Jul 27, 1985
TEN PERCENT TARIFF REDUCTION SUGGESTED IN GSTP.
NEW DELHI, JULY 25 (IPS) – Developing countries are being asked to reduce tariffs across-the-board by a preference margin of up to 10 percent to boost trade among themselves.-The proposal is contained in a draft declaration on the proposed global System of Trade Preferences (GSTP) among developing countries finalised here Wednesday night by senior officials from 64 developing countries.- Trade Ministers and other representatives of developing countries who opened a meeting here Thursday to continue talks on implementing the GSTP, will examine this draft and a related declaration on the world trading environment.- Agreement on the indicative 10 percent figure for tariff concessions among countries willing to participate in the GSTP is considered a major breakthrough.- Achieved after patient consultations over the last three days, it fills an important gap that was left in the draft until almost the last minute.- While further work will have to be done to meet the concerns of some countries regarding rules of origin and rules of safeguards, the draft suggests that the first round of GSTP negotiations among interested countries should begin by May l, 1986, and be completed by May l, 1987.- It proposes that a framework agreement incorporating the ground rules should be finalised by October 31 this year.- It also indicates that the "techniques and modalities" for the first round of talks will be elaborated by December 31 this year, and a final "negotiating plan" drawn up by February 28, 1986.- According to the draft document, the preparatory phase for setting up the GSTP should be concluded with approval of the framework agreement by interested governments who would also approve the techniques and modalities and the negotiating plan for the first round.- The framework agreement should become effective with its acceptance by states "which shall have exchanged concessions in the first round".-