Enabling Clause

Enabling Clause and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Enabling Clause: Pan of the 1979 Framework Agreement providing a legal basis in GATT for industrial countries to grant tariff preferences to LDCs. The enabling clause amounted to a permanent waiver of the GA TT most favored-nation provision for the Generalized System of Preferences (GSP ). LDCs sought agreement on the enabling clause as a key objective in the Tokyo Round, but were obliged to accept inclusion of language in the agreement that also recognized the graduationprinciple.

Enabling Clause in International Trade

Meaning of Enabling Clause, according to the Dictionary of International Trade (Global Negotiator): The decision on Differential and More Favourable treatment, Reciprocity and Fuller Participation of Developing Countries made at the GATT Tokyo Round, permits developed counties to extend preferences to developing countries without violating the most-favoured-nation treatment agreements.

Enabling Clause

This section provides an overview of enabling clause within the legal context of Most-Favoured Nation Treatment (MFN) in international economic law, with coverage of Non-Discrimination in Trade of Goods and Services (Principles).

Resources

Further Reading

• Christian Häberli, “Enabling Clause,” Elgar Encyclopedia of International Economic Law, Cheltenham Glos (United Kingdom), Northampton, MA (United States)