The Global System of Trade Preferences among Developing Countries (GSTP) aims at promoting trade among developing countries. There are 42 country members of GSTP, including 7 LDCs (Bangladesh, Benin, Guinea, Mozambique, Myanmar, Sudan, and Tanzania). The Third Round of Trade Negotiations (Sao Paulo Round) concluded in December 2010, but has not yet become effective.
GSTP recognizes the special needs of LDCs and calls for concrete preferential measures in their favour (Article 3). LDCs are not required to make reciprocal concessions. Participating States may grant special concessions to LDC members (Article 9). Special considerations shall be given to requests for tariff reductions and other trade promoting measures by LDCs (Article 17). Rules of origin for LDCs may also be more flexible.
Utilization by LDCs:
The currently small number of concessions limits the utilization of the GSTP by LDCs.
Available Smooth Transition Procedures: