Decision
of 28 November 1979 (L/4903)
Following
negotiations within the framework of the Multilateral Trade
Negotiations, the CONTRACTING PARTIES decide as follows:
1.
Notwithstanding the provisions of Article I of the General Agreement,
contracting parties may accord differential and more favourable
treatment to developing countries(1),
without according such treatment to other contracting parties.
2.
The provisions of paragraph 1 apply to the following(2):
a)
Preferential tariff treatment accorded by developed contracting
parties to products originating in developing countries in accordance
with the Generalized System of Preferences(3),
b)
Differential and more favourable treatment with respect to the
provisions of the General Agreement concerning non-tariff measures
governed by the provisions of instruments multilaterally negotiated
under the auspices of the GATT;
c)
Regional or global arrangements entered into amongst less-developed
contracting parties for the mutual reduction or elimination of tariffs
and, in accordance with criteria or conditions which may be prescribed
by the CONTRACTING PARTIES, for the mutual reduction or elimination of
non-tariff measures, on products imported from one another;
d)
Special treatment on the least developed among the developing
countries in the context of any general or specific measures in favour
of developing countries.
3.
Any differential and more favourable treatment provided under this
clause:
a)
shall be designed to facilitate and promote the trade of developing
countries and not to raise barriers to or create undue difficulties
for the trade of any other contracting parties;
b)
shall not constitute an impediment to the reduction or elimination of
tariffs and other restrictions to trade on a most-favoured-nation
basis;
c)
shall in the case of such treatment accorded by developed contracting
parties to developing countries be designed and, if necessary,
modified, to respond positively to the development, financial and
trade needs of developing countries.
4.
Any contracting party taking action to introduce an arrangement
pursuant to paragraphs 1, 2 and 3 above or subsequently taking action
to introduce modification or withdrawal of the differential and more
favourable treatment so provided shall:(4)
a)
notify the CONTRACTING PARTIES and furnish them with all the
information they may deem appropriate relating to such action;
b)
afford adequate opportunity for prompt consultations at the request of
any interested contracting party with respect to any difficulty or
matter that may arise. The CONTRACTING PARTIES shall, if requested to
do so by such contracting party, consult with all contracting parties
concerned with respect to the matter with a view to reaching solutions
satisfactory to all such contracting parties.
5.
The developed countries do not expect reciprocity for commitments made
by them in trade negotiations to reduce or remove tariffs and other
barriers to the trade of developing countries, i.e., the developed
countries do not expect the developing countries, in the course of
trade negotiations, to make contributions which are inconsistent with
their individual development, financial and trade needs. Developed
contracting parties shall therefore not seek, neither shall
less-developed contracting parties be required to make, concessions
that are inconsistent with the latter’s development, financial and
trade needs.
6.
Having regard to the special economic difficulties and the particular
development, financial and trade needs of the least-developed
countries, the developed countries shall exercise the utmost restraint
in seeking any concessions or contributions for commitments made by
them to reduce or remove tariffs and other barriers to the trade of
such countries, and the least-developed countries shall not be
expected to make concessions or contributions that are inconsistent
with the recognition of their particular situation and problems.
7.
The concessions and contributions made and the obligations assumed by
developed and less-developed contracting parties under the provisions
of the General Agreement should promote the basic objectives of the
Agreement, including those embodied in the Preamble and in Article
XXXVI. Less-developed contracting parties expect that their capacity
to make contributions or negotiated concessions or take other mutually
agreed action under the provisions and procedures of the General
Agreement would improve with the progressive development of their
economies and improvement in their trade situation and they would
accordingly expect to participate more fully in the framework of
rights and obligations under the General Agreement.
8.
Particular account shall be taken of the serious difficulty of the
least-developed countries in making concessions and contributions in
view of their special economic situation and their development,
financial and trade needs.
9.
The contracting parties will collaborate in arrangements for review of
the operation of these provisions, bearing in mind the need for
individual and joint efforts by contracting parties to meet the
development needs of developing countries and the objectives of the
General Agreement.
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