Abstract

PurposeSpecial and differential treatment (SDT) in the World Trade Organisation (WTO) has failed to integrate developing countries into the international trading system, as contemplated by the WTO Agreement, itself. This paper aims to interrogate the current application of SDT by WTO members as the possible undermining factor for SDT not delivering on its objective.Design/methodology/approachThe research uses a qualitative legal methodology. This study conducts desk analysis of primary legal materials and existing literature to assess current reflections of SDT and draw lessons for reforms in the WTO.FindingsFrom interrogating current SDT practice in the WTO and a comparative analysis with a similar differential treatment under the Montreal Protocol, this paper finds that indeed, the problem lies in the current approach to SDT application in the WTO. This study finds that the existing absence of eligibility criteria for determining access to SDT by countries is the core reason for the abuse and sub-optimal outcome from its application.Originality/valueWhile making a case for a rules-based approach to differentiation in the WTO, this paper proposes a unique methodology for differentiating between developing countries for SDT, including the use of a composite indicator to ensure that indicators that are used sufficiently reflect their heterogeneous needs. Drawing inspiration from Gonzalezet al.(2011a), this study introduces an adaptation for selecting a threshold for graduation. Specifically, the proposal on the value of the standard deviation of countries from the weighted mean of the composite indicator as the threshold for graduating countries from SDT is novel.

Highlights

  • The use of special and differential treatment (SDT) in the World Trade Organisation (WTO) has attracted a great deal of academic attention and it is widely debated whether SDT is a© Aniekan Ukpe and Sangeeta Khorana

  • Conclusion and the way forward Globalisation has altered the pattern of world trade and a few developing countries have progressed from being traditional goods exporters to becoming partners in preferential trade agreements

  • Sen (1999) opined that a major failing of the current SDT approach has been its usage as the basis for exempting developing countries from WTO obligations instead of helping these countries comply with WTO obligations to support full integration into the global trading system

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Summary

Introduction

The use of special and differential treatment (SDT) in the World Trade Organisation (WTO) has attracted a great deal of academic attention and it is widely debated whether SDT is a© Aniekan Ukpe and Sangeeta Khorana. The use of special and differential treatment (SDT) in the World Trade Organisation (WTO) has attracted a great deal of academic attention and it is widely debated whether SDT is a. Journal of International Trade Law and Policy. Our paper aims to critique the current framework for SDT, review extant literature and propose an alternative framework for determining eligibility for and content of SDT

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