K. M. Bagdasaryan. Evolution of the Generalized Scheme of Preferences

UDК 339.13.027.2 

DOI: 10.15507/2413-1407.119.030.202202.278-297 


Introduction. The revision of the old U.S. rules of assigning developing country status under the law of countervailing duties in 2020 theoretically symbolizes another stage in the evolution of the Generalized Scheme of Preferences, but practically means a new form of battle for international competitiveness. There is no common criterion for determination of developing countries, either at the level of international organizations, including the World Trade Organization, or at the level of donor countries, while the list of least developed countries is determined by the United Nations, and they automatically become recipients of tariff preferences under the Generalized Scheme of Preferences. In this regard, the main idea and purpose of the study is to identify the applied aspects of the development of the international system of GSP and criteria for identifying developing countries to improve the system of tariff preferences EAEU and increase the competitiveness of goods produced in the domestic market.

Materials and Methods. The paper reviews established rules within the GSP and features of the functioning of this system in the U.S., Canada, Japan, Britain and such integration groupings as the European Union, Commonwealth of Independent States and EAEU. To identify main aspects of this transformation it has been used the method of cross-country comparison, as well as methods of systematic and comparative analysis of relevant international and national legal acts and scientific papers.

Results. We have revealed an international trend that is being formed by the leading economic actors to establish new rules for the functioning of the GSP and the criterion for determining the beneficiary countries. This trend will obviously affect the general rules of international trade within the framework of the World Trade Organization and to some extent will bring changes in its architecture.

Discussion and Conclusion. The process of active unilateral revision of established for half a century international trade rules beyond the framework of international organizations gives to the problem a new systemic character and opens up an opportunity for future studies. It is obvious that we are on the beginning of entire international economic relations system transformation, which at the first stage will be accompanied by negative processes and will require an adequate response from the Russian state authorities, coordinating bodies of the EAEU and interested major economic agents.

Keywords: generalized scheme of preferences, status of developing countries, Gross national income classification, EAEU, Russian Federation, preferential tariffs

Conflict of interests. The author declares that there is no conflict of interest.

Funding. The article was written based on the Russian Academy of National Economy and Public Administration under the President of the Russian Federation state assignment research program.

For citation: Bagdasaryan K.M. Evolution of the Generalized Scheme of Preferences. RegionologyRussian Journal of Regional Studies. 2022;30(2):278297. doi: https://doi.org/10.15507/2413-1407.119.030.202202.278-297


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Submitted 12.11.2021; approved after reviewing 17.01.2022; accepted for publication 26.01.2022.

About the author:

Kniaz M. Bagdasaryan, Research Fellow, International Laboratory of Foreign Trade Research, Institute of Applied Economic Research, the Russian Presidential Academy of National Economy and Public Administration (82 Vernadskiy Ave., Moscow 119571, Russian Federation), Cand. Sci. (Economics), ORCID: https://orcid.org/0000-0003-4162-1076, Researcher ID: AAH-9531-2019bagdasaryan-km@ranepa.ru

The author has read and approved the final version of the manuscript.

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