MERCOSUR ACCEDES TO THE GSTP AGREEMENT

3 October 2006 - The Global System of Trade Preferences Among Developing Countries (GSTP) received a further boost today with the accession of the Southern Common Market (MERCOSUR), comprised of Argentina, Brazil, Paraguay and Uruguay. The decision of these countries to participate in the GSTP as a regional group represents a recognition of the GSTP vocation to promote South-South inter-regional integration.

Ambassador Alberto Dumont (Argentina), Ambassador Clodoaldo Hugueney (Brazil), Ambassador Rigoberto Gauto Vielman (Paraguay) and Ambassador Guillermo Valles Galmés (Uruguay) presented to Dr. Supachai Panitchpakdi, Secretary-General of UNCTAD, their respective government's instruments ratifying accession of MERCOSUR to the Agreement on the Global System of Trade Preferences Among Developing Countries (GSTP).

Ambassador Hugueney (Brazil), currently President Pro-Tempore of MERCOSUR, conveyed to Dr. Supachai that MERCOSUR considered the GSTP a useful instrument for promoting South-South cooperation on a broad front, from trade to other areas, such as trade facilitation and investments.

Participation in the GSTP is open to sub-regional, regional and interregional groupings of developing countries. The Agreement enters into force for MERCOSUR on 2 November 2006.

Hugueney emphasized that the Third Round of GSTP negotiations would enhance multilateral efforts to promote global trade and prosperity. MERCOSUR looked forward to the successful conclusion, not only of the GSTP negotiations, but also of the multilateral trade negotiations.

Dr. Supachai welcomed the accession of MERCOSUR to the GSTP and noted the progress of work in the GSTP negotiations in the areas of tariff modalities and rules of origin. He assured MERCOSUR that the secretariat would play its part in helping promote and strengthen the GSTP.