, a special waiver for GSP was temporarily approved by the GATT members
in 1971, and made permanently in 1979 through the “Enabling Clause” of the Tokyo
Round agreements, that allow developed countries to give differential and more
favourable treatment to developing countries (Grossman and Sykes, 2005). Soon after
the adoption by the UNCTAD, the European Union was the first to implement a
“Generalised System of Tariff Preferences” in 1971. The GSP is an autonomous trade
arrangement through which, the EU provides unilateral preferential access to its
market to 176 developing countries and territories, in the form of either duty-free
access or reduced tariffs for their goods entering the EU market.
a. The current GSP regime
Once the legal framework was established in 1971, the EU presented the first cycle of
its GSP scheme soon afterwards. Since then, a new cycle has been launched every ten
years. Apart from most manufactured and semi-manufactured products from eligible
beneficiary countries, certain processed agricultural goods also enjoyed full or partial
tariff exemptions. Separate regulations were in place for textiles and for products
covered by the European Coal and Steel Community Treaty. The amount of
preferential imports was also limited through quotas and ceilings, which differed
depending on the origin of the imports and the product group. Such quantitative
restrictions, and other preconditions specific to certain countries and products, were
prolonged or revised every year. Since the first period after its inception, the EU’s GSP
scheme has been revised several times.