The Global System of Trade Preferences Among Developing Countries

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The Global System of Trade Preferences Among
Developing Countries

• GSTP/SGPC

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GSTP/SGPC

• Background
• Scope of Cooperation
• Implementation
• Third Round of Negotiations
• Discussion

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BackgroundThe Road to the Agreement

• Mexico City, 1976
• Arusha, 1979
• Caracas, 1981
• New York, 1982
• Geneva
• New Delhi, 1985
• Brasilia, 1986
• Belgrade, 1988

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Background Mexico City

• The Group of 77 called for the establishment of a
  global system of trade preferences among
  developing countries.

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Background Arusha and Caracas

• The Group of 77 further developed the idea of a
  global system of trade preferences among
  developing countries.

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Background New York

• Ministers defined the basic components of a gstp.
• Ministers established a framework for
  negotiations.

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Background Geneva

• The GSTP Negotiating Committee began work on a
  global system of trade preferences.

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Background New Delhi

• Ministers agreed on a global system based on a
  legal foundation of rules.

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Background Brasilia

• Ministers launched the First Round of
  negotiations on tariff preferences.
• Ministers adopted the GSTP as a provisional legal
  framework.

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Background Belgrade

• Ministers adopted the text of the GSTP Agreement.
• Ministers noted the conclusion of the First Round
  of negotiations.
• Ministers urged ratification of the Agreement.

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Scope of Cooperation Measures

• Tariffs
• Para-tariffs
• Non-tariff measures
• Direct trade measures
• Sectoral agreements

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Scope of Cooperation Rules

• Modification of concessions
• Rules of origin
• Safeguards
• Settlement of Disputes

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Scope of Cooperation Parties

• Forty-three Participants
• Africa - 14
• Asia - 15
• Latin America -14
• Least Developed Participants
• Bangladesh
• Benin
• Guinea
• Mozambique
• Myanmar
• Sudan
• Tanzania

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Implementation The Beginning

• The Agreement entered into force in April 1989.
• It entered into force for India on 19 April 1989.

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Implementation The Beginning

• The GSTP Committee of Participants composed of
  representatives of GSTP Participants - organized
  its program of work.
• Rules of origin
• Second Round of negotiations
• Dissemination of the Agreement

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Implementation The 1990s

• In Belgrade, Ministers called for negotiations to
  broaden and deepen tariff concessions.
• The GSTP Committee of Participants convened the
  Second Round of Negotiations.

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Implementation The Present Decade

• Conclusion of the Second Round in 1998.
• Review of the Agreement in 2001.
• Convening of the Third Round of negotiations in
  Sao Paulo, Brazil in 2004.

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Rounds of Negotiations

• 1st Round, Brasilia
• 2nd Round, Tehran
• 3rd Round, Sao Paulo

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First Round Brasilia

• Scope of tariff concessions

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First Round Brasilia

• Concessions of India

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First Round Concessions
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Second Round Tehran

• Scope of concessions
• Accession of Colombia, Morocco, Myanmar and
  Venezuela
• Accession of MERCOSUR

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Third Round Sao Paulo

• Sao Paulo Declaration
• Program of work
• Negotiating Committee
• Market Access Group
• Rules Group
• Issues
• Mutuality of advantage
• Techniques of negotiations
• Time-table
• Senior Officials meeting in December 2006

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Third Round Work Program

• Market Access
• Preferential tariffs
• Non-tariff measures
• Rules of origin
• Value-added criterion
• Supplementary criteria

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Third Round Market Access

• Techniques and modalities
• Request Offer
• Formula approach
• Combination
• Product coverage
• Sensitive products
• Treatment of the least developed Participants

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Third Round Rules of Origin

• Certification Procedures and Administrative
  Cooperation
• Proposals
• 50 threshold
• Insufficient processing

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Third Round

• Applications for Accession
• Burkina Faso
• Burundi
• Haiti
• Madagascar
• Mauritania
• Rwanda
• Suriname
• Uganda
• Uruguay

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Third Round

• Target date for completion
• Tasks of the Negotiating Committee
• Conclusion of the Round

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Discussion

• Interregional regional trade
• Export market diversification
• Small and medium scale producers
• Cost-effective negotiations
• Practical measures

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Participants Africa

• Algeria, Benin
• Benin, Cameroon
• Egypt, Ghana
• Guinea, Libya
• Morocco, Mozambique
• Nigeria, Sudan
• Tanzania, Tunisia
• Zimbabwe

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Participants Asia

• Bangladesh, DPRKorea
• India, Indonesia
• Iran, Iraq
• Malaysia, Myanmar
• Pakistan, Philippines
• RoKorea, Singapore
• Sri Lanka, Thailand
• Vietnam

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Participants Latin America

• Argentina, Bolivia
• Brazil, Chile
• Colombia, Cuba
• Ecuador, Guyana
• MERCOSUR, Mexico
• Nicaragua, Peru
• Trinidad Tobago
• Venezuela

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Discussion

• Export market diversification
• Small and medium scale producers
• Cost-effective negotiations
• Practical measures

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India Exports to major trading partners and
duties faced
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India Exports to major trading partners and
duties faced
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Discussion

• Small and medium scale producers
• Cost-effective negotiations
• Practical measures