The Failure of Special and Differential Treatment in International Trade: An Indication for Future WTO Rules

Abstract

The WTO is at stake nowadays. Developing and developed countries are criticizing each other for breaking the basis of world trade. Developed countries criticize developing countries for seizing most of the fruits of world trade; while developed countries criticize developing countries for unequally implementing the WTO rules. One of the core issues in the argument is about special and differential (S&D) treatment under WTO rules. S&D treatment exists because of the unbalance reality of economic development. However, S&D treatment does not function well in reducing the unbalancing gap for lacking the comprehensive understanding towards development. It is considered because market access and knowledge diffusion are not emphasized as much as possible under WTO rules. Firstly, that S&D treatment is too vague to be applied is one of the reasons. The other reason is that the application of compulsory licensing and technical transfer is too limited, failing to diffuse the knowledge. Therefore, corresponding improvement can be made.