Q. Consider the following difference between GSP (Generalized System of Preference) and GSTP (Global System of Trade Preference):

1. While GSP is to reduce tariffs for least developed nations, GSTP is to increase trade among developing countries.
2. While GSP works under the framework of UNCTAD, GSTP works under WTO framework.

Which of the above is/are correct?
Answer: Only 1
Notes: GSP (Generalized System of Preference) is a UNCTAD tariff system aimed at reducing tariffs for least developed nations, adopted in 1968. GSTP (Global System of Trade Preferences) promotes trade among developing countries and was established in 1988. The GSP is implemented by countries such as the USA, Canada, Japan, and Switzerland, though the USA has withdrawn its program for Indian exports. The GSTP has 42 members, including India, Bangladesh, Pakistan, and Sri Lanka, but excludes the USA.

This question is part of 40000+ General Studies MCQ Series Course on GKToday Android app. Question Number: 70 in 43. Foreign Trade - Policy, Balance of Trade, Balance of Payment, WTO in above course in App.