USTR Robert Lighthizer Statement on the President’s Memorandum on Reforming Developing-Country Status in the WTO

On July 26, 2019, U.S. Trade Representative Robert Lighthizer released the following statement on President Trump’s directive regarding the use of special and differential treatment at the World Trade Organization (WTO):

“For far too long, wealthy countries have abused the WTO by exempting themselves from its rules through the use of special and differential treatment. This unfairness disadvantages Americans who play by the rules, undermines negotiations at the WTO, and creates an unlevel playing field. I applaud the President’s leadership in demanding fairness and accountability at the WTO, and I look forward to implementing the President’s directive.”

Some "developing" countries, such as Bangladesh, Cambodia, China, and India are major exporters of textiles and apparel.

Developing country status in the WTO brings certain rights. There are for example provisions in some WTO Agreements which provide developing countries with longer transition periods before they are required to fully implement the agreement and developing countries can receive technical assistance. About two thirds of the WTO’s around 164 members are developing countries.

Some measures concerning developing countries in the WTO agreements include:

• extra time for developing countries to fulfil their commitments (in many of the WTO agreements)
• provisions designed to increase developing countries’ trading opportunities through greater market access (e.g. in textiles, services, technical barriers to trade)
• provisions requiring WTO members to safeguard the interests of developing countries when adopting some domestic or international measures (e.g. in anti-dumping, safeguards, technical barriers to trade)
• provisions for various means of helping developing countries (e.g. to deal with commitments on animal and plant health standards, technical standards, and in strengthening their domestic telecommunications sectors).

There are no WTO definitions of “developed” or “developing” countries. Developing countries in the WTO are designated on the basis of self-selection.