ABSTRACT
An important issue in international trade policy ever since the GATT came into being has been whether developing countries should be granted different and more favourable treatment on account of their special position. The GATT is based on the principle of nondiscrimination as stated in Article I, the famous Most-favoured-nation Clause. This means that contracting parties are required to treat equally products coming from other contracting parties. Thus, in the absence of any other provisions, it would preclude any country from granting more favourable treatment to poorer countries on account of them being at a lower stage of development. Another requirement is that countries should take an active part in multilateral trade negotiations. That is to say, countries should be prepared to offer concesssions to trading partners and not just receive any concessions which other countries make and which are automatically extended to all contracting parties in conformity with the nondiscrimination principle. Such reciprocity is required in order to prevent any free-riding.
