Abu Dhabi: The United States submitted a communication to the World Trade Organization (WTO) under document WT/GC/W/757 “An undifferentiated WTO: self-declared development status risks institutional irrelevance.” This paper says countries at the WTO should not be allowed to self-declare themselves as “developing countries.” US also notes that developed countries have been severely disadvantaged in the WTO system due to Special and Differential Treatment (S&D) flexibilities that all developing countries enjoy.

Under the existing WTO conventions, S&D gives developing countries unilateral flexibility in implementing obligations and enjoins developed countries to treat them favorably. S&Ds are categorized into four:

  • Longer time periods for implementation of agreements and commitments
  • Measures to increase trading opportunities for developing countries
  • Provisions requiring all WTO members to safeguard the trade interests of developing countries
  • Support to help developing countries build the capacity to carry out WTO work, handle disputes and implement technical standards.

According to the US proposal, the WTO’s inability to clearly distinguish developing and non-developing countries among member states causes negotiations to fail. The continued lack of institutional work also puts the WTO on a difficult position before negotiating in disciplines to meet the challenges of today or tomorrow.

The US presented the criteria designed to identify developing countries eligible for S&D rather than the countries making the self-delegation themselves. As per the proposal, the UAE is outside the list of countries eligible for S&D.

The Ministry of Economy reiterated that any proposal submitted by any member state should be approved by all WTO members first as required by the set rules. The UAE, assured the Ministry, will cooperate with the organization’s decision and will support any approach agreed on by the developing countries. The Ministry maintained that this latest development, if approved, shall not affect the UAE’s current obligations and interests in the WTO due to the following reasons:

  • The UAE has been timely completing its trade obligations since 1996, in view of the fact that it believes in the trade liberalization principle. On the other hand, the WTO early accession has helped disallow high ceilings that are difficult to apply and implement.
  • The UAE is a pivotal trade hub in the region and the world. Therefore, the country does not need the flexibility given to developing countries in relation to increasing trade opportunities. The Arab state has long positioned itself on the global trade map thanks to its free trade policy.
  • The country has vibrant trade activities in the region with many international businesses showing great interest in the UAE because of its advanced infrastructure and given the fact that it serves as gateway to other markets in the Middle East and Africa. Therefore, on taking into account the commercial interests of developing countries, the UAE will not be significantly affected by virtue of its status as the region’s vital trade center.
  • The country can benefit from technical support programs across all fields through self-financing. Providing technical support to WTO members is important but funding these programs will not pose any problem to the state.

-Ends-

For further information, please contact:
Orient Planet PR & Marketing Communications
P.O. Box: 500266
Dubai, United Arab Emirates
Tel:  00971 4 4562888
Email : media@orientplanet.com
Website: www.orientplanet.com 

© Press Release 2019

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.