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GSP Graduation: Will it reduce poverty?

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GSP Graduation: Will it reduce poverty?

Published: October 5, 2011

This policy brief discusses how Europe is reviewing the Generalised System of Preferences (GSP), its broadest-based trade policy to support developing country exports. And how the European Commission has proposed the most radical changes in the scheme’s three-decade history, arguing that this will ‘focus the GSP preferences on the countries most in need’. But will it? This document summarises ODI research to identify the potential impact of the proposals on key exports. The research finds that only a very small part of any gains will accrue to poor countries and that workers in the graduates may be just as poor and vulnerable as those in beneficiary states.

Author: Christopher Stevens, Kate Bird, Jodie Keane, Jane Kennan, Dirk Willem te Velde (Overseas Development Institute) and Kate Higgins (NSI)

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