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The WTO Enabling Clause and Positive Conditionality in the European Community's GSP Program

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  • Lorand Bartels
Abstract
Like virtually all developed countries, the European Community grants special trade preferences to developing countries by way of a generalized scheme of preferences, known as a GSP program. In addition, the EC operates a rewards-based system of 'special incentive arrangements', according to which developing countries may apply for further preferences if they can demonstrate compliance with specified environmental and labour standards. This article assesses this system of positive conditionality in light of WTO rules. It begins with an outline of the EC's GSP program and a discussion of the relevant governing instruments, in particular the 1971 GSP Decision and the 1979 Enabling Clause. It then discusses certain systemic issues, such as the implications of the fact that GSP preferences are granted on a voluntary basis, and the present legal status of the Enabling Clause. The article next addresses the substantive question whether the description of trade preferences as 'generalized, non-reciprocal and non-discriminatory' in the GSP Decision represents a condition of their legality under the Enabling Clause. The final section of this article analyses the meaning of these terms, with special reference to their drafting history, and presents a view on the legality of the EC's system of positive conditionality. Copyright Oxford University Press 2003, Oxford University Press.

Suggested Citation

  • Lorand Bartels, 2003. "The WTO Enabling Clause and Positive Conditionality in the European Community's GSP Program," Journal of International Economic Law, Oxford University Press, vol. 6(2), pages 507-532, June.
    • Handle: RePEc:oup:jieclw:v:6:y:2003:i:2:p:507-532
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    Cited by:

    1. Borchert, Ingo & Conconi, Paola & Di Ubaldo, Mattia & Herghelegiu, Cristina, 2021. "The Pursuit of Non-Trade Policy Objectives in EU Trade Policy," World Trade Review, Cambridge University Press, vol. 20(5), pages 623-647, December.
    2. Simon Pahle, 2015. "Bringing Workers’ Rights Back In? Propositions towards a Labour–Trade Linkage for the Global South," Development and Change, International Institute of Social Studies, vol. 46(1), pages 121-147, January.
    3. Ingo Borchert, 2009. "Trade diversion under selective preferential market access," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(4), pages 1390-1410, November.
    4. Jose Jaime Baena-Rojas & Susana Herrero-Olarte, 2020. "From Preferential Trade Arrangements to Free Trade Agreements: One of the Downturns of Cooperation in International Relations?," Social Sciences, MDPI, vol. 9(8), pages 1-17, August.
    5. Sèna Kimm Gnangnon, 2023. "Do unilateral trade preferences help reduce poverty in beneficiary countries?," International Journal of Economic Policy Studies, Springer, vol. 17(1), pages 249-288, February.
    6. Samuel Admassu, 2020. "The trade creation effects of Africa’s reciprocal vis-à-vis non-reciprocal trade agreements," Empirical Economics, Springer, vol. 59(6), pages 2717-2730, December.
    7. Gnangnon, Sèna Kimm, 2021. "Effect of the Utilization of Non-Reciprocal Trade Preferences offered by the QUAD on Economic Growth in Beneficiary Countries," EconStor Preprints 242848, ZBW - Leibniz Information Centre for Economics.
    8. Gnangnon, Sèna Kimm, 2021. "Do Unilateral Trade Preferences Help Reduce Poverty in Beneficiary Countries?," EconStor Preprints 247346, ZBW - Leibniz Information Centre for Economics.
    9. Gnangnon, Sèna Kimm, 2023. "Effects of the Utilization of Non-Reciprocal Trade Preferences Offered by QUAD Countries on Economic Growth in Beneficiary Countries," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 45(1), pages 33-68.
    10. Lee Yong-Shik, 2009. "Theoretical Basis and Regulatory Framework for Microtrade: Combining Volunteerism with International Trade towards Poverty Elimination," The Law and Development Review, De Gruyter, vol. 2(1), pages 367-399, December.
    11. Persson, Maria, 2013. "Trade Preferences from a Policy Perspective," Working Papers 2013:3, Lund University, Department of Economics.
    12. Joanna LANGILLE, 2020. "The trade–labour relationship in the light of the WTO Appellate Body's embrace of pluralism," International Labour Review, International Labour Organization, vol. 159(4), pages 569-589, December.
    13. Gnangnon, Sèna Kimm & Iyer, Harish, 2021. "Effect of Aid for Trade and Foreign Direct Investment Inflows on the Utilization of Unilateral Trade Preferences offered by the QUAD countries," EconStor Preprints 238211, ZBW - Leibniz Information Centre for Economics.
    14. S K Gnangnon, 2022. "Effect of the Utilisation of Unilateral Trade? Preferences on Foreign Direct Investment Flows to Beneficiary Countries," Economic Issues Journal Articles, Economic Issues, vol. 27(1), pages 39-73, March.

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