The US Generalised System of Preferences in Principle and 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.