ABSTRACT
The General Agreement on Tariffs and Trade (GATT) and its successor the World Trade Organization (WTO) accord developing countries special rights and privileges that affect the ways they participate in the multilateral trading system. These special rights and privileges are collectively referred to as ‘special and differential’ (hereafter, S&D) treatment for developing countries. Since the early years of the GATT both developed and developing countries have long accepted the concept of S&D treatment for the latter,1 but its orientation and emphasis have evolved over time. See, among others, Michalopoulos (2000), Whalley (1999) and WTO (1999a) for a detailed discussion of the origin and evolution of S&D treatment under the GATT-WTO trading system. Kessie (2000) also addresses the question of enforceability of the legal provisions relating to S&D treatment. Prior to the Uruguay Round of Multilateral Trade Negotiations (1986-94) it was primarily meant to accord developing countries special rights to nurture infant industries, preferential access to developed-country markets and non-reciprocity in trade negotiations. The principle of non-reciprocity allowed developing countries to opt out of MFN-based liberalization commitments. At the successful conclusion of the Uruguay Round, however, member governments adopted the ‘single undertaking’ approach that required both developed and developing countries to adhere to nearly the same set of agreements on trade rules. The concept of S&D treatment was then reoriented to address adjustment difficulties stemming from implementation of the WTO Agreements in many developing countries. Emphasis was also shifted to meeting the special needs of the least-developed countries (LDCs), the weakest partners in international economic relations. One of the main factors underlying this change was growing disenchantment with the development strategy based on import substitution.
