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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.