Thread by @CoppetainPU

@fascinatorfun @_Truth_Matters @BBCRealityCheck @Jo_Coburn @BBCPolitics @ChrisMasonBBC It was negotiated among the Group of 77 developing countries under the auspices of UNCTAD. I'm guessing WTO members in this group apply it to each other under the "enabling clause"

unctad.org/en/pages/Press…

@fascinatorfun @_Truth_Matters @BBCRealityCheck @Jo_Coburn @BBCPolitics @ChrisMasonBBC Enabling clause: wto.org/english/docs_e…

@fascinatorfun @_Truth_Matters @BBCRealityCheck @Jo_Coburn @BBCPolitics @ChrisMasonBBC OK I'll take a step back

@fascinatorfun @_Truth_Matters @BBCRealityCheck @Jo_Coburn @BBCPolitics @ChrisMasonBBC In the 1970s and 80s, the group of developing countries known as the G-77 (basically covering most developing countries) agreed on a system of preferential trade among each other. They negotiated it under the auspices of the UN Conference on Trade and development (UNCTAD)

1/n

@fascinatorfun @_Truth_Matters @BBCRealityCheck @Jo_Coburn @BBCPolitics @ChrisMasonBBC (UNCTAD almost became a developing-country alternative to what was then GATT, which was seen as a rich-countries' club. You may have heard of "alternative world order". Some of that rivalry remain today, but by and large the WTO and UNCTAD work together.)

2/n

@fascinatorfun @_Truth_Matters @BBCRealityCheck @Jo_Coburn @BBCPolitics @ChrisMasonBBC The G-77/UNCTAD scheme is called the Generalised System of Trade Preferences Among Developing Countries. Because it's UN-based it includes WTO non-members, including (at that time) China, and (even now) North Korea.

Meanwhile there were developments in GATT/WTO

3/n

@fascinatorfun @_Truth_Matters @BBCRealityCheck @Jo_Coburn @BBCPolitics @ChrisMasonBBC The voice of developing countries became more influential in GATT and then WTO (which replaced GATT as an international organisation).

Already in 1979 GATT signatories ("CONTRACTING PARTIES" (all caps) = all contracting parties as a body!) had agreed on an "enabling clause"

4/n

@fascinatorfun @_Truth_Matters @BBCRealityCheck @Jo_Coburn @BBCPolitics @ChrisMasonBBC The "enabling clause" of 1979 allowed for rich-country preferences for developing countries (GSPs) and for preferential trade among developing countries, including the Generalised System of Trade Preferences among Developing countries (GTSP)

5/n

wto.org/english/docs_e…

@fascinatorfun @_Truth_Matters @BBCRealityCheck @Jo_Coburn @BBCPolitics @ChrisMasonBBC Trade deals between developing countries under the "enabling clause" can be between any two or more among them. The G-77/UNCTAD scheme (GTSP) is one.

Without the "enabling clause" these deals would have to meet the tougher conditions of GATT Art.24 (on FTAs/customs unions)

6/n

@fascinatorfun @_Truth_Matters @BBCRealityCheck @Jo_Coburn @BBCPolitics @ChrisMasonBBC Now, in 2019, those countries that are not WTO members (N.Korea) only have to think about the terms of the Generalised System of Trade Preferences among Developing Countries (GTSP).

7/8

@fascinatorfun @_Truth_Matters @BBCRealityCheck @Jo_Coburn @BBCPolitics @ChrisMasonBBC But those that are WTO members have to be "allowed" by WTO rules to have preferential trade: the "enabling clause". It's a rule that allows them to have preferences with each other, ignoring MFN non-discrimination, without the conditions of GATT Art24.

I hope it makes sense

8/8

@fascinatorfun @_Truth_Matters @BBCRealityCheck @Jo_Coburn @BBCPolitics @ChrisMasonBBC Correction: GSTP is GLOBAL System of Trade Preferences (not General)