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Reference.org
Generalized System of Preferences
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<p>The Generalized System of Preferences, or GSP, is a preferential <a href="/facts/Tariff/NCluKCm2">tariff</a> system which provides tariff reduction on various products. The concept of GSP is very different from the concept of "<a href="/facts/Most_favored_nation/2zuqVbYL">most favored nation</a>" (MFN). MFN status provides equal treatment in the case of tariff being imposed by a nation but in case of GSP differential tariff could be imposed by a nation on various countries depending upon factors such as whether it is a developed country or a developing country. Both the rules comes under the purview of <a href="/facts/WTO/p7hgb1lP">WTO</a>. </p><p>GSP provides tariff reduction for <a href="/facts/Least_developed_countries/8Ss2N44w">least developed countries</a> but MFN is only for not discriminating among WTO members. </p>