Generalized System of Preferences

Many of Thailand's exports are also eligible for tariff reductions or duty free classification under the Generalized System of Preferences (GSP). Most industrialized countries grant the GSP providing tariff-free entry to numerous products from over 130 developing countries in the interest of their economic growth. Countries and goods eligible for the GSP are subject to a yearly review and are subject to change after the yearly review. Most manufactured and semi-manufactured products are included on the GSP list as well as selected agricultural, fisheries and primary industrial products. Thailand has recently had to lobby for the continuation of its GSP program with Europe and America, as it is one of the wealthiest countries still benefiting from the program. The United States usually ends GSP privileges for a product if its market share exceeds 50 percent or its export value surpasses US$ 14 million per year. The granting of GSP privileges often pressures the recipient country's intellectual property and labor protection laws as well as the openness of its own market to imports from the granting country.