Consider the following statements regarding the United Nations Conference on Trade and Development (UNCTAD):

1. UNCTAD is a permanent intergovernmental body established by the United Nations General Assembly in 1964.

2. The Global System of Trade Preferences (GSTP), negotiated within UNCTAD, aims to boost South-South trade through preferential tariff reductions.

Which of the statements given above is/are correct?

In News

• UNCTAD has emphasized the need for global cooperation and balanced policies to prevent economic fragmentation and ensure long-term growth amid rising trade uncertainties.

Key Points

• UNCTAD is a permanent intergovernmental body established by the United Nations General Assembly (UNGA) in 1964 to address trade and development issues. 
  • Headquartered in Geneva, Switzerland, it supports developing countries in navigating globalization through trade, investment, and technology.
  • Hence, Statement 1 is correct.
• The Global System of Trade Preferences (GSTP) was established in 1989 within UNCTAD’s framework to promote South-South trade by providing preferential tariff reductions among developing countries.
  • The GSTP agreement has been ratified by 44 countries to date.
  • Hence, Statement 2 is correct.

Additional Information

• UNCTAD reports directly to the UNGA and ECOSOC but has its own membership, leadership, and budget. 
• Key reports published by UNCTAD:
  • Trade and Development Report
  • World Investment Report
  • The Least Developed Countries Report
• UNCTAD played a crucial role in highlighting the need for a differentiated approach to the challenges faced by developing nations.