Section outline

  • Since the 1970s, non-reciprocal trade preferences, such as the Generalized System of Preferences (GSP), have supported developing countries’ export growth. Yet, the rapidly changing global trade landscape poses new challenges. UNCTAD's Trade Preferences Outlook 2024 found the diminishing impact of preferential tariffs as MFN tariffs fall, free trade agreements proliferate, and non-tariff measures become more prevalent. Moreover, the rise of global value chains and the increasing technological intensity of production have shifted the sources of comparative advantages, necessitating a rethinking of the trade preferences. This course examines the current state of trade preferences for developing economies, particularly LDCs. It will discuss possible ways forward towards enhancing their development impact, including broadening market access cooperation to areas beyond tariffs, such as non-tariff measures, services trade, foreign direct investment and technology. The course is relevant to SDG 17 on strengthening the means of implementation and revitalizing the global partnership for sustainable development.

    At the end of this course, delegates will have gained knowledge of:

    • Historical evolution of non-reciprocal trade preferences.
    • The empirical evidence on the role of trade preferences in promoting export diversification in developing countries.
    • Current trends in preferential trade under the evolving trade landscape.
    • Possible ways for enhancing the design and implementation of trade preferences and their development impact, including through new market access cooperation beyond tariff concessions.