International Trade: GSTP

What is the purpose of the Global System of Trade Preferences (GSTP)?

To promote trade among developing countries through preferential tariff reductions.

When was the GSTP established?

In 1989.

Which bloc created the GSTP?

The G77 bloc of developing countries.

How many members does the GSTP have?

42 members across Africa, Asia, and Latin America.

Which organization provides support for the GSTP?

UNCTAD (United Nations Conference on Trade and Development).

What is the highest decision-making organ of the GSTP?

A committee of participants.

What pressing global challenges can the GSTP help address according to UNCTAD's Secretary-General?

Sustainable energy transition, decarbonization, and greater food security.

What technologies are included in the low-carbon technologies (LCTs) for a just energy transition?

Renewable energy technologies from solar, wind, hydro, and sustainable biofuel, along with energy storage and transformation systems.

Which GSTP members are emerging as competitive exporters of LCT products?

Malaysia, Mexico, Singapore, and Thailand.

How can the GSTP framework enhance cooperation in LCT production and trade?

By offering a large, aggregate market and supportive tariff and non-tariff measures.

How can GSTP trade benefit the health sector?

By facilitating manufacturing knowledge sharing, fostering innovation, and diversifying import sources.

What was a major issue faced by GSTP members during the COVID-19 crisis?

Reduced access to medical supplies due to high dependency on a few suppliers.

What potential does the food sector hold for GSTP cooperation?

Sustainable production in agriculture, fisheries, and aquaculture.

What is the average applied most-favoured-nation tariff on agricultural products for GSTP participants?

14.5%.

How does the agricultural export complementarity among GSTP participants benefit food security?

Different climatic zones and varied consumption cultures enhance access, availability, and affordability.

What role can the GSTP play in promoting a circular economy?

By leveraging natural resources to protect the environment, create jobs, and develop new sectors.

What natural materials do GSTP members have an advantage in producing?

Seaweed, bamboo, jute, coconut husks, bagasse, sisal, and corn husks.

How can trading natural materials among GSTP participants help the environment?

By gradually reducing plastic pollution and improving sustainability and circularity in value chains.

What is required for tariff reductions under the GSTP to take effect in some countries?

Ratification in those countries.

What types of barriers need to be addressed for trade efficiency under the GSTP?

Non-tariff barriers such as regulations, standards, and logistics.

What is the goal of members using the GSTP beyond a symbolic agreement?

To achieve real trade and sustainable development outcomes.

Why is the GSTP important in the context of polycrises?

It provides a platform for the Global South to collaborate and reduce dependency on high-income countries.

How can the GSTP help reduce vulnerabilities for its members?

By decreasing dependency on imports, exposure to price shocks, and lack of diversified supply sources.