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Export Growth With Conditional S&DT
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GATT and its successor the WTO granted developing countries special right and privileges through providing non- reciprocal market access. Generally GSP contributed significantly to industrial development for developing countries. But historically, GSPs are attached with a number of conditions which raised concern about their benefit. Korea being a strategic partner of USA during the cold war, received massive GSP export preference in comparison to other GSP beneficiaries and non-beneficiaries. Moreover USA GSP during the 1970s and early 1980s was less complicated. But GSP after 1990s is attached with a number of stringent and unpredictable conditions. Moreover, countries lack in adopting appropriate industrial policy to utilize the limited product coverage under GSP. Due to the problems in terms of utilization of GSP and the magnitude of preference erosion, the Duty-Free and Quota-Free Market access initiative was extended to the LDCs during the Hong Kong Ministerial of the WTO. But this initiative is also coupled with a number of conditions. Therefore feasibility of the benefit from GSP becomes questionable, unless, the whole system can't be brought under the legal system of WTO.
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