European Union Extends Suspension of India’s Trade Preferences Under GSP
The European Union extends the suspension of preferential trade benefits for India under its Generalised Scheme of Preferences (GSP). The decision relates to the EU’s unilateral trade preference policy framework that provides differentiated tariff benefits through multiple tiers.
European Union’s Generalised Scheme of Preferences (GSP):
| Dimension | Key Details |
|---|---|
| Introduced in | 1971 |
| Nature of policy | Establishes a policy of unilateral trade preferences. |
| Provides for | Poverty reduction by expanding exports from vulnerable countries; promoting sustainable development and good governance. |
| Structure | General GSP, GSP+, and Everything but Arms (EBA). |
| General GSP | Duty reductions on 66% of tariff lines for eligible developing countries. |
| GSP+ | Zero duties on 66% of tariff lines for countries that implement core human rights, labor, and sustainability conventions. |
| Everything but Arms | Full duty-free access for Least Developed Countries (LDCs) on all imports except weapons. |