SPECIAL AND DIFFRENTIATED TREATMENT

Subject : Economy

Context : Negotiations on curbing “harmful” fisheries subsidies are picking up pace at the World Trade Organization with a revised text of the draft agreement now in circulation. But there is still no consensus on the special dispensation for developing countries being pushed for by India.

Concept :

• More discussions on the special and differential treatment (S&DT) for developing countries and LDCs are scheduled this week in addition to some bilateral meetings to help members narrow their gaps on the matter.

Special and differential treatment :

• The WTO agreements contain special provisions which give developing countries special rights and allow other members to treat them more favourably. These are “special and differential treatment provisions” . It includes ,
• Longer time periods for implementing agreements and commitments
• Measures to increase trading opportunities for these countries
• Provisions requiring all WTO members to safeguard the trade interests of developing countries
• Support to help developing countries build the infrastructure to undertake WTO work, handle disputes, and implement technical standard
• Provisions related to least-developed country (LDC) members.

Designation :

• Currently, any WTO member can designate itself as a developing country and avail these benefits.
• The US had submitted its suggestions to the WTO which states that self-declaration puts the WTO on a path to failed negotiations and it is also a path to institutional irrelevance.
• In the Doha Declaration, ministers agreed that all special and differential treatment provisions should be reviewed, in order to strengthen them and make them more precise, effective and operational.