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  • DEVELOPING COUNTRIES CLOSE DEAL TO BOOST SOUTH-SOUTH TRADE

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    Developing Countries Close Deal to Boost South-South Trade

     

     
     
    International Trade Forum - Issue 4/2009

    A group of developing countries has tentatively agreed on a deal to cut tariffs and other barriers to each other's exports in an attempt to boost South-South trade. Negotiators from 22 nations,  including Brazil, India, Indonesia, Democratic People's Republic of Korea, Republic of Korea and Zimbabwe, reached an outline agreement on a new round of concessions under the Global System of Trade Preferences Among Developing Countries (GSTP), following meetings of the UNCTAD. The draft agreement was submitted to ministers from participating countries for discussion and approval at a meeting scheduled around the WTO's Ministerial Conference.

    Under the terms of the tentative accord, participating states would lower tariffs on exports of some 70 per cent of each other's agricultural and manufactured goods. These tariff cuts would not be extended to other countries. Once the deal is adopted, each country will draw up a list of products eligible for tariff cuts, and then submit them to other participants for negotiation and verification.