{"id":160662,"date":"2022-01-11T22:07:11","date_gmt":"2022-01-11T16:37:11","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=160662"},"modified":"2022-01-12T16:02:50","modified_gmt":"2022-01-12T10:32:50","slug":"at-wto-china-a-developing-country-why-many-nations-are-raising-concerns","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/at-wto-china-a-developing-country-why-many-nations-are-raising-concerns\/","title":{"rendered":"At WTO, China a developing country-Why many nations are raising concerns"},"content":{"rendered":"\n

\u00a0<\/span><\/p>\n

News<\/span><\/b>: <\/span>China\u2019s status as a \u2018developing country\u2019 at the World Trade Organization (WTO) has become a contentious issue.<\/span>\u00a0<\/span><\/p>\n

A number of countries have raised concerns over the upper middle-income nation deriving benefits reserved for developing countries under WTO norms.<\/span>
\n<\/span><\/p>\n

Moreover, concerns<\/strong> have been raised over the \u2018least developed country\u2019 (LDC)<\/strong> status, with Bangladesh potentially losing this tag after surpassing India in terms of GDP per capita.<\/span> \u00a0<\/span><\/p>\n\n\n\n
Must Read<\/strong>: India questions China’s developing country status on per capita basis<\/span><\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
What are the benefits associated with developing country status?<\/span><\/b>\u00a0<\/span><\/h5>\n

Certain WTO agreements give developing countries special rights through \u2018special and differential treatment\u2019 (S&DT).<\/span>\u00a0<\/span><\/p>\n

More on this <\/span>here<\/strong><\/a><\/span>.<\/span>\u00a0<\/span><\/p>\n

It<\/span> also allows other countries to offer preferential treatment.<\/span> \u00a0<\/span><\/p>\n

How is a \u2018developing country\u2019 status decided?<\/span><\/b>\u00a0<\/span><\/h5>\n

WTO has not defined \u2018developed\u2019 and \u2018developing\u2019 countries and therefore member countries are free to announce whether they are \u2018developed\u2019 or \u2018developing\u2019.<\/span> \u00a0<\/span><\/p>\n

Which all countries have objected to China\u2019s developing country status?<\/span><\/b>\u00a0<\/span><\/h5>\n

Please refer <\/span>here<\/strong><\/span><\/span><\/a>.<\/span>\u00a0<\/span><\/p>\n

Why are so many countries objecting to China\u2019s developing country status?<\/span><\/b>\u00a0<\/span><\/p>\n

China\u2019s per capita income has come to a level of <\/span>upper middle-income country,<\/span><\/b> according to the <\/span>World Bank\u2019s classification<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n

Apart from this it has been alleged of unfair trade practices such as preferential treatment for state enterprises, data restrictions and inadequate enforcement of intellectual property rights.<\/span>\u00a0<\/span><\/p>\n

How has China responded? What would be the impact of China losing this status?<\/span><\/b>\u00a0<\/span><\/h5>\n

China has in the past reacted quite negatively to such views by the countries, and has also maintained that it is the \u201cworld\u2019s largest developing economy\u201d<\/span>.<\/span>\u00a0<\/span><\/p>\n

For more<\/strong>: Read <\/span>here<\/b><\/a><\/span>.<\/span>\u00a0<\/span><\/p>\n

However, it has <\/span>recently indicated that it may be willing to forego many benefits<\/span><\/b> of being a developing country.<\/span>\u00a0<\/span><\/p>\n

For example<\/strong>: It may forego all exemptions available to developing countries in negotiations aimed at cutting fishing subsidies to curb overfishing.<\/span>\u00a0<\/span><\/p>\n

If China in future decides to forego the developing country status<\/span>, <\/span><\/b>It would impact negotiations in future agreements.<\/span>\u00a0<\/span><\/p>\n

What are LDCs, and what are the benefits of LDC classification?<\/span><\/b>\u00a0<\/span><\/h5>\n

WTO recognises <\/span>Least developed countries (<\/b><\/span><\/span>LDCs) <\/span><\/b>relying on a classification by the UN. It is based on a criterion that is reviewed every three years. <\/span>\u00a0<\/span><\/p>\n

LDCs are often exempted from certain provisions of WTO pacts. <\/span>\u00a0<\/span><\/p>\n

Bangladesh<\/span><\/b>, currently classified as an LDC, receives zero duty, zero quota access for almost all exports to the EU.<\/span>\u00a0<\/span><\/p>\n

It is, however, set to <\/span>lose its LDC status in 2026<\/span><\/b> as its <\/span>per capita GDP has risen sharply, surpassing that of India in FY21.<\/span><\/b> \u00a0<\/span><\/p>\n

Source: <\/span><\/b>This post is based on the article \u201c<\/strong><\/span>At WTO, China a developing country-Why many nations are raising concerns\u201d\u00a0<\/span><\/b>published in\u00a0The Indian express\u00a0on<\/span>\u00a011th\u00a0Jan 2022<\/span><\/b>.\u00a0<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0 News: China\u2019s status as a \u2018developing country\u2019 at the World Trade Organization (WTO) has become a contentious issue.\u00a0 A number of countries have raised concerns over the upper middle-income nation deriving benefits reserved for developing countries under WTO norms. Moreover, concerns have been raised over the \u2018least developed country\u2019 (LDC) status, with Bangladesh potentially… Continue reading At WTO, China a developing country-Why many nations are raising concerns<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,10500],"class_list":["post-160662","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704787255},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/160662","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=160662"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/160662\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=160662"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=160662"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=160662"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}