M.F.N. Tariff Reductions and the G.S.P.
Soon after the introduction of the first G.S.P. scheme in 1971 and before the United States introduced the last scheme in 1976, the big three G.S.P. donors (the United States, the E.E.C. and Japan) set the stage for a new round of multilateral tariff negotiations (the so-called M.T.N.). As of this date, the negotiations have not yielded any concrete results but are still actively proceeding. If the end-result is anything like that which emerged from the Kennedy Round, where duties on manufactured products were reduced by an average of 35 per cent, this new round of tariff negotiations will have dire implications for the continuing value of the G.S.P. as a trade policy benefiting the developing countries.
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