SDG 17: Partnerships for the Goals | SDG 8: Decent Work & Economic Growth
Institutions: Ministry of Commerce & Industry
In a major outcome under UNCTAD, developing nations have agreed to advance the long-pending Global System of Trade Preferences among Developing Countries (GSTP), marking a renewed effort to strengthen South-South trade cooperation. The SΓ£o Paulo Round Protocol was on hold for years but is now one ratification away from entering into force. Once active, it will cut tariffs (import taxes) and relax non-tariff rules (like licenses or quality checks) among members, making trade cheaper and smoother.
Together, GSTP participants represent an USD 18 trillion market and account for 20.5 % of global goods imports: around USD 5 trillion in annual demand.
The upcoming GSTP Ministerial Meeting (22 October 2025, during UNCTAD-16 in Geneva) will focus on operationalising the protocol, negotiating sectoral accords, and deepening trade-led development frameworks.
India signed the GSTP Agreement in 1988 and ratified it in 1989, making it one of the original members. It also took part in the SΓ£o Paulo Round of negotiations (2004β2010), where countries agreed to deepen tariff cuts and expand product coverage. India deposited its instrument of ratification for that round in 2011, showing continued support for the framework.
GSTP revival could enable expanded preferential access to developing markets, complement existing FTAs, and enhance resilience against unilateral tariff shocks-aligning with Indiaβs Foreign Trade Policy 2023 and its push for South-South cooperation.
What are tariff and non-tariff concessions?
Tariff concessions are reductions or eliminations of import duties that make traded goods cheaper between participating countries. Non-tariff concessions involve easing regulatory barriers, such as quotas, licensing, or complex standards, that often restrict market access even when tariffs are low. Together, these measures expand trade opportunities, improve predictability, and foster competitiveness among member economies.
Relevant Question for Policy Stakeholders:
How can India leverage GSTP preferences to diversify exports while balancing sensitivities in agriculture, manufacturing, and emerging technology sectors?
Follow the full news here: https://unctad.org/news/developing-countries-chart-new-trade-strategies