The United States on Friday proposed a reform of the World Trade Organization (WTO) that would reduce the number of countries eligible for “special and differential treatment,” a plan that is likely to be resisted by China, India and other nations.
Washington has long complained that WTO members such as China and India can designate themselves as “developing countries.”, which entitles them to a number of benefits and lenient treatment within the organization.
Most of the WTO's 164 members say they are developing, including major trading powers such as China and India, and some of the world's richest countries such as South Korea, Saudi Arabia, Brunei, Hong Kong, Qatar and Oman.
Special and differential treatment grants developing nations longer periods of time to implement agreed commitments, measures to increase trade opportunities and double the amount of agricultural subsidies available to developed countries.
The draft published on the WTO website argues that special treatment should be suspended in current and future trade negotiations. to countries classified as “high income” by the World Bank, OECD members or adherents, G-20 nations, and any state accounting for 0,5% or more of world trade.
Some WTO members, such as India, insist that the promise to reform trade rules to boost developing countries must be kept. before the entity can move toward negotiating new rules in other areas.
The United States rejects such demands, partly because China joined the WTO in the same year the Doha promise was made – in 2001 – and its meteoric growth since then has undermined the argument for giving developing countries special deals.
Source: Reuters
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
