A historic agreement from 1989, the Global System of Trade Preferences (GSTP) concluded between Developing Countries, might be effective in addressing today’s climate challenges in the South, according to the UN Conference on Trade and Development (UNCTAD). The agreement was reached between 42 countries from the G77 and aims to promote trade among nations in the Global South, primarily through preferential tariff reductions. It represents a market across Africa, Asia and Latin America with a combined value of $16 trillion. UNCTAD has suggested that the members of the GSTP “step up ambitions and key areas of South-South cooperation to advance sustainable trade and development.” Its Secretary-General Rebeca Grynspan called on countries to think creatively and take decisive actions to put the agreement into productive use to address pressing global challenges. “Under the current context of ‘polycrisis’, the GSTP can provide a valuable platform for advancing trade cooperation to achieve sustainable energy transition, decarbonization and greater food security,” she said.
