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15 Pages
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15 Pages
English

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28 Oct 2005 – Why and How Differentiate. Developing Countries in the WTO? Theoretical Options and Negotiating. Solutions. Jean-Marie Paugam and ...

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Why and How Differentiate Developing Countries in the WTO? Theoretical Options and Negotiating Solutions
Jean-Marie Paugam and Anne-Sophie Novel
IFRI/ AFD Conference
“Trade for Development : the future of Special and Differential Treatment of Developing Countries”
Paris, October 28, 2005
Presentation Outline
Legal and Economic Cases for Differentiation
Theoretical Solutions for the WTO
Political Options within the DDA?
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1 - The Differentiation Principle: Legal Case
Not Only Permitted: - Legal Basis; - India - EU Appelate Body Ruling; But Already Implemented:
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Implementation of agreements establishing categories of DCs (LDCs, SCM, NFIDCs); Political recognition of sub categories (SIDSs, LLDCs)
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Chart 1: Exam
le of Differentiated WTO Sub-Cate
ories
Source: : Authors, from WTO (2005), Keck & Low (2004).Except for Senegal (recently added to the list) LDCs are not taken into account in this chart since they automatically benefit from the measures at stake
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2.
3.
1 - The Differentiation Principle: Economic Case in the Literature
“One size does not fit all”:
- International Economic Organization Other than the WTO
- Table
Trade Policy as second best development tool
Various Negative Externalities
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UN Class.
2 - Theoretical Options for the WTO
Geographic Criteria
1 Country Based  Differentiation
gionalR GRreoupingsNateulireafl,  RCleismouatrec,es
Socio Economic Indicators
SocialEconomic
Least Small Islands LandLocked Developed Developing States Developing Countries Countries SIDSs LLDCs LDCs
Institutional
Trade
FAO Categories 7
2 - Theoretical Options for the WTO
WTO Disciplines
Criteria per SDT Measure
2 Rule Based Differentiation
Stevens - Net Food Importing Developing Countries (NFIDCs) and Agreement on Agriculture (AoA)
SDT Objectives
Corresponding Group of Countries
Keck&Low - Subvention Countervailing Measures
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Stevens
Source: Authors, from Stevens (2002), FAO (2005), World Bank Online Database on Development Indicators.
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2 - Theoretical Options for the WTO
LDC+
3 Mix
Tailor Made Approach
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3 - Any Political Options for differentiation in the DDA? Political Economy of Differentiation
Development Impact - SDT Efficiency
Distribution Costs
Transaction Costs
Political Costs
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