The Generalized System of Preferences and the Comparative Advantage of Less Developed Countries In Manufactures

Zubair Iqbal
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Zubair Iqbal: colleagues at the International Monetary Fund

The Pakistan Development Review, 1974, vol. 13, issue 2, 158-187

Abstract: Development in 1964 was the establishment of a system of preferential tariff rates favouring existing imports from less developed countries under which all developed countries would unilaterally reduce their tariff duties charged on imports from less developed countries while maintaining mostfavoured- nation rates1 on imports from other (developed) countries. The idea was later extended to cover all manufactured products and came to be known as the Generalized System of Preferences (GSP). The first GSP scheme was introduced by the European Economic Community on July 1, 1972. It was followed by schemes of Austria, Denmark, Finland, Ireland, Japan, New Zealand, Sweden, Switzerland and the United Kingdom. Some socialist .countries have also implemented GSP schemes.

Date: 1974
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