Trade and competition in the WTO: Pondering the applicability of special and differential treatment

This article critically evaluates the potential applicability of special and differential treatment ('S&D') as a mechanism for addressing development concerns often associated with a possible WTO agreement on trade and competition policy. It begins by examining the origins, evolution, and current S&D provisions in the GATT and WTO. It then addresses S&D in a trade and competition context, by first evaluating its broad relevance and then exploring a number of options to formulate the concept in order to most effectively advance development objectives in this nascent area. While the article advocates that S&D could play a valuable role in addressing the special challenges faced by developing countries at this policy interface, it highlights where opinions differ, or empirical evidence is lacking, on the true developmental value of the various options explored. This is particularly the case concerning exceptions and exemptions, to competition regimes, the role of transitional time periods, and the optimal phasing in of competition policy. Thus the article argues that in a trade and competition policy context S&D is not a panacea, and cautions against S&D being used to delay or exempt the introduction of competition disciplines, where such disciplines would be of benefit to developing countries.