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Great Leaps Forward and GATT Article XVIII

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  • Kerr, William A.

Abstract

GATT Article XVIII provides developing countries with a mechanism to ask to be released from some WTO obligations when embarking on major attempts at developing their economies. These include increasing tariff protection beyond bound tariff levels, imposing quantitative restrictions, particularly to assist in managing balance of payments difficulties, and the use of subsidies. The ability to avail oneself of Article XVIII provisions is not, however, free as countries must inform the WTO membership of their intent to use the provisions, respond to requests for consultations and possibly negotiate compensation in good faith. Since 1955 when Article XVIII was amended, the use of its provisions has been very limited – many developing countries may perceive the requirements too onerous. More prosperous developing countries, however, are planning major initiatives – Great Leaps – to developed status and have the wherewithal to meet the constraints on using Article XVIII. Subsidies are the likely policy. These countries perceive opportunities in the technological disequilibrium of the current global economy with new industries and technologies awaiting investment.

Suggested Citation

  • Kerr, William A., 2024. "Great Leaps Forward and GATT Article XVIII," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 25(01), June.
    • Handle: RePEc:ags:ecjilt:343521
    DOI: 10.22004/ag.econ.343521
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    References listed on IDEAS

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    2. Hsiung-Shen Jung & Jui-Lung Chen, 2019. "Causes, Consequences and Impact of the Great Leap Forward in China," Asian Culture and History, Canadian Center of Science and Education, vol. 11(2), pages 1-58, September.
    3. Kerr, William A., 2020. ""Aggressive Unilateralism" - The New Focus of US Trade Policy," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 21(01), June.
    4. Salvatore, Ricardo D., 2004. "Stature decline and recovery in a food-rich export economy: Argentina 1900-1934," Explorations in Economic History, Elsevier, vol. 41(3), pages 233-255, July.
    5. Kerr. William Alexander, 2022. "he Rules of Trade in the Face of Long Running Disequilibrium," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 23(01), June.
    6. Kerr. William A., 2019. "Loopholes, Legal Interpretations and Game Playing: Whither the WTO without the Spirit of the GATT?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 19(2), December.
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