Special

1

• Special Differential Treatment for Developing
  Countries
• by P. Brusick
• Head, Competition and Consumer Policies Branch
• UNCTAD

2
Historic Perspective of S D

• UNCTAD (1964)
• Special and Preferential Trade Concessions for
  Developing Countries
• General System of Preferences (GSP)
• GSTP among developing countries
• Special Differential Treatment in GATT

3
Evolution of SD in GATT/WTO

• Non-reciprocity
• Graduation gradual phasing-out of concessions
• SD in Uruguay Round Agreements
• Focus on

• Technical cooperation
• Transition phase (2 years for DCs/4 years for
  LDCs)

4
S D in the Competition Policy Context at WTO

• Working Group
• Flexibility possible exemptions
• Progressivity (or Graduality) Competition laws
  could be phased in, from simple to more complete

5
Example of graduality in adoption or
implementation of competition law

• First period mainly educational
• Second period prohibition of cartels
• Third period control of vertical
  restraints abuse of dominance
• Fourth and final introduction of merger
  controls

6
S D in the Competition Policy Context

• Capacity building and technical assistance
• Transitional phase learning process
• Flexibility sectorial exemptions (with or
  without time limitations)
• Non-reciprocal undertakings by developed countries

7
What kinds of agreements could be subject to S
D?

• Bilateral cooperation agreements between a
  developed and a developing country
• Regional cooperation agreement
• Multilateral agreement on Competition Law and
  Policy
• ? (ex the UN Set contains a provision for
  preferential or differential treatment)

8
Possible outlook for SDT

• Cancun has stopped the WTO process on all the
  Singapore Issues, considered harmful
• There was no discussion on the merits of
  competition policy
• Together, developing countries had better chances
  of obtaining significant concessions on SDT

9
Possible outlook for SDT (cont.)

• Since Cancun, competition policy aspects are
  included in bilateral or regional FTAs or EPAs
• Singly, in bilateral negotiations, developing
  countries almost invariably get weaker deals
  (Bagwati)

10
Possible outlook for SDT (cont.)

• Once many developing countries have entered
  bilateral or regional free trade agreements, it
  might be more difficult for the remaining
  developing countries to have sufficient
  bargaining power to get significant SDT
  concessions at the multilateral level.