A New Approach to Special and Differential Treatment
This article comes from the International Policy Council concerning Food & Agricultural Trade. It goes into discussion about developing countries, how they are categorized and how they should be categorized to receive the most benefit for their level of development and to phase out Special and Differential Treatment as they become more developed. Currently, the WTO has developing countries labeled as 'Least Developed Countries' and 'all other developing countries'. The IPC proposes that developing countries be separated by their per capita incomes into three categories. Each level as it is more developed would have shorter implementation periods (for things such as subsidy reductions) and more reduction commitments. They want the WTO to adopt these Special and Differential Treatment changes for Market Access, Export Competition, and Domestic Support. By doing these things, the IPC feels that it will help the LDC's become more developed and help the Upper Middle Income Developing Countries to enter the World Market, all while allowing the developing countries to meet their domestic agricultural needs.
I myself, do not see how creating an extra category for developing countries by per capita income would allow them to reach these goals any faster or more efficient unless it is used as a definitive weaning program off of S&D treatment. The income levels used as the determinants in this categorization seem a bit irrelevant. I would suggest weaning developing countries off of S&D Treatment at a particular gross national income at $5,000 for example. There is not enough distinction between $3035 per capita income and $3036 per capita income to encourage a country to become more developed.
http://www.agritrade.org/Publications/Position%20Papers/13%20SND.htm
I myself, do not see how creating an extra category for developing countries by per capita income would allow them to reach these goals any faster or more efficient unless it is used as a definitive weaning program off of S&D treatment. The income levels used as the determinants in this categorization seem a bit irrelevant. I would suggest weaning developing countries off of S&D Treatment at a particular gross national income at $5,000 for example. There is not enough distinction between $3035 per capita income and $3036 per capita income to encourage a country to become more developed.
http://www.agritrade.org/Publications/Position%20Papers/13%20SND.htm

3 Comments:
At 2:10 PM, Kim Knott said…
I wonder if creating another category could also determine how much aid or assistance those developing countries would receive from the WTO or IMF. The least developed countries could receive more aid than the more developed countries.
At 10:29 PM, Carol Fynan said…
The least developed countries should receive more aid than the more developed countries. A new policy should not change that.
At 6:08 PM, Bdown4u said…
I agree with the poster of this blog. There needs to be some type of cap on the gross national income level...i.e. $5000.
I wonder about the progression of those economies who have recieved S&D.
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