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More Favorable and Differential Treatment of Developing Countries : Toward a New Approach in the World Trade Organization

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dc.contributor.authorMichalopoulos, Constantine
dc.contributor.authorHoekman, Bernard
dc.contributor.authorWinters, L. Alan
dc.date.accessioned2014-05-01T21:06:37Z
dc.date.available2014-05-01T21:06:37Z
dc.date.issued2003-08
dc.description.abstractThe authors discuss options that could be considered in the World Trade Organization (WTO) to provide more favorable treatment-so-called special and differential treatment (SDT)-to small and low-income countries. They argue that there is a need both for differentiation across WTO members and for steps that would benefit all developing countries. The authors suggest the following to make the Doha Round more supportive of development: 1) A binding commitment by industrial countries to abolish export subsidies and nontariff barriers (tariff quotas) and to reduce most-favored-nation tariffs on labor-intensive products of export interest to developing countries to no more than 5 percent in 2010, and to no more than 10 percent for agricultural products. All tariffs on manufactures should go to zero by 2015, the target date for the achievement of the Millennium Development Goals. Liberalization should also be undertaken by developing countries on the basis of a formula approach. 2) A binding commitment by industrial countries on services to expand temporary access for service providers by a specific amount-for example, equal to an additional 1 percent of the workforce-and not to restrict cross-border trade (for example, by telecom channels). 3) Unilateral action by all industrial countries to extend preferential market access for less developed countries, and to simplify eligibility criteria, especially rules of origin. 4) Affirmation by the WTO that core disciplines relating to the use of trade policy apply equally to all WTO members. 5) Acceptance of the principle that for small and low-income countries "one size does not fit all" when it comes to domestic regulation and to WTO agreements requiring substantial investment of resources. 6) Recognition that some WTO agreements need to be adapted to make them more supportive of development, and a consequent willingness by industrial countries to modify them. 7) Expansion of development assistance to bolster trade capacity in poor countries and strengthening of the links between trade-related technical assistance and the mechanisms through which aid priorities are determined in developing countries. In practice, calls for specific types of SDT often appear to be motivated by a perception that a certain WTO rule is "anti-development" and that therefore developing countries should be exempted from the rule in question. The authors suggest that the appropriate solution to such problems is to change the rules rather than seek an opt-out. What should be up front changes in rules and what should be part of the negotiating agenda is a major issue which needs to be addressed at the Cancun Ministerial meeting. The suggestion that SDT should focus primarily on WTO rules and be limited to those countries that need it most-very small and poor economies-implies that criteria should be adopted to differentiate between countries. Leaving this to self-declaration-the current approach-is not feasible, while reliance on case-by-case, agreement-specific negotiation can generate excessive costs, discretion, and associated uncertainty. While the authors' preference is for a simple rule-of-thumb approach to determine eligibility, this is an issue that requires much more thought and discussion. They suggest that WTO members establish a high-level group to consider criteria that could be used for differentiation purposes and to determine the set of agreements to which differentiation will apply.en
dc.identifierhttp://documents.worldbank.org/curated/en/2003/08/2487583/more-favorable-differential-treatment-developing-countries-toward-new-approach-world-trade-organization
dc.identifier.doi10.1596/1813-9450-3107
dc.identifier.urihttps://hdl.handle.net/10986/18139
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 3107
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO SERVICE MARKETS
dc.subjectAGRICULTURAL MARKET ACCESS
dc.subjectAGRICULTURAL PRODUCTS
dc.subjectAGRICULTURAL SUPPORT
dc.subjectAGRICULTURAL SUPPORT POLICIES
dc.subjectAGRICULTURAL TRADE
dc.subjectAGRICULTURE
dc.subjectANTIDUMPING
dc.subjectAPPAREL
dc.subjectAVERAGE LEVEL
dc.subjectAVERAGE TARIFF
dc.subjectBALANCE OF PAYMENTS
dc.subjectBENCHMARKS
dc.subjectBENEFICIAL IMPACT
dc.subjectBENEFICIAL TRADE
dc.subjectBORDER TRADE
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPETITION LAW
dc.subjectCOMPETITION POLICY
dc.subjectCOMPLEMENTARY POLICIES
dc.subjectCONCESSIONS
dc.subjectCONSUMERS
dc.subjectCONSUMPTION GOODS
dc.subjectCOUNTRY LEVEL
dc.subjectCOUNTRY MARKETS
dc.subjectCROSS-BORDER TRADE
dc.subjectCUSTOMS VALUATION
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDEVELOPMENT AID
dc.subjectDEVELOPMENT ASSISTANCE
dc.subjectDEVELOPMENT GOALS
dc.subjectDOMESTIC INDUSTRY
dc.subjectDONOR COMMUNITY
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC DEVELOPMENT
dc.subjectEXCESSIVE COSTS
dc.subjectEXPORT GROWTH
dc.subjectEXPORT MARKETS
dc.subjectEXPORT SUBSIDIES
dc.subjectEXPORT TAXES
dc.subjectEXPORTS
dc.subjectFINANCIAL RESOURCES
dc.subjectFOREIGN FIRMS
dc.subjectFREE ACCESS
dc.subjectFREE TRADE
dc.subjectFREE TRADE AGREEMENTS
dc.subjectGENERALIZED SYSTEM OF PREFERENCES
dc.subjectGLOBAL TRADE
dc.subjectGROWTH POTENTIAL
dc.subjectIMPORT QUOTAS
dc.subjectIMPORTING COUNTRIES
dc.subjectINCOME
dc.subjectINCOME COUNTRIES
dc.subjectINCOME LEVELS
dc.subjectINDUSTRIAL COUNTRIES
dc.subjectINSTITUTIONAL DEVELOPMENT
dc.subjectINTELLECTUAL PROPERTY
dc.subjectINTENSIVE PRODUCTS
dc.subjectINTERNATIONAL TRADE
dc.subjectINVESTMENT INCENTIVES
dc.subjectLABOR MARKETS
dc.subjectLABOR- INTENSIVE
dc.subjectLABOR-INTENSIVE
dc.subjectLABOUR INTENSIVE
dc.subjectLDCS
dc.subjectLESS DEVELOPED COUNTRIES
dc.subjectLIBERALIZATION OF TRADE
dc.subjectLIBERALIZATION OF TRADE IN GOODS
dc.subjectMARKET DISTORTIONS
dc.subjectMARKET FAILURES
dc.subjectMARKET IMPERFECTIONS
dc.subjectMERCHANDISE TRADE LIBERALIZATION
dc.subjectMOST-FAVORED-NATION
dc.subjectMULTILATERAL DISCIPLINES
dc.subjectMULTILATERAL TRADE
dc.subjectNATIONAL AVERAGE
dc.subjectNATIONAL LEVEL
dc.subjectNONDISCRIMINATORY TRADE
dc.subjectNONTARIFF BARRIERS
dc.subjectOPEN MARKETS
dc.subjectPER CAPITA INCOME
dc.subjectPOLICY REFORMS
dc.subjectPOLICY RESEARCH
dc.subjectPOLICY RULES
dc.subjectPOOR COUNTRIES
dc.subjectPOOR HOUSEHOLDS
dc.subjectPOOR PEOPLE
dc.subjectPOSITIVE EXTERNALITIES
dc.subjectPOVERTY ALLEVIATION
dc.subjectPOVERTY REDUCTION
dc.subjectPREFERENTIAL ACCESS
dc.subjectPREFERENTIAL ACCESS TO MARKETS
dc.subjectPREFERENTIAL MARKET ACCESS
dc.subjectPREFERENTIAL TARIFF
dc.subjectPREFERENTIAL TRADE
dc.subjectPREFERENTIAL TREATMENT
dc.subjectPRIORITY AREAS
dc.subjectPRODUCERS
dc.subjectPROTECTION OF INTELLECTUAL PROPERTY RIGHTS
dc.subjectQUOTA RENTS
dc.subjectREAL INCOME
dc.subjectRECIPROCAL CONCESSIONS
dc.subjectRECIPROCITY
dc.subjectREDUCING POVERTY
dc.subjectREDUCTION STRATEGIES
dc.subjectREGULATORY POLICIES
dc.subjectREGULATORY REQUIREMENTS
dc.subjectRESOURCE ALLOCATION
dc.subjectRESOURCE CONSTRAINTS
dc.subjectRULES OF ORIGIN
dc.subjectSAFETY STANDARDS
dc.subjectSERVICE PROVIDERS
dc.subjectSPECIALIZATION
dc.subjectSUSTAINABLE DEVELOPMENT
dc.subjectTARIFF BINDINGS
dc.subjectTARIFF CUTS
dc.subjectTARIFF RATE
dc.subjectTARIFF REDUCTION
dc.subjectTARIFF REDUCTIONS
dc.subjectTARIFF STRUCTURES
dc.subjectTECHNICAL ASSISTANCE
dc.subjectTELECOMMUNICATIONS
dc.subjectTRADE BARRIERS
dc.subjectTRADE DIVERSION
dc.subjectTRADE FACILITATION
dc.subjectTRADE LIBERALIZATION COMMITMENTS
dc.subjectTRADE NEGOTIATIONS
dc.subjectTRADE POLICIES
dc.subjectTRADE POLICY
dc.subjectTRADE POLICY INSTRUMENTS
dc.subjectTRADE POLICY REFORM
dc.subjectTRADE PREFERENCES
dc.subjectTRADE PROTECTION
dc.subjectTRADE REFORMS
dc.subjectTRADING PARTNERS
dc.subjectTRANSACTIONS COSTS
dc.subjectUNILATERAL TRADE
dc.subjectUNILATERAL TRADE LIBERALIZATION
dc.subjectURUGUAY ROUND
dc.subjectVALUE OF IMPORTS
dc.subjectVALUE OF RECIPROCITY
dc.subjectWELFARE GAINS
dc.subjectWORLD MARKETS
dc.subjectWORLD TRADE
dc.subjectWORLD TRADE ORGANIZATION
dc.subjectWORLD TRADING SYSTEM
dc.subjectWTO
dc.subjectWTO AGREEMENTS
dc.subjectWTO MEMBERS
dc.subjectWTO MEMBERSHIP
dc.subjectWTO RULES WORLD TRADE ORGANIZATION
dc.subjectEXPORT SUBSIDIES
dc.subjectTARIFF STRUCTURES
dc.subjectNONTARIFF TRADE BARRIERS
dc.subjectMOST FAVOURED NATION CLAUSE
dc.subjectAGRICULTURAL PRODUCTS
dc.subjectMANUFACTURES
dc.subjectTRADE LIBERALIZATION
dc.subjectSERVICE PROVIDERS
dc.subjectPREFERENTIAL TRADE AGREEMENTS
dc.subjectMARKET ACCESS
dc.subjectDOMESTIC RESOURCES
dc.subjectINDUSTRIAL COUNTRY PROTECTIONISM
dc.subjectDEVELOPMENT ASSISTANCE
dc.subjectCAPACITY BUILDING
dc.subjectTECHNICAL ASSISTANCE
dc.subjectRULES & REGULATIONS
dc.subjectNEGOTIATION PROCEDURES
dc.subjectTRADE NEGOTIATIONS
dc.subjectDUTY-FREE IMPORTATION
dc.subjectQUOTA FORMULAS
dc.subjectGENERAL AGREEMENT ON TARIFFS & TRADE
dc.subjectWTO RULES
dc.subjectWORLD TRADE ORGANIZATION
dc.titleMore Favorable and Differential Treatment of Developing Countries : Toward a New Approach in the World Trade Organizationen
dspace.entity.typePublication
okr.crossref.titleMore Favorable and Differential Treatment of Developing Countries: Toward a New Approach in the World Trade Organization
okr.date.doiregistration2025-04-10T09:56:40.952290Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2003/08/2487583/more-favorable-differential-treatment-developing-countries-toward-new-approach-world-trade-organization
okr.globalpracticePoverty
okr.globalpracticeGovernance
okr.globalpracticeTrade and Competitiveness
okr.guid717011468739788729
okr.identifier.doi10.1596/1813-9450-3107
okr.identifier.externaldocumentum000094946_03082104020550
okr.identifier.internaldocumentum2487583
okr.identifier.reportWPS3107
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2003/08/30/000094946_03082104020550/Rendered/PDF/multi0page.pdfen
okr.sectorIndustry and trade :: General industry and trade sector
okr.topicPublic Sector Development::Decentralization
okr.topicInternational Economics and Trade::World Trade Organization
okr.topicInternational Economics and Trade::Free Trade
okr.topicPoverty Reduction::Poverty Assessment
okr.topicPayment Systems and Infrastructure
okr.topicEconomic Theory and Research
okr.topicInternational Economics and Trade::Rules of Origin
okr.topicEnvironmental Economics and Policies
okr.unitTrade, Development Research Group
okr.volume1
relation.isAuthorOfPublication49a06ad1-63d4-5c3a-8b66-c6c3009e9cdf
relation.isAuthorOfPublication.latestForDiscovery49a06ad1-63d4-5c3a-8b66-c6c3009e9cdf
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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