1. At the Ministerial Session of the GSTP Negotiating Committee, held on December 2 on the 
sideline of the Seventh Ministerial Conference of the WTO in Geneva, Switzerland, the Draft 
Ministerial Decision on Modalities for the Third Round of GSTP negotiations were adopted.

ㅇ Minister for Trade Jong-Hoon, Kim participated in the Ministerial Conference as the 
   representative of the Republic of Korea, which has been a GSTP member country from 
   the first round.

* GSTP: Abbreviation for “Global System of Trade Preferences among Developing Countries”, 
   set up in 1988 as a preferential trade concession under the UNCTAD (United Nations 
   Conference on Trade and Development) for the purpose of accelerating trade and 
   increasing the productivity and employment between developing countries

* First round of negotiations: 1986-1988
  Second round of negotiations: 1994-1998

2. The outstanding issues of the Modalities agreed upon at the conference are as follows:

ㅇ Product Coverage: At least 70% of dutiable tariff lines
ㅇ Margin of Preference: At least 20% linear cut on the MFN tariff applied on the date of 
   importation
ㅇ Draft Schedules of Tariff Concessions: Schedules to be submitted by the end of May 2010, 
   at the latest, and verified and finalized by the end of September 2010
ㅇ Implementation: Upon the domestic ratification of the Final Agreement and the deposit of 
   the respective instruments by a number of Participants (to be defined)
ㅇ Rules of Origin: Conclusion of negotiations to be no later than the end of September 2010

3. The third round of the GSTP negotiations has been ongoing for the last five years, ever 
since they first began on the occasion of the UNCTAD General Assembly in San Paolo, Brazil 
in June 2004. The adoption of the Modalities is viewed as providing an important opportunity 
for the conclusion of the negotiations. In accordance with the adoption of the Modalities, it is 
expected that each country’s schedule will be submitted and verified next year, the rules of 
origin negotiated and, should the negotiations be concluded, the schedules brought into effect 
after domestic ratification.

4. Korea has participated in all three rounds of the GSTP negotiations, and it is expected that 
the conclusion of the third round of negotiations will contribute in expanding Korea’s exports to 
developing countries and advancing cooperation with major developing countries.

              Spokesperson and Deputy Minister for Public Relations of MOFAT

*unofficial translation