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Title

EXPLANATION OF ENABLING CLAUSE IN WORLD TRADE ORGANIZATION

Writers

REZAEI ALI

Pages

 Start Page 451 | End Page 469

Abstract

 World Trade Organization (WTO) has principles among which one of the most important is NON-DISCRIMINATION PRINCIPLE. Under this principle, the organization members should have equal treatment with each other. But since countries are not equal in terms of developmental situation, log in developing or less developed countries to the WTO, requires serious attention to the competitiveness of the economies of developing countries, in order to not being affected during compete with the developed countries. That is why, under enabling clause which is continuation of the GENERALIZED SYSTEM OF PREFERENCES, developed countries may accord differential and more favorable treatment to developing countries, without according such treatment to other contracting parties. Although, preferences are granted on a voluntary basis, this does not mean that preferences should not be subject to WTO rules. Trade preferences which should be generalized, non-reciprocal and non-discriminatory, are granted on conditionality and selectivity basis that could frustrate the efficiency of the device and its philosophy, namely to encourage and promote economic development in developing countries.

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