Question

1. Consider the details of GATT Articles XXXVI – XXXVIII provisions regarding developing countries, and identify the specifically important features of benefit to developing countries

Answer 1

In 1965 the GATT was added as a result of the Haberler Report of 1958 and the developing countries 'political initiatives of the 1960s. Part IV is provided for in Articles XXXVI, XXXVII and XXXVIII.

Article XXXVI is a hortatory provision of 'principles and objectives' which state the need to raise living standards in developing countries, the need to 'rapid and extend' their export earnings and their expanded exposure of their goods to the world market. Article XXXVI sets out the idea that developing countries "do not anticipate reciprocity" on their tariff withdrawal or elimination agreements and other trade barriers. In enabling clause this idea is repeated.
Developing countries depend on this idea in trade agreements and waiver applications.

Article XXXVI also sets out the idea that developed countries should collaborate with developing countries by consulting them before taking any action which would adversely affect their interests.

Article XXXVII is entitled but has had no direct impact. The obligations are very broad and eligible by the expression "except where compelling reasons, which may include legal grounds, render it difficult," it includes the duty to consult and report. Reflects developed countries 'ambitions to "stop" tariff increases on their goods and exemptions from acts otherwise allowed under the GATT. Those include anti-dumping taxes, countervailing duties, and protections. Such commitments are defined by the phrases "make every effort," "give active consideration" and "bear special consideration."Such credentials make the duties nugatory.

Article XXXVIII also allows the parties to take "joint measures" to achieve the goals of Article XXXVII. Requires "such institutional arrangements as may be appropriate" to be established; it has a very limited effect without the additional steps envisaged in those provisions.

There is no description under the GATT for a Developed and Developing world. The countries are therefore free to identify themselves as developed countries or developing countries. The Developing World description is very ambiguous. Also, China opted for the Developing Country tag because of this vagueness.

Need for Special and Differential Treatment:

From the outset, the arguments for SDT occupied a range of positions, based on varying and shifting perceptions of developing countries 'needs and with International Framework Specifications. Any 'special' treatment can only be established in relation to what is 'usual,' so SDT must depend on what laws are commonly agreed, e.g. Most Favoured Nation's GATT criteria and obligations reciprocity. What would support growth depends on explicit or implied assumptions as to what 'growth' is and whether and how this can be affected by policy and trade. This is also affected by perceptions of the new 'developing countries' characteristics. The technology was seen to be practically synonymous with industrialization in the 1940s and 1950s. The emerging program endeavored to meet two standards. To provide the conditions for effective, non-distorted development, it was intended to be a 'rule-based' framework, providing equal access and certain terms of trade for all. It also tried to help growth, by offering what is considered to be suitable for developing countries. The focus was initially on promoting diversification and industrialization. Nonetheless, the findings were often compromises that could be explained on more than one point of view on what would be 'good for growth.'