The Evolution of Special and Differential Treatment

The majority of WTO members are now developing countries. Yet, until the launch of the Doha Development Round, their interests remained on the periphery of multilateral trade negotiations. Because development is at the center of the Doha Round, developing countries must seize the moment to obtain an agreement that promotes their integration into the world economy and provides an opportunity to compete in the global marketplace. First and foremost, that means developed countries must reduce trade-distorting domestic subsidies, eliminate government funded export competition, and increase market access. But, it also means that developing countries must ensure that the Doha Round helps them take advantage of more open markets, both as exporters and as importers. In the early years, the GATT dealt primarily with reciprocal tariff negotiations, where developing countries had little to give. In the early 1960's, as a result of pressures from UNCTAD and the Group of 77, a development dimension (Part IV) was introduced into the GATT. Part IV opened the door for preferential treatment of developing countries and provided some flexibility to the strict reciprocity conditions of the GATT. However, despite Special and Differential Treatment, the early rounds of trade negotiations did little to benefit developing countries. When the Uruguay Round negotiations were launched, the growing integration of the global economy, the emergence of competitive developing country exporters, and the increased understanding of the positive role trade can play in economic development brought the interests of developing countries into the trade negotiations. Nowhere was this truer than in agriculture. However, the Uruguay Round agricultural negotiations fo-cused mainly on developed country agricultural policies and their impact on competitive developing country exporters, who were mostly members of the Cairns Group. The effect of these policies on developing country farmers and consumers, who are among the world's poorest citizens, was not a central focus of the negotiations. The Doha Round must continue to reduce the distortions on world markets, but it must also deliver greater and quicker benefits to developing countries.