New Delhi, Jan. 23 -- The European Union Generalised System of preferences (GSP) regulation impacts only 2.66% of India's exports to the European Union, underscoring the limited trade effect of EU's GSP Regulations 2025, effective from January 1 this year, according to an official from the Commerce Ministry.

The European Union's Generalised System of Preferences (GSP) is a unilateral trade preference scheme under which the EU grants reduced or zero customs duties to imports from developing and least-developed countries.

The GSP is non-reciprocal and operates as an exception to the WTO's Most-Favoured-Nation (MFN) principle. Its permanent legal basis under WTO law is the 1979 Enabling Clause, which allows developed countries to grant dif...