Countries taking part in the Global System of Trade Preferences among Developing Countries (GSTP) are okay with a line-by-line 20 to 40% reduction on tariffs, with the coverage to be minimum 70% of their dutiable tariff lines.

Officials and diplomats saw it as a breakthrough in the GSTP talks, which have been progressing gradually since the launching of the third round of GSTP at Sao Paulo in July 2004.

An announcement in this regard was made at the GSTP Ministerial meeting occurring on the sidelines of UNCTAD XII. The Ministerial meeting agreed that the current third round of the GSTP negotiations will conclude by 2008-end.

While the broad terms of modalities have been decided on, the next round of negotiations in Geneva will have to decide on the figure within the range of 20-40% of tariff cuts, and the coverage of products.

“I am confident that the negotiations can proceed to conclusion by the end of December,” said Swashpawan Singh, India's Ambassador in Geneva. “The realistic approach now being taken should lead us to quick progress.”

Agreement on the broad modalities was reached on at a senior officials' meet of the GSTP Negotiating Committee held on April 21 in Accra on the sidelines of the UNCTAD XII conference.

Argentina's Ambassador in Geneva, Alberto Dumont, who chairs the Negotiating Committee and who has led the negotiations, reported that the participants agreed to accomplish negotiations on the basis of across-the-board, line-by-line, linear cut of 20 to 40% on dutiable tariff lines, to be combined with request-and-offer and/or sectoral negotiations. They also agreed to assume commitments on at least 70% of their dutiable tariff lines.

Dumont's report also covers the work programme up to November 2008. It also asks to conclude the Third Round by 2008-end.

At the end of the Ministerial meeting, the President of the Committee of Participants said the meeting agreed to conclude the third round of the GSTP by the end of 2008, and the Geneva representatives are being asked to implement this. “The work will not be easy but with their skill, they can overcome the problems,” he said.

The GSTP Ministerial meeting also adopted a Joint Communique.

The special treatment for LDCs has also been an issue. The modalities agreed to in Accra did not deal with this issue, but the GSTP Ministerial meeting of April 22 vowed that the officials will closely consult with LDCs on this topic. (Suns)

April 30, 2008