Consider the following statements about Generalized System of Preferences GSP 1It was developed unde...........

Economic Affairs World Bank and IMF

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Consider the following statements about Generalized System of Preferences (GSP):

1It was developed under the aegis of World Bank.

2.Under the scheme a nation allows duty-free and quota-free market access for exports from other nation.

3.Germany is the only developed EU country that doesn’t grant GSP to Indian exports.

Which of the statements given above is/ are correct?

1 and 2 only

2 only

1 and 3 only

1, 2 and 3

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Explanation:

2 only

It is incorrect that the Generalized System of Preferences (GSP) was developed under the aegis of the World Bank. The GSP is a preferential tariff system that is unilaterally granted by developed countries to developing countries. It is not directly developed under the World Bank's auspices.

The statement "Under the scheme, a nation allows duty-free and quota-free market access for exports from other nations" is correct. This is the fundamental principle of the Generalized System of Preferences. Developed countries provide preferential treatment to imports from developing countries by offering reduced or eliminated tariffs.

The statement about Germany not granting GSP to Indian exports is incorrect. Germany is part of the European Union (EU), and the EU as a whole does provide GSP benefits to eligible countries, including India. However, the exact details of GSP schemes and preferences may vary among EU member countries.

Therefore, only statement 2 is correct.