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Generalized System of Preference GSP and GATT. GSP stands for Generalized System of Preference. This is a particularly convenient arrangement for the export of garments or other goods to the least developed countries. In addition to quotas in European countries, there is a convenient system called GSP.
Garments made in Underdeveloped countries can be exported duty-free, making them more profitable. With the introduction of the GSP system, the amount of knit garments exports in Bangladesh has increased a lot. Therefore, in the case of garment exports, the importing countries relax some of the conditions required for the export of garments to some of the exporting countries, which is called GSP. Garment importing countries usually provide this GSP facility to developing countries.
Generalized System of Preference GSP and GATT-Below are the names of GSP donor and recipient countries
Generalized System of Preference GSP and GATT-GSP donor countries
(ii) The United States Of America
(vii) EEC Countries
GSP recipient countries
(iv) China etc.
Generalized System of Preference GSP and GATT-GSP Amount:
There is usually no fixed amount of GSP. Importing countries offer different amounts of GSP benefits to exporting countries. However, this amount is usually 12.5%.
Generalized System of Preference GSP and GATT-GSP Receipt Terms:
Importing countries offer GSP benefits to exporting countries under different conditions. Different countries offer this facility under different conditions. The following are some of the conditions for obtaining GSP
1. You have to import clothes from a certain country and make garments and export them to that country. In this case, garments should not be exported to any other country. Imported cloth cannot be sold in the local market.
2. Manufactured garments cannot be marketed in one’s own country.
3. By making the garment within the specified period, it has to be exported abroad within the specified period.
4. Workers should be given opportunities.
5. Trimmings sent by the importer must be attached etc.
The full form of GATT is the General Agreement on Tariff and Trade. It was established on January 1, 1948. The company is headed by the Director-General and is headquartered in Geneva, Switzerland. It has 146 members. Its current name is WTO, meaning World Trade Organization.
The background to the establishment of the GATT is that the global economic downturn began after the First World War. Before the recession was over, the horrors of World War II resurfaced. After the Second World War, world trade collapsed. The effects of the war have led to a major collapse in the economies of most countries, resulting in serious trade irregularities and chaos.
In this context, the need for economic restructuring of the countries concerned was felt through the creation of a balanced trade market. At this time the capitalist countries proposed the establishment of a trade union led by the United States. To this end, capitalist socialism met in Bretton Woods in the United States in July 1944 to reconcile and create economic colonies. The decision to establish GATT was taken at the Bretton Woods Conference. The GATT was later signed in 1948 through multilateral talks on Geneva’s World Trade Policy. Only 23 countries initially signed it. According to the decision taken at this meeting, GATT came into force on January 1, 1947.