GSP, or the Generalized System of Preferences, is a trade program designed to promote economic growth in developing countries by providing preferential duty-free entry for products from beneficiary countries and territories.
Myanmar was educated during its occupation by the British and possesses rich natural resources, however it remains a poor nation due to many years of instability. As a result, our products are categorized to receive General System Preferences. This allows our customers around the world to receive our products duty-free or with significant reductions on import duties. We are not experts pr familiar with the specific rules of all countries, so it is important that you check with your customs broker. However, many top nations receive duty-free imports.
Here's how GSP benefits customers and supports underdeveloped countries:
Benefits to Customers
- Lower Prices: By eliminating or vastly reducing duties on products imported from beneficiary countries, GSP reduces costs for consumers in developed countries. This makes products cheaper, ranging from handmade, craftware, clothing and footwear to industrial goods.
- Support for Ethical Choices: Customers who are concerned about supporting development in poorer countries can purchase products that contribute directly to these regions' economic growth.
Support for Underdeveloped Countries
- Economic Growth: GSP provides an incentive for businesses in developing countries to increase exports. This can lead to higher employment rates and foster growth in local economies.
- Reduced Poverty: Increased export earnings can help to reduce poverty by generating more economic activities and opportunities in the poorer regions of the world.
- Industrialization: By focusing on non-traditional exports, such as manufacturing and processed goods, GSP helps these countries move up the industrial ladder.
- Stability: Economic growth can lead to more stable societies by providing jobs and economic opportunities that may reduce conflict and insecurity.
Reason for Implementing GSP
The primary reason for the existence of GSP is the desire of developed countries to support the economic development of poorer nations. This is not only a gesture of goodwill but also a strategic move to foster future trading partners and create more stable economies and societies globally. Developed countries benefit from creating new markets for their products and services and promoting political stability through economic development.
In summary, GSP acts as a tool for economic leverage, social improvement, and global stability, providing measurable benefits to both consumers in developed countries and the economies of developing countries.