The Special and Differential Treatment Provisions in the Trade Facilitation Agreement: New Teeth for an Old Gum?

Abstract

Various provisions on special and differential treatment of developing countries have been enacted from the time of the General Agreement on Tariffs and Trade 1947 (GATT 1947) through to the current era of the World Trade Organisation (WTO). Perhaps the most significant epoch in the recognition of the special and differential treatment of developing countries in the international trade regime was the 1979 Decision on Differential and More Favourable Treatment, Reciprocity and Fuller Participation of Developing Countries, more popularly known as the Enabling Clause. The Enabling Clause, inter alia, allowed for a permanent derogation from the most favoured nation provision in Article I of the GATT 1947 in order to enable developed countries grant preferential treatment to goods coming from developing countries. The advent of the WTO in 1995 also came with specific provisions in the multilateral trade agreements that catered for the special needs of developing countries. Developing countries have, however, raised concerns regarding the effectiveness and utility of most of the special and differential treatment provisions considering the fact that most of these provisions have been formulated in non-mandatory language and thus do not obligate compliance. This article considers the special and differential treatment of developing countries in WTO law and analyses similar provisions in the most recent multilateral trade agreement in the WTO - the Trade Facilitation Agreement - which came into effect on 22 February 2017. The article aims to ascertain the effectiveness of special and differential treatment provisions in the Trade Facilitation Agreement with respect to addressing long-standing concerns of developing countries.