Cause and effect of 'differentiation' between developing countries in the WTO

Abstract

Developing countries, the largest group in the WTO, are bestowed with 'special and differential treatment' (S&D) across WTO covered agreements. However, the state of implementation of S&D provisions has been a deep source of concern. One of the major obstacles in realisation of the S&D treatment is the identification and definition of countries qualified for such treatment - the 'developing countries'. The developing countries are the most heterogeneous group in the WTO, and the 'developing country status' is determined based on self-selection, with no set standard for identification and 'graduation'. This has hindered the effective utilisation of S&D provisions, diluted the legitimacy of the S&D concept and questioned the rational of granting such 'status' with the WTO framework. Consequently, the question as to which country qualify as 'developing country' or whether there could be differentiation within 'developing county' group, is paramount and have direct correlation with S&D's implementation in the existing WTO regime and the future regime negotiated under the Doha 'development' round. This paper attempts to highlight some of these concerns. The paper argues that it is in the developing countries' interest to lay down definite and transparent criteria for determining such status. In addition to adding legitimacy to the function of S&D concept, this would discourage discrimination, and ensure prompt and effective realisation of the S&D goals. Copyright © 2011 Inderscience Enterprises Ltd.