I (Meaning and importance of Exports) Unit Structure

Objectives of GSTP: 
The main objectives of Global System of Trade Preferences are as 
follows: 
(a) To promote and sustain mutual trade. For example products 
originating from India are eligible for preferential tariff treatment 
upon import in participant countries. 
(b) To develop economic co-operation among developing countries 
(member of group 77) through exchange of trade concessions. 
The GSTP establishes a frame work for the exchange of 
trade concessions among the members of group 77. The coverage 
of GSTP extends in the area of tariff, Para
–tariff, non-tariff 
measures, direct trade measures and sectroal arrangements. 
1. Tariff concessions or measures, tariffs means custom duties 
stated in the national tariff schedules of the participant 
member. 
2. Para-tariff concessions, para-tariff means border charges and 
fees other than tariff which are solely imposed on imports. 
3. Non-tariff measures, non-tariffs mean any measure or 
regulation such as quotas that restrict mostly imports. 
4. Direct trade measures, which mean measures conductive to 
promote mutual trade of members such as long and medium 
term contracts containing import and supply commitments in 

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respect of specific products, state trading operations, 
government and public procurement etc. 
5. Sectoral agreements, which means agreements amongst 
participants regarding the removal or reduction of tariff, non-
tariff, and para-tariff barriers as well as other trade promotion 
measures for specified products. 
4.11 PRINCIPLES OR GUIDELINES OF GSTP 
The GSTP framework is based on the following : 
Principles or guidelines 
1. The GSTP shall be reserved for the exclusive participation of 
developing countries that are members of groups 77. 
2. The benefits of GSTP shall accrue to the developing countries 
members of the group 77, who are participants in the GSTP 
agreement. 
3. The GSTP shall be based and applied on the principal of 
mutuality of advantages in such a way to benefit equitably all