Revisiting Special Preferences for Developing Countries

The inherent tension between trade preferences and the Most-Favoured Nation (MFN) principle has been mainly examined in the context of regional free trade agreements and customs unions. Much less attention has been given to non-reciprocal special trade preferences given by developed countries to developing countries. WTO rules on these special preferences are less explicit than WTO rules governing free trade agreements and customs unions. The Doha Round of the WTO negotiations should not neglect this aspect of trade relations between developed and developing countries. Tariff preferences by developed countries in favour of developing countries are welcome, because they further trade and growth in developing countries. They may be even more welcome if they are given without reciprocity. But these tariff preferences can creIPC Issue Brief Number One