Special and Differntial Treatment (1)

8/8/2019 Special and Differntial Treatment (1)

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Special and Differential Treatment refers to thespecial rights and privileges that are accorded todeveloping countries, by virtue of the fact thatthey are less developed economies, to enhance

their participation and thus reduce on theirmarginalization, in the multilateral tradingsystem.

the product of the co-ordinated political effortsof developing countries to correct the perceived

inequalities of the post-war international tradesystem by introducing preferential treatment intheir favour across the spectrum of internationaleconomic relations (Gibbs 1998).


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No provisions in the original version of GATT

1947

In 1948 Article XVIII was introduced via

amendment This article allowed developing countries to

apply national protection measures to

support "economic development and

reconstruction of industry and agriculture.


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In 1954/55 Article XVIII was revised only developing countries were entitled to

make use of the provisions in the Article.

Concepts like Infant industry approach,

Domestic industry protection were allowedto developing countries.

In 1964 establishment of UNCTAD

Establish Part IV of the GATT in 1965

UNCTAD-II conference in New Delhi in 1968 Adoption of the Enabling Clause during the

GATT Tokyo Round 1979


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a)preferential market access for developing

countries on a non-reciprocal and non

discriminatory basis

b) differential and more favourable treatmentof developing countries with regard to GATT

provisions on non-tariff barriers,

c) the conclusion of preferential agreements

between developing countriesd) special treatment of the so-called Least

Developed Countries.


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Problem of single Undertaking

The provisions of GATT 1947 regarding

market access for developing countries and

the Enabling Clause which had established along-term legal basis for the GSP were only

included in GATT 1994

The WTO Secretariat classifies the 155

provisions regarding special and differentialtreatment as either mandatory or non-

mandatory


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The Secretariat categorises the current 155

SDT provisions as follows:a) provisions aimed at increasing trade

opportunities,14

b) provisions to safeguard the interests of

developing countries, 49 provisionsc) flexibility of commitments,33

d) transitional periods,

e) technical assistance,14

f) provisions relating to Least Developed

Countries


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The Enabling Clause,

GATT 1994,

The Agreement on Agriculture,

The Agreement on Textiles and Clothing

The General Agreement on Trade in Services(GATS)


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14 provisions in this category are voluntary in

character and accordingly are rather vaguely

formulated.

Three of the market access provisions,

Classified as mandatory by the Secretariat:

Article 2, paragraph 18 of the Textile

Agreement and GATS Article IV, paragraphs 1and 2.


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Arti l I f ATS r vi s t r

r visi s.

r r r s:

The i reasi arti i ati f evel i

tr embers i rl trade shall be

facilitated thr h negotiated s ecific

commitments (...).


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The Enabling Clause which created a long-

term legal basis for the GSP was integrated

into GATT 1994 and thus into the WTO.

Special and Differntial Treatment (1)

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