Answer to Question #242139 in English for Erik

Question

Why GATT and WTO continue to assist underdeveloped countries? 

What do they get in exchange for their assistance? Is there any impact in the way they assist these countries? when it comes to the global economy

Answer 1

The World Trade Report 2014 argues that the WTO has enabled developing countries to take advantage of, adapt to and mitigate risks arising from these trends. It has done so by ensuring that countries take binding commitments which increase certainty over their trade policies, by providing flexibilities that better allow developing countries to undertake such commitments, and by facilitating technical assistance to build trading capacity within those economies.

In addition, countries undertaking substantial reforms related to WTO accession were found to grow around 2.5 per cent faster for several years afterwards, the report notes. The World Trade Report 2014 argues that the WTO has enabled developing countries to take advantage of, adapt to and mitigate risks arising from these trends. It has done so by ensuring that countries take binding commitments which increase certainty over their trade policies, by providing flexibilities that better allow developing countries to undertake such commitments, and by facilitating technical assistance to build trading capacity within those economies.

In addition, countries undertaking substantial reforms related to WTO accession were found to grow around 2.5 per cent faster for several years afterwards, the report notes.

A second way in which developing countries have greater flexibility in providing protection to domestic industry is through the provisions of GATT Article XVIII, which give developing countries the freedom to: be able to grant the tariff protection required for the establishment of a particular industry.