It can tentatively be deduced from the previous analysis that the EU’s GSP scheme provides a typical development process of “GSP life cycle” (Cuyvers and Verherstraeten, 2005). In the first stage, the developing countries need to get adjusted and accustomed to the GSP arrangements. During this stage, some beneficiaries manage to push up their preferential exports to the EU under the GSP scheme, gradually gaining a competitive edge in certain sectors. In the second stage, the GSP beneficiaries get familiar with the scheme and also reach higher utilization rates than before. Cambodia, Laos and Vietnam are in this stage. In the third stage, total exports to the EU will keep on rising and the ratio of preferential exports to total exports will start falling due to some sector graduation. For this stage, Thailand is a case in point. In the last stage, the beneficiary countries are completely excluded from the GSP scheme, while these countries reached a high level of development and can sufficiently diversify their exports to the world markets. Singapore is an example of a country at this stage