Explained: Generalized System of Preferences (GSP)

US President Donald Trump plans to end the preferential trade status granted to India.

Normally, developed countries offer import duty sops to underdeveloped and developing ones for import of goods. These incentives are not available to other developed countries from whom the goods are being sourced. Such a sustem of preferential treatment to developing countries is known as generalized system of preferences (GSP) in trade parlance.

Watch the video lecture to know more!