The World Trade Organization (WTO) is an intergovernmental organization that governs international trade between member countries. The Annex 2 WTO agreement is a special provision designed to assist developing countries in participating in global trade.
The Annex 2 WTO agreement was adopted in 1995 and is a part of the General Agreement on Tariffs and Trade (GATT) that created the WTO. It is a list of products and services that are exempted from the WTO`s trade liberalization rules for developing countries. The agreement gives developing countries the opportunity to protect their domestic industries and improve their economic performance.
The Annex 2 WTO agreement covers 43 products, including textiles, clothing, leather, footwear, and agricultural products. The agreement allows developing countries to apply higher tariffs and other non-tariff barriers to these products without violating WTO rules. This gives them a degree of protection against the influx of cheaper products from developed countries that would otherwise flood their markets.
In addition to the 43 products covered by the Annex 2 WTO agreement, developing countries are also allowed to add additional products to the list. This provides them with a level of flexibility to protect their domestic industries and maintain their economic growth.
The Annex 2 WTO agreement is an important tool for developing countries as it helps to create a more level playing field in the global economy. The agreement recognizes that developing countries face unique challenges in participating in international trade and provides them with a framework to address these challenges.
Despite its benefits, the Annex 2 WTO agreement has faced criticism from developed countries who argue that it gives developing countries an unfair advantage. However, proponents of the agreement argue that it helps to promote economic growth and development in developing countries, which ultimately benefits the global economy.
In conclusion, the Annex 2 WTO agreement is an important provision that supports the economic growth of developing countries by providing them with a degree of protection against cheaper imported products. The agreement promotes a more level playing field in international trade and recognizes the unique challenges faced by developing countries. Ultimately, the Annex 2 WTO agreement helps to promote economic development and growth, which benefits both developing and developed countries alike.
