Page 45 - Banking Finance October 2019

ARTICLE

Presently, WTO has 164 members including developed i) Procedural advantages for WTO dispute resolutions
countries, developing countries and least developed j) Special legal counselling and advice to deal WTO
countries. Out of total members, two thirds i.e. 117 disputes
members are Developing Countries.
k) Support to implement and upgrade technical standards
Definition of a 'Developing Country' at l) Certain export subsidies

WTO: Doha Ministerial Conference, known as Doha Declaration
There is no specific definition of a 'Developing Country' or declared that all special and differential treatment
'Developed Country' laid down in the WTO. WTO does not provisions are an integral part of the WTO agreements and
define a nation or state as 'Developing Country' or that these provisions should be reviewed with a view to
'Developed Country'. strengthening them and making them more effective and
operational. It also mandated the Committee on Trade &
In fact, a country or nation, at the time of joining Development (CTD) to identify which of those special and
membership of WTO, declares itself as a 'Developed Country' differential treatment provisions can be made mandatory.
or 'Developing Country' or 'Least Developed Country'. In
other words, WTO accepts the self-declaration status of a Bali Ministerial Conference in December 2013 established
member by announcing itself as a 'Developing' country a mechanism to review and analyze the implementation of
during the process of membership. special and differential treatment provisions with aim for
either improving the implementation of reviewed provisions
Benefits to 'Developing Country' at or improving the provisions themselves through re-
negotiations.
WTO:
WTO provides certain rights and benefits to 'Developing Other provisions favoring 'Developing
Country' status. There are certain provisions in WTO Country' status:
agreements contain provisions, called 'Special & Differential
Treatment' (S&D) provisions meant for 'Developing Country' a) 'Non-Reciprocal':
members only, which give them special privileges and There is a provision of 'Non-Reciprocal' preferential
advantages. Under these provisions, the developing country treatment for developing countries. It simply implies that
members are treated more favorably than other WTO when developed countries grant trade concessions to
members. developing countries, they should not expect the developing
countries to make matching offers in return.
Following are the benefits or special provisions
available to developing countries: b) Enabling Clause:
a) Longer time periods for implementing Agreements The concept of 'Enabling Clause' enables the developed
country members to give differential and more favorable
b) Longer timeframe for fulfilling commitments of WTO
agreements treatment to developing country members. It is also known
as “Decision on Differential and More Favorable Treatment,
c) More trading opportunities through greater market Reciprocity and Fuller Participation of Developing
access
Countries".
d) Reducing barriers or restrictions to trade
c) Generalized System of Preferences (GSP):
e) Providing supports in strengthening domestic trades and
technology Under Generalized System of Preferences (GSP), the
developed countries offer preferential treatment to
f) Provisions requiring all WTO members to safeguard the
developing countries with zero or low duties on imports or
trade interests of developing countries
trade concessions on products originating in developing
g) Softer tariff cuts countries. Though Preference giving countries unilaterally
h) Support to help build the capacity to carry out WTO determine which countries and which products are included
work in their schemes.

BANKING FINANCE | OCTOBER | 2019 | 45