Context:

The United States is asserting pressure on the World Trade Organization to change how it designates developing countries, singling out China for unfairly getting preferential treatment.

Definition of developing countries:

• There are no WTO definitions of “developed” and “developing” countries.
• Members announce for themselves whether they are “developed” or “developing” countries.
• However, other members can challenge the decision of a member to make use of provisions available to developing countries.
• A developing country is also known as a low and middle-income country (LMIC).
• In the WTO, developing countries are entitled to “special and differential treatment”.

The provision referred to as Special and Differential Treatment:

• Longer time periods for implementing 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, and
• Provisions related to least-developed country (LDC) Members.

About WTO:

• The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.
• The WTO was born out of GATT, an international trade agreement signed by 23 countries in 1947.
• The goal is to help producers of goods and services, exporters, and importers conduct their business.
• The WTO is run by its member governments. All major decisions are made by the membership as a whole, by Ministerial Conference (usually meet once in two years).