GSP scheme of Canada

Canada´s General Preferential Tariff (GPT) - Canada´s designation for the GSP scheme - came into effect on July 1974.The scheme is reviewed and modified periodically. The current scheme is to expire on 31 December 2024.
Canadian legislation implementing a system of tariff preferences in favor of developing countries was brought into effect on 1 July 1974 as part of a concerted international effort by industrialized countries to help developing countries expand their exports and thereby increase their foreign exchange earnings.
Consequently, Canada´s General Preferential Tariff (GPT) – Canada´s designation for the GSP scheme – came into force, and it has been extended several times. Most recently, it was extended until 30 June 2014.1 The GPT rates and coverage were modified several times. A major review was undertaken in 1995 to take into account the effect of erosion on the margin of preference resulting from the tariff reductions under the Uruguay Round of Multilateral Trade Negotiations. This action led to an expansion of product coverage and lower GPT rates of duty. Also, Canada expanded product coverage and eased the origin requirements for least developed countries (LDCs). Least Developed Country Tariff (LDCT) is the designation for LDC tariff rates under the Canadian GSP scheme. It should be noted that all countries entitled to LDCT treatment are also GPT beneficiaries. Canada grants tariff preferences for selected agricultural and industrial products of export interest to developing countries. Some products, such as certain textiles and apparel, footwear, and chemical products are excluded from GPT. For LDCs, with the exception of over-access dairy, poultry and egg products, Canada provides LDCT to all imports from these countries. The GPT rates range from duty-free to reductions in the most-favored nation rate, while the LDCT rates are duty-free.