Generalized System of Preferences

The Generalized System of Preferences, or GSP, is a preferential tariff system which provides tariff reduction on various products. The concept of GSP is distinct from the concept of "most favored nation" (MFN). MFN status ensures equal treatment in the imposition of a tariff where GSP allows for a differential tariff to be imposed on depending upon factors such as a country's development status. Both the rules comes under the purview of the World Trade Organisation (WTO).

GSP provides tariff reductions for the least developed countries.