Abstract
The European Communities (EC) has developed a Generalized System of Preferences (GSP), including the ‘Special Incentives for Sustainable Development and Good Governance’, also known as GSP+. Under the World Trade Organization (WTO) law, GSPs are generally authorized by the Enabling Clause, allowing developed countries to grant trade preferences to the advantage of developing countries on a non-reciprocal basis. However, trade negotiations and disputes pertaining to these preferences have been some of the most difficult and acrimonious. This article argues that the GSP+ violates the most-favoured-nation (MFN) principle of Article I:1 GATT and therefore is only compliant with WTO law if it can be justified on appropriate legal grounds.
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