In News:

China has announced that it will continue to be classified as a developing country within the World Trade Organization (WTO) but will no longer seek Special and Differential Treatment (S&DT) in future negotiations.

About Special and Differential Treatment (S&DT):

• S&DT grants developing and least-developed countries (LDCs) flexibilities in implementing WTO obligations, including longer deadlines, preferential market access, safeguard measures, and technical assistance.
• Introduced under GATT in the 1960s and formalized in WTO agreements (1995) and the Doha Development Agenda (2001).
• LDCs receive additional automatic benefits; other countries self-declare their status, subject to challenge by WTO members.

Significance of China’s Decision:

• China, historically a major beneficiary of S&DT, will forego such benefits while retaining its developing country status.
• The move signals support for multilateral trade and contributes to WTO reform, addressing concerns raised by the United States and others over selective access to S&DT.
• It highlights the tension between economic capabilities and self-declared developing status, especially among major economies.

Implications:

• Encourages balanced WTO negotiations and strengthens the global trading system.
• Marks a step towards aligning development considerations with global economic realities without relinquishing China’s role in the Global South.