The not‐so‐generalised effects of the Generalized System of Preferences

Subject Outlook for US policy engagement with Myanmar as the US presidential transition nears. Significance The White House is preparing to lift most remaining US sanctions on Myanmar, after President Barack Obama's September 14 announcement to this effect when he met Myanmar State Counsellor Aung San Suu Kyi. Washington will also restore Myanmar's access to the US Generalized System of Preferences (GSP) because of recent improvements in labour rights. Supporting Myanmar's democratic 'transition' has been a key Obama policy and the president is attempting to fix progress before his successor takes office in January 2017. Impacts Myanmar's government will deepen ties with Beijing, but not necessarily to the extent of eclipsing US ties. The Rohingya issue will still cause some friction in Myanmar-US ties. Policy gaps and delays on Myanmar between the US Congress and next president may expand.

European Communities – Conditions for the Granting of Tariff Preferences to Developing Countries (WT/DS246/AB/R)

World Trade Review ◽

10.1017/s1474745606001455 ◽

2006 ◽

Vol 5 (S1) ◽

pp. 220-253 ◽

Cited By ~ 1

Author(s):

Gene M. Grossman ◽

Alan O. Sykes

Keyword(s):

Developing Countries ◽

Legal Authority ◽

Most Favored Nation ◽

Policy Area ◽

Generalized System ◽

Preferential Tariff ◽

Generalized System Of Preferences ◽

Trade Preferences ◽

Enabling Clause ◽

Unanimous Agreement

The WTO case brought by India in 2002 to challenge aspects of the European Communities’ Generalized System of Preferences (GSP) brings fresh scrutiny to a policy area that has received little attention in recent years – trade preferences for developing countries. The idea for such preferences emerged from the first United Nations Conference on Trade and Development (UNCTAD) in 1964. The ensuing negotiations led to Resolution 21(ii) at the second session of UNCTAD in 1968, acknowledging “unanimous agreement” in favor of the establishment of preferential arrangements. Tariff discrimination violates the most-favored nation (MFN) obligation of General Agreement on Tariffs and Trade (GATT) Art. I, however, and thus the legal authority for preferential tariff schemes had to await a GATT waiver of this obligation, which came in 1971. The waiver was to expire after 10 years, but the authority for preferences was extended by the GATT Contracting Parties Decision of November 28, 1979 on Differential and More Favorable Treatment, Reciprocity and Fuller Participation of Developing Countries, popularly known as the “Enabling Clause,” and now incorporated into the law of the WTO along with the GATT itself.