negotiations within the framework of the Multilateral Trade Negotiations,
the CONTRACTING PARTIES decide as follows:
Notwithstanding the provisions of Article
I of the General Agreement, contracting parties may accord differential
and more favourable treatment to developing countries,
without according such treatment to other contracting parties.
The provisions of paragraph 1 apply to the following:
(a) Preferential tariff treatment accorded by developed contracting
parties to products originating in developing countries in accordance
with the Generalized System of Preferences;
(b) Differential and more favourable treatment with respect to
the provisions of the General Agreement concerning non-tariff measures
governed by the provisions of instruments multilaterally negotiated
under the auspices of the GATT;
(c) Regional or global arrangements entered into amongst less-developed
contracting parties for the mutual reduction or elimination of tariffs
and, in accordance with criteria or conditions which may be prescribed
by the CONTRACTING PARTIES, for the mutual reduction or elimination
of non-tariff measures, on products imported from one another;
Any differential and more favourable treatment provided under this
(a) shall be designed to facilitate and promote the trade of developing
countries and not to raise barriers to or create undue difficulties
for the trade of any other contracting parties;
(b) shall not constitute an impediment to the reduction or elimination
of tariffs and other restrictions to trade on a most-favoured-nation
(c) shall in the case of such treatment accorded by developed contracting
parties to developing countries be designed and, if necessary, modified,
to respond positively to the development, financial and trade needs
of developing countries.
Any contracting party taking action to introduce an arrangement
pursuant to paragraph 1, 2 and 3 above or subsequently taking action
to introduce modification or withdrawal of the differential and more
favourable treatment so provided shall:
(a) notify the CONTRACTING PARTIES and furnish them with all the
information they may deem appropriate relating to such action;
(b) afford adequate opportunity for prompt consultations at the
request of any interested contracting party with respect to any difficulty
or matter that may arise. The CONTRACTING PARTIES shall, if requested
to do so by such contracting party, consult with all contracting parties
concerned with respect to the matter with a view to reaching solutions
satisfactory to all such contracting parties.
The developed countries do not expect reciprocity for commitments
made by them in trade negotiations to reduce or remove tariffs and
other barriers to the trade of developing countries, i.e., the developed
countries do not expect the developing countries, in the course of
trade negotiations, to make contributions which are inconsistent with
their individual development, financial and trade needs. Developed
contracting parties shall therefore not seek, neither shall less-developed
contracting parties be required to make, concessions that are inconsistent
with the latter’s development, financial and trade needs.
Having regard to the special economic difficulties and the particular
development, financial and trade needs of the least-developed countries,
the developed countries shall exercise the utmost restraint in seeking
any concessions or contributions for commitments made by them to reduce
or remove tariffs and other barriers to the trade of such countries,
and the least-developed countries shall not be expected to make concessions
or contributions that are inconsistent with the recognition of their
particular situation and problems.
The concessions and contributions made and the obligations assumed
by developed and less-developed contracting parties under the provisions
of the General Agreement should promote the basic objectives of the
Agreement, including those embodied in the Preamble and in
Article XXXVI. Less-developed contracting parties expect that
their capacity to make contributions or negotiated concessions or
take other mutually agreed action under the provisions and procedures
of the General Agreement would improve with the progressive development
of their economies and improvement in their trade situation and they
would accordingly expect to participate more fully in the framework
of rights and obligations under the General Agreement.
Particular account shall be taken of the serious difficulty of the
least-developed countries in making concessions and contributions
in view of their special economic situation and their development,
financial and trade needs.
The contracting parties will collaborate in arrangements for review
of the operation of these provisions, bearing in mind the need for
individual and joint efforts by contracting parties to meet the development
needs of developing countries and the objectives of the General Agreement.
 The words “developing countries” as used in this text are to be understood to refer also to developing territories.
 It would remain open for the CONTRACTING PARTIES to consider on an ad hoc basis under the GATT provisions for joint action any proposals for differential and more favourable treatment not falling within the scope of this paragraph.
 As described in the Decision of the CONTRACTING PARTIES of 25 June 1971, relating to the establishment of “generalized, non-reciprocal and non-discriminatory preferences beneficial to the developing countries”.
 Nothing in these provisions shall affect the rights of contracting parties under the General Agreement.