Trade AgreementsView All
Global System of Trade Preferences among Developing Countries
Area of Cooperation
Global Dispute Settlement
January 1, 1988
In Force Date
January 1, 1989
The Global System of Trade Preferences arose out of the United Nations Group of 77. The Group first appeared interested in 1976 to develop a global system of trade for developing countries. Over years of negotiations, the agreement was signed by the participating members of the Group of 77. The members are currently looking to expand their economic ties to other developing countries in Asia, Latin America and Africa.
i. Global (developing countries)
|Rules of Origin|
i. Minimum value of content not less than 50% FOB value of the products produced or obtained, for LDC not less than 40%
ii. Accumulation where aggregate contents originating in the members is not less than 60% FOB value of the products produced or obtained
i. Safeguards: Article 13 stipulates rules for use of safeguards. Article 14 refers to balance of payments measures.
i. “Examining aspects of free trade pacts” http://www.business-standard.com/economy/storypage.php?leftnm=3&subLeft=3&chklogin=N&autono=299843&tab=r
ii. “Developing Countries and Unilateral Trade Preferences in the New International Trading System” http://www.wto.org/english/tratop_e/devel_e/sem01_e/ongugl_e.doc.