Conceived by the G77 as a platform for South-South cooperation, negotiated within UNCTAD and established in 1989, the Global System of Trade Preferences (GSTP) is a framework for preferential tariff reduction through rounds.
Against this background, in the framework of the 18th Annual General, held in hybrid format (Geneva and online) on 6 July 2023, UNCTAD presented the state of play of ratification of this agreement, key benefits and emerging issues for cooperation.
Substantive report
Conceived by the G77 as a platform for South-South cooperation, negotiated within UNCTAD and established in 1989, the Global System of Trade Preferences (GSTP) is a framework for preferential tariff reduction through rounds.
As of today, the GSTP features 42 participants and USD 16 trillion market, in the framework of South-South cooperation.
Concluded in 2010 after 6 years of negotiations, the Säo Paulo Round reduced tariffs by 20% on 70% tariff lines. The key issue today is that only one ratification is needed before its entry into force (India, Malaysia, Cuba, and Argentina, Brazil & Uruguay among Mercosur have already ratified it).
Moreover, an emerging issue for cooperation is on environmental goods, services and technology s removing tariffs and addressing Non-Tariff Measures (NTMs) on these goods would help in energy transition and meeting the Nationally Determined Contributions (NDCs) under the Paris Agreement.
Presentation