The issue of SDT has become very topical again, following a period during which it was viewed as an outdated concept for the multilateral trading system. We therefore devote attention as well to a number of recent contributions that discuss (i) whether there is a continued need for SDT, and (ii) how this might be designed from both a development (recipient) objective and from the perspective of the trading system more generally. A major theme of the survey is that most of the issues that are debated today were already being discussed in the 1960s. We conclude that those who questioned the value of unilateral preferences have proven to be prescient.

Nonreciprocal trade preferences and provisions in the GATT/WTO that allow developing countries greater leeway to retain or use protectionist policies are two of the central planks of so-called special and differential treatment (SDT) for developing countries in the multilateral trading system. The authors survey the literature on the rationales, institutional features, and economic effectiveness of SDT. A large literature has emerged on SDT in the past 50 years, by both proponents and opponents. They summarize a number of key contributions on the subject, with a special emphasis on the evaluation of the impact of SDT, especially preferential market access. The issue of SDT has become very topical again, following a period during which it was viewed as an outdated concept for the multilateral trading system. The authors therefore devote attention as well to a number of recent contributions that discuss (1) whether there is a continued need for SDT, and (2) how this might be designed from both a development (recipient) objective and from the perspective of the trading system more generally. A major theme of the survey is that most of the issues that are debated today were already being discussed in the 1960s. The authors conclude that those who questioned the value of unilateral preferences have proven to be prescient.

This book critically analyses the World Trade Organization’s approach to "special and differential treatment" (SDT) to argue that it is founded on seeking exemptions from WTO obligations, instead of creating an enabling environment for developing countries to integrate fully into the multilateral trading system. Through six key sections: United States Proposal on Special and Differential Treatment Responses to United States Proposal The Evolution of Differential Treatment Failure of the Current Approach to Differential Treatment Complications Created by China’s Emergence in the Global Economy An Alternative Approach to Differential Treatment this book explores how, by adopting a new evidence-based, case-by-case approach to SDT, the development of the poorest countries can best be advanced, while at the same time ensuring that advanced developing countries carry their weight in the organization. It will be of interest to scholars and students of international trade law and political science, as well as trade practitioners such as lawyers, diplomats, and analysts.

The authors discuss optio ...

This book critically analyses the World Trade Organization’s approach to "special and differential treatment" (SDT) to argue that it is founded on seeking exemptions from WTO obligations, instead of creating an enabling environment for developing countries to integrate fully into the multilateral trading system. Through six key sections: United States Proposal on Special and Differential Treatment Responses to United States Proposal The Evolution of Differential Treatment Failure of the Current Approach to Differential Treatment Complications Created by China’s Emergence in the Global Economy An Alternative Approach to Differential Treatment this book explores how, by adopting a new evidence-based, case-by-case approach to SDT, the development of the poorest countries can best be advanced, while at the same time ensuring that advanced developing countries carry their weight in the organization. It will be of interest to scholars and students of international trade law and political science, as well as trade practitioners such as lawyers, diplomats, and analysts.

Rethinking developing country status at the World Trade Organization (WTO) is essential for the modernization and survival of the institution. The Trump administration has recognized this challenge and is seeking changes to the flexibilities provided to developing countries. Referred to as “special and differential treatment” (SDT), there are 183 provisions in the WTO agreements that give developing countries special rights. These include longer time periods to implement obligations, preferential tariff schemes, and technical support from developed countries. SDT was envisioned as a means to help the poorest WTO Members meet their obligations to the fullest extent possible. But, today, when rapidly growing markets with significant global reach lay claim to these special rights, does it serve this purpose? The Trump administration thinks it does not. A recent reform proposal from the United States claims that SDT reflects an outdated dichotomy between developed and developing countries, and that the ability of countries to “self-declare” their developing country status amplifies this problem. Without a clear definition of what special rights SDT provides, the United States' proposal argues, it is difficult to ascertain objectively who should receive those benefits, and for how long. A number of other developed countries have come out in support of reform, and their discussions highlight the need to establish a path forward. For their part, most developing countries continue to defend the current approach to SDT.This paper argues that the basic flaw in the WTO's current approach to SDT is that it is founded on seeking exemptions from WTO obligations instead of the means to enable developing countries to meet these obligations and thus integrate them fully into the multilateral trading system. The United States is correct in pointing out the inherent unfairness in the application of SDT, which does not differentiate between levels of development among developing countries. As a result, the poorest countries are made worse off, while those that are economically better off receive a “free ride” from the rest of the multilateral trading system. By adopting a new evidence-based, case-by-case approach to SDT, the concerns of the poorest countries can be better addressed, while at the same time ensuring that advanced developing countries carry their weight in the organization.

Weaknesses in the institutional capacity of many developing countries provide a rationale for continuing special and differential treatment under the World Trade Organization (WTO), but the benefits should be targeted only to low-income developing countries and those that need help becoming integrated with the international trading system. An effective system of graduation should be put in place for higher-income developing countries.