By Constantine Michalopoulos (auth.)
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Extra info for Developing Countries in the WTO
Example text
42 Developing Countries in the WTO A number of other initiatives have been adopted for LDC members since the establishment of the WTO. For example the Decision on Measures in Favour of Least Developed Countries (1994) allows LDC members to limit their commitments and concessions to an extent that is compatible with their individual development, ®nancial and trade needs, and which is consistent with their administrative and institutional capabilities. The high-level WTO meeting on LDCs in October 1997 formalized the twin-track approach in respect of special treatment of these countries, with one track emphasizing the latter's limited commitment to liberalization and the other increased commitment by the developed countries in respect of market access and technical assistance.
Similar provisions for non-reciprocity are included in Article XIX(2) of GATS, which states that `There shall be appropriate ¯exibility for individual developing country Members for opening fewer sectors, liberalizing fewer Trade and Development in GATT and the WTO 39 types of transactions, [and] progressively extending market access in line with their development situation'. Protection of domestic industry A second way in which developing countries have greater ¯exibility in protecting domestic industry is through the provisions laid down in Article XVIII of GATT, which enables developing countries to (1) implement the tariff protection required to establish a particular industry and (2) apply quantitative restrictions for balance of payments purposes.
First, access to developed- 30 Developing Countries in the WTO country markets was far more dif®cult than one might suspect given the existence of the GSP and the extensive reductions on tariffs on manufactures negotiated in previous GATT rounds. Second, just as the developing countries appeared to have successfully secured a set of trading rules that would be bene®cial to their development, the intellectual underpinnings of these rules started to be extensively questioned. There were many serious problems with market access.