Special and Differential Treatment as If It Could Be Reformed

Abstract

The central question posed by the longstanding debate among World Trade Organization (WTO) Members over special and differential treatment (S&DT) is how best to address legitimate demands for differentiation. Should this be done by replacing the self-designation of development status by a set of objective metrics distinguishing different categories of WTO Members? Or should Members alternatively focus their efforts on addressing objectively assessed capacities and needs in a more customized manner and on a case by case and agreement-specific basis? This note’s review of the S&DT debate suggests that rather than focusing on the divisive issue of development status, where prospects for consensus appear non-existent, WTO Members should design S&DT support focusing on objectively assessed negotiating and implementation needs to which targeted Aid for Trade would respond. A forward-looking approach to differentiation within the WTO requires that an altogether different narrative on trade and development take root in the organization, one that ascribes to trade (and to trade policy) a key supportive role in development trajectories. All too often, S&DT demands are formulated as if multilateral rules are inherently inimical to the development needs and aspirations of the world’s poorest nations. The note advances several reform options in charting a forward-looking S&DT agenda. Trade and development, trade governance, developing countries, least developed countries, special and differential treatment, World Trade Organization