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Differential and more favourable treatment Reciprocity and more complete participation of developing countries

Approved by the Federal Assembly on December 12, 1979 ¹

Note: The following text was established without prejudice to any delegation's position on its final legal status. Ouelques delegations felt that this text should be included in the General Agreement ² In the form of a new article or set of new provisions. Others consider that it should be adopted by the Pa R Contracting Parties In the form of a Declaration or Decision. Consequential amendments may need to be made to take account of the decision to be taken on this point.

Notwithstanding the provisions of Article 1 of the General Agreement ³ , Contracting Parties may grant differentiated and more favourable treatment to developing countries ⁴ , without giving it to other contracting parties.

2. The provisions of paragraph 1 shall apply to the following ⁵ :

(a)

Preferential tariff treatment granted by contracting parties developed to products originating in developing countries, in accordance with the Generalised System of Preferences ⁶ ;

(b)

Differential and more favourable treatment of the provisions of the General Agreement ⁷ Relating to non-tariff measures governed by the provisions of instruments negotiated multilaterally under the auspices of GATT;

(c)

Regional or global arrangements between less developed contracting parties with a view to reducing or eliminating customs duties on a mutual basis and, in accordance with the criteria or conditions which may be prescribed by The Contracting Parties, With a view to the reduction or elimination, on a mutual basis, of non-tariff measures affecting products which these Contracting Parties import from one another;

(d)

Special treatment of least developed countries in the context of any general or specific measures in favour of developing countries.

3. Any differential and more favourable treatment accorded under this clause:

(a)

Be designed to facilitate and promote trade in developing countries and not to raise barriers or create undue difficulties in the trade of all other contracting parties;

(b)

Shall not constitute an obstacle to the reduction or elimination of customs duties or other restrictions on trade on the basis of the most-favoured-nation treatment;

(c)

Will be, if it is a treatment granted to developing countries by developed contracting parties, designed and, if necessary, modified to respond positively to the needs of development, finance and trade Developing countries.

4. ⁸ Any Contracting Party which will take measures to establish an arrangement in accordance with paragraphs 1, 2 and 3 above, or, subsequently, to amend or cease to grant differential and more favourable treatment, shall

(a)

Give notice to Contracting Parties And provide them with all the information they may deem appropriate about these measures;

(b)

Provide an adequate opportunity to proceed without delay to consultations at the request of any interested contracting party on any difficulties or issues that may arise. The Contracting Parties If that Contracting Party so requests, proceed to consultations on the matter with all the Contracting Parties concerned in order to arrive at satisfactory solutions for all those Contracting Parties.

5. Developed countries do not expect reciprocity for commitments, taken by them in trade negotiations, to reduce or eliminate tariff and other barriers to trade in developing countries, i.e. Developed countries do not expect developing countries to bring in trade negotiations on contributions that are incompatible with the development, finance and trade needs of each of these countries. The developed contracting parties will therefore not seek to obtain, and the less developed contracting parties will not be obliged to grant, concessions incompatible with the needs of development, finance and trade of these Last.

6. In view of the special economic difficulties and the special needs of development, finance and trade of the least developed countries, the developed countries will exercise the utmost restraint in seeking concessions Contributions in return for commitments made by them to reduce or eliminate tariff and other barriers to trade in those countries, and the least developed countries will not be expected to grant concessions or Make contributions incompatible with the recognition of their situation and their Specific problems.

7. The concessions granted and the contributions made. As well as the obligations assumed in the framework of the provisions of the General Agreement by developed contracting parties and the underdeveloped contracting parties should promote the fundamental objectives of the Agreement, including those that Are included in the Preamble and in Article XXXVI. The underdeveloped contracting parties expect their ability to make contributions or to grant negotiated concessions or to undertake any other mutually agreed action, within the framework of the provisions and procedures of the The General Agreement would improve with the progressive development of their economies and the improvement of their trade situation, and they would expect, therefore, to take more fully their share of all rights and obligations Arising from the General Agreement.

8. Special consideration should be given to the serious challenge faced by the least developed countries in making concessions and making contributions in view of their special economic situation and the needs for their development, Their finances and trade.

The Contracting Parties shall cooperate in the arrangements for the examination of the application of those provisions, without losing sight of the need for the Contracting Parties to endeavour, individually and collectively, to respond to the Development needs of developing countries and the objectives of the General Agreement.

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RO 1979 2589; FF 1979 III 1