Special & Differential Treatment

Question 1

what is SDT:

Answer 1

• Special and Differential Treatment
• where certain nations are given tailored trading conditions to allow them to compete in global markets and not be disadvantaged by their economic situation

Question 2

why would newly independent nations not be able to trade freely?

Answer 2

-they would be excluded by protectionist policies form wealthier nations who do not want to see their markets flooded with cheaper imports

Question 3

which organisation aimed to help these nations?

Answer 3

United Nations Conference on Trade And Development

UNCTAD

Question 4

an LDC is a

Answer 4

Least Developed Country

Question 5

the UN created the LDC category to:

Answer 5

• provide support to disadvantaged countries and give aid to help development
• under this category, countries are granted access to developed markets by the UN

Question 6

SDTs can benefit LDC because:

Answer 6

• SDTs provide incentives for export diversification
• this means the LDC is less vulnerable to economic crisis and will have more stable revenues, so FDI will increase
• this then promotes faster income growth and development

Question 7

arguments for helping LICs to access SDTs are:

Answer 7

• developing countries should be allowed additional freedom to subsidise exports as this will promote development and lead to investment
• LICs should enjoy privileged access tot eh markets of their trading partners in order to create a more stable economy and encourage economic growth and development

Question 8

impacts of SDTs on LICs are

Answer 8

• SDTs have encouraged LIC economies to diversify and achieve economic growth
• once more people are lifted out of poverty, the service and tourist industry develops

Question 9

arguments against SDTs are:

Answer 9

• not all LDCs are part of the WTO and it can take 8-10 years to be accepted
• not all LDCs use SDTs or are aware of their existence
• some measures do not cater for the needs or situations in LDCs
• richer countries worry that this is a non-reciprocal process that will lead to cheap imports from LDCs flooding the home market and undermining their own industrial base.