 TREATMENT OF DEVELOPING COUNTRIES  191  
 
 
 
 
 DIFFERENTIAL AND MORE FAVOURABLE TREATMENT  
 RECIPROCITY AND FULLER PARTICIPATION  
 OF DEVELOPING COUNTRIES  
 
 
 Decision of 28 November 1979  
 (L/4903)  
 
 Following negotiations within the framework of the Multilateral Trade Negotiations, 
the CONTRACTING PARTIES decide  as follows:  
 
1. Notwithstanding the provisions of Article I of the General Agreement, contracting 
parties may accord differential and more favourable treatment to developing countries1, 
without according such treatment to other contracting parties.  
 
2. The provisions of paragraph 1 apply to the following:2 
 
(a)Preferential tariff treatment accorded by developed contracting parties to products 
originating in developing countries in accordance with the Generalized System 
of Preferences,3 
 
(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 con ditions which may be prescribed by the CONTRACTING 
PARTIES, for the mutual reduction or elimination of non -tariff measures, on 
products imported from one another;  
 
(d)Special treatment on the least developed among the developing countries in the context 
of any general or specific measures in favour of developing countries.  
 
3. Any differential and more favourable treatment provided under this clause:  
_______________  
 1The words "developing countries" as used in this text are to be understood to refer als o to developing 
territories.  
 2It 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 para graph.  
 3As 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"  (BISD 18S/24).  192 TOKYO ROUND AGREEMENTS   
 
(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 ot her 
restrictions to trade on a most- favoured- nation basis;  
 
(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, financi al and trade needs of developing 
countries.  
 
4. Any contracting party taking action to introduce an arrangement pursuant to 
paragraphs 1, 2 and 3 above or subsequently taking action to introduce modification or 
withdrawal of the differential and more favou rable treatment so provided shall:1 
 
(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 a ll contracting parties concerned with respect to the matter 
with a view to reaching solutions satisfactory to all such contracting parties.  
 
5. 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 develop ment, 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.  
 
6. 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 commi tments 
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 s ituation and 
problems.   
_______________  
 1Nothing in these provisions shall affect the rights of contracting parties under the General Agreement.   TREATMENT OF DEVELOPING COUNTRIES  193  
 
7. 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 accor dingly expect to participate more fully in the framework of 
rights and obligations under the General Agreement.  
 
8. Particular account shall be taken of the serious difficulty of the least -developed 
countries in making concessions and contributions in vie w of their special economic 
situation and their development, financial and trade needs.  
 
9. 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.  
 