In principle, the US generalised system of preferences (GSP) offers uniform market access to exports from eligible developing countries for a broad set of GSP-eligible products. In practice, realised GSP tariff exemptions demonstrate marked variation across countries, industries and years. In this paper, we identify the sources of discretionary and non-discretionary GSP exclusions and quantify the extent to which competitive needs limitations (CNLs), waivers and additional annual product, country and country-product exclusions drive a wedge between the ‘generalised’ principle of GSP and its implementation in practice."> In principle, the US generalised system of preferences (GSP) offers uniform market access to exports from eligible developing countries for a broad set of GSP-eligible products. In practice, realised GSP tariff exemptions demonstrate marked variation across countries, industries and years. In this paper, we identify the sources of discretionary and non-discretionary GSP exclusions and quantify the extent to which competitive needs limitations (CNLs), waivers and additional annual product, country and country-product exclusions drive a wedge between the ‘generalised’ principle of GSP and its implementation in practice."> In principle, the US generalised system of preferences (GSP) offers uniform market access to exports from eligible developing countries fo">
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The US Generalised System of Preferences in Principle and Practice

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  • Emily Blanchard
  • Shushanik Hakobyan
Abstract
type="main" xml:id="twec12216-abs-0001"> In principle, the US generalised system of preferences (GSP) offers uniform market access to exports from eligible developing countries for a broad set of GSP-eligible products. In practice, realised GSP tariff exemptions demonstrate marked variation across countries, industries and years. In this paper, we identify the sources of discretionary and non-discretionary GSP exclusions and quantify the extent to which competitive needs limitations (CNLs), waivers and additional annual product, country and country-product exclusions drive a wedge between the ‘generalised’ principle of GSP and its implementation in practice.

Suggested Citation

  • Emily Blanchard & Shushanik Hakobyan, 2015. "The US Generalised System of Preferences in Principle and Practice," The World Economy, Wiley Blackwell, vol. 38(3), pages 399-424, March.
    • Handle: RePEc:bla:worlde:v:38:y:2015:i:3:p:399-424
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    File URL: http://hdl.handle.net/10.1111/twec.2015.38.issue-3
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    Cited by:

    1. Shushanik Hakobyan, 2020. "GSP expiration and declining exports from developing countries," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(3), pages 1132-1161, August.
    2. Shushanik Hakobyan, 2017. "Export Competitiveness of Developing Countries and US Trade Policy," The World Economy, Wiley Blackwell, vol. 40(7), pages 1405-1429, July.
    3. Bown, Chad & Crowley, Meredith A., 2016. "The Empirical Landscape of Trade Policy," CEPR Discussion Papers 11216, C.E.P.R. Discussion Papers.
    4. Shushanik Hakobyan, 2015. "Accounting for underutilization of trade preference programs: The US generalized system of preferences," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(2), pages 408-436, May.
    5. Gassebner, Martin & Gnutzmann-Mkrtchyan, Arevik, 2018. "Politicized trade: What drives withdrawal of trade preferences?," Economics Letters, Elsevier, vol. 167(C), pages 10-13.
    6. Albornoz, Facundo & Brambilla, Irene & Ornelas, Emanuel, 2021. "Firm export responses to tariff hikes," LSE Research Online Documents on Economics 113920, London School of Economics and Political Science, LSE Library.
    7. Emilie M. Hafner-Burton & Layna Mosley & Robert Galantucci, 2019. "Protecting Workers Abroad and Industries at Home: Rights-based Conditionality in Trade Preference Programs," Journal of Conflict Resolution, Peace Science Society (International), vol. 63(5), pages 1253-1282, May.
    8. Anupa Sharma & Jason Grant & Kathryn Boys, 2021. "Truly Preferential Treatment? Reconsidering the Generalised System of (Trade) Preferences with Competing Suppliers," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 500-524, June.

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