Abstract:
The Generalized System of Preferences (GSP) is a popular preferential tariff system which is excluded from regular rules of the World Trade Organization (WTO). Many developing countries including Sri Lanka have granted the GSP benefit from the European Union (EU) and some other developed countries like United States of America. This article has discussed the importance of the GSP as a preferential tariff system in view of advantages, disadvantages and effects of withdrawing it from the European Union. The paper has revealed that the withdrawal of GSP plus from the European Union was not negatively affected on Sri Lankan foreign trade volume and values. The analysis was totally based on the secondary information such as custom reports, books and the internet.
