Special and Differential Treatment of Developing Countries in the WTO

27 Pages Posted: 24 May 2014

See all articles by Paola Conconi

Paola Conconi

Centre for Economic Policy Research (CEPR); Université Libre de Bruxelles (ULB) - European Center for Advanced Research in Economics and Statistics (ECARES)

Carlo Perroni

University of Warwick - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: May 2014

Abstract

Rules on special and differential treatment (SDT) constitute the centerpiece of the WTO's strategy for integrating developing countries into the world trading system. We examine the theoretical rationale for SDT when trade liberalization in developing countries is impeded by a policy commitment problem. We show that SDT rules, if reconciled with the principle of reciprocity, can help developing countries to reduce trade barriers and improve their trading prospects.

Keywords: Trade agreements, S&D rules, commitment, reciprocity

JEL Classification: D72, D78, F13

Suggested Citation

Conconi, Paola and Perroni, Carlo, Special and Differential Treatment of Developing Countries in the WTO (May 2014). Robert Schuman Centre for Advanced Studies Research Paper No. RSCAS 2014/60. Available at SSRN: https://ssrn.com/abstract=2441120 or http://dx.doi.org/10.2139/ssrn.2441120

Paola Conconi (Contact Author)

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Université Libre de Bruxelles (ULB) - European Center for Advanced Research in Economics and Statistics (ECARES) ( email )

Ave. Franklin D Roosevelt, 50 - C.P. 114
Brussels, B-1050
Belgium
32 2 650 2345 (Phone)
32 2 650 4475 (Fax)

Carlo Perroni

University of Warwick - Department of Economics ( email )

Coventry CV4 7AL
United Kingdom
44 24 7652 8416 (Phone)
44 24 7652 3032 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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