Goals of the EUs GSP
The EUs GSP has several goals.
Key is obviously to speed up economic growth in developing countries.
Furthermore, many developing countries primarily rely on one or two commodities for export such as garments and food items. Such specialization also creates vulnerability in case of market price fluctuations.
Hence, GSP aim to diversify the economy of developing countries by reducing import tariffs on many goods. Through tariff reductions the production of goods can become more competitive on the international market. This often also leads to an increase of Foreign Direct Investments in GSP beneficiary countries.
Finally, GSP can also be used as a tool to safeguard the financial and economic interests of the EU by through the use of import quotas and import tariffs. Read more >