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The WTO and the poorest countries: the stark reality

Published online by Cambridge University Press:  22 December 2004

AADITYA MATTOO
Affiliation:
World Bank
ARVIND SUBRAMANIAN
Affiliation:
International Monetary Fund

Abstract

Small and poor countries pose a challenge for the World Trade Organization (WTO). These countries have acquired a significant say in WTO decision-making. However, they have limited ability to engage in the reciprocity game that is at the heart of the WTO, and have limited interests in the broader liberalization agenda because of their preferential access to industrial country markets. Accommodating the interests of the small and poor countries is desirable in itself, but would also facilitate expeditious progress in the Doha Round. The stark reality facing the system is that the desirable ways of addressing their concerns – providing them additional financial assistance and nonpreferential market access – is proving infeasible. As a result, the system is gravitating toward the less desirable option of relieving these countries of obligations, including those that might be welfare-enhancing for them.

Type
Keynote article
Copyright
2004 Aaditya Mattoo and Arvind Subramanian

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Footnotes

The views expressed in this paper are the authors' own and do not necessarily reflect those of the institutions with which they are affiliated. They would like to thank Mark Allen, Nancy Birdsall, Peter Clark, Bill Cline, Kymberly Ann Eliott, Bernard Hoekman, Nurul Islam, Alejandro Jara, Hans-Peter Lankes, Julia Nielson, Roger Nord, Dani Rodrik, André Sapir, Stephen Tokarick, Alan Winters, participants at the Center for Global Development seminar, and an anonymous referee for helpful comments.