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EUPreferences ABConclusions

The document discusses the Enabling Clause, which provides an exception to the MFN principle in the WTO and allows for preferential treatment of developing countries. It can fulfill the objective of promoting trade preferences for developing countries based on their particular needs. However, any preferential treatment must be designed to facilitate developing country trade without raising barriers for other members. The Enabling Clause also requires preference-granting countries to ensure identical treatment is available to all similarly situated beneficiaries.

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0% found this document useful (0 votes)
44 views

EUPreferences ABConclusions

The document discusses the Enabling Clause, which provides an exception to the MFN principle in the WTO and allows for preferential treatment of developing countries. It can fulfill the objective of promoting trade preferences for developing countries based on their particular needs. However, any preferential treatment must be designed to facilitate developing country trade without raising barriers for other members. The Enabling Clause also requires preference-granting countries to ensure identical treatment is available to all similarly situated beneficiaries.

Uploaded by

petergallagher
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Paragraph 3(a) of the Enabling

Clause provides that any


"differential and more
Those interests that developing favourable treatment ... shall be
countries have in common designed to facilitate and
promote the trade of
One objective of the WTO can Those interests shared by sub- developing countries and not
be fulfilled by promoting trade Additional preferences
categories of developing to raise barriers to or
preferences for developing may be granted to developing
countries based on their create undue difficulties
countries based on the interests of Provided that such treatment is in This is the meaning of footnote 3 countries with particular needs
particular needs For the purpose of providing for the trade of any
the recipient countries accordance with the to paragraph 2(a) of the Enabling
differential and more favourable other contracting
conditions set out in the Clause Additional preferences are parties." This requirement
treatment to developing countries, Preference-granting countries are
The MFN principle in Article I:1 Enabling Clause preferences that may be Provided that such additional applies,  a fortiori,  to any
requires WTO Members to treat required, by virtue of the term preferences are not inconsistent Paragraphs 3(a) and 3(c) of preferential treatment granted
There is an apparent To the extent that there is a granted to some developing
"like products ... equally, The Enabling Clause applies "non-discriminatory", to ensure with other provisions of the the Enabling Clause impose to one GSP beneficiary that is
conflict between the MFN conflict between measures under countries in accordance with
irrespective of their origin" The Enabling Clause is an concurrently with Article I:1 that identical treatment is available Enabling Clause, including the specific conditions on the granting not granted to another
obligation and the objective of the Enabling Clause and the MFN their particular needs, but not
exception to Article 1.1 of the to all similarly-situated GSP requirements that such of different tariff preferences
promoting trade preferences obligation in Article I:1, the  The Enabling Clause takes to other countries that do not
GATT beneficiaries, preferences be "generalized" and among GSP beneficiaries Paragraph 3(c) of the Enabling
for developing country Enabling Clause prevails over precedence  to the extent of a 'Similarly situated' countries have the same needs
"non-reciprocal" Clause authorizes preference-
members of WTO Article I:1 conflict with Article 1:1 Because it is the more specific are those that have the granting countries to
rule "development, financial and trade "respond positively" to
For example Article XX(g) needs" to which the treatment in
EUROPEAN authorizes measures for But Article XX(g) authorization question is intended to respond
"needs" that are  not 
necessarily common or
COMMUNITIES – environmental conservation which applies to measures that would
shared by all developing
is an important objective referred otherwise be contrary to the
CONDITIONS FOR THE WTO objectives may well be to in the Preamble to the WTO provisions of the Agreement countries. Responding to
AB Argument the "needs of developing
GRANTING OF TARIFF pursued through measures taken Agreement
countries" may thus entail
Legend: under exceptions provisions
PREFERENCES TO Interpolation As well as through provisions treating different developing-
DEVELOPING containing positive obligations country beneficiaries differently

COUNTRIES
Report of the Appellate Body of WTO Main line of argument

AB -- 2004 -- 1

An experimental argument map "Non-discriminatory" preferences


do not require the granting of
--- comments to -- "identical tariff preferences" to all
www.petergallagher.com.au beneficiaries

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