Who Uses the Special and Differential Treatment Provisions of the WTO?

Abstract

Why do some countries promptly implement free trade rules, whereas others opt for slow adaptation? The Special and Differential Treatment (SDT) provisions serve as a tool for the developing and least-developed countries to delay the implementation of World Trade Organization (WTO) free trade rules. SDT supporters point out the positive impacts of the provisions in facilitating free trade in the long term. In their view, developing countries may improve their economic status by increasing their chances of participating in free trade. SDT provisions can play a positive role, although they prolong the prompt implementation of free trade rules. However, not all poor WTO members utilize SDT provisions when implementing free trade rules. Some poor members accept the rules without requesting SDT. This study attempts to answer why some such member countries of the WTO use SDT provisions more than others. We found that member countries’ (1) domestic policy implementation capabilities and (2) international socialization determine the utilization of the provisions. When countries lack these factors, they are more likely to request provisions. Our argument is supported by evidence from the implementation of the WTO’s Trade Facilitation Agreement (TFA). World Trade Organization, Special and Differential Treatment, Trade Facilitation Agreement, policy implementation capability, international socialization