Negotiating trade preferences

Description

Negotiating trade preferences involves structured dialogue and agreement between countries or groups to grant favorable terms—such as reduced tariffs or quotas—on specific goods or services. This strategy aims to enhance market access, stimulate economic growth, and address trade imbalances, particularly benefiting developing economies. By establishing clear, mutually beneficial terms, it remedies barriers to trade, fosters cooperation, and supports equitable participation in global markets, while mitigating the adverse effects of protectionism and economic disparity.

Implementation

The UN Conference on Trade and Development (UNCTAD) has worked to obtain special trade preferences for developing countries to export their products to developed countries. It has also negotiated international commodities agreements to ensure fair prices for developing countries.

The EEC/EU's Generalized System of Preferences (GSP) scheme was approved on 19th December 1994, and came into force January 1st 1995 to 31 December 1998.

Claim

The second round of negotiations of the Global System of Trade Preferences among Developing Countries (GSTP) has now been concluded. It would be worthwhile considering the further deepening and expansion of the GSTP in order to enhance its effects. In that context, it would, however, be useful to examine possible ways of rationalizing the process of negotiations for a third round. (UNCTAD 2000)