Undermining of trade preferences by non-tariff measures

Name(s): 
Non-uniformity of tariff and non-tariff trade preferences
Nature 
Under the generalized system of preferences (GSP), preference-giving countries extend tariff preferences to certain products exported from designated beneficiary countries while retaining most-favoured-nation duties on imports from non-preferred supply sources (developed countries). Tariff preferences are intended to stimulate exports from beneficiaries and encourage investment in export-related activities. When exports of GSP-covered products confront non-tariff measures (NTMs) in markets of preference-giving countries, beneficiaries find it difficult to expand exports in response to tariff preferences, since NTMs counter the price incentives inherent in the preferential tariff margins.
Incidence 
Almost one quarter ($7.7 billion) of GSP-covered products ($33.3 billion) in 1986 trade terms were affected by NTMs in 10 OECD preference-giving countries.
Claim 
NTMs constitute an important deterrent to imports of GSP-covered products. Preference-giving countries should take appropriate action to deal with the NTMs which limit access to GSP preferential treatment. In this regard, an important means by which improved utilization of the GSP could be achieved would be to exempt GSP-covered products from NTMs used in market of preference-giving countries.
Broader 
Unbridled economic competition
Preferential trade arrangements
International differences in trading practices
Aggravates 
Trade barriers against developing countries [in 1 loop]
Weakness in trade among developing countries
Aggravated by 
Non-tariff barriers to international trade
Reference(s) 
Clarke, Don P: Incidence of Non-Tariff Measures on Imports of GSP-Covered Products
Type 
(E) Emanations of other problems