Potential Challenges and Prospects in Exploiting LDC Waiver in Service Sector: The Case of Ethiopia
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Date
2017-04
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Addis Ababa University
Abstract
LDC service waiver is a specific preferential treatment of LDCs in service trade. The main
objective of this preferential treatment scheme is to boost the participation of LDCs in
international trade in service. To this effect, the waiver decision waived the MFN obligations
of GATS to the extent necessary to permit WTO members to provide preferential treatment to
services and services suppliers of LDCs without according the same treatment to like services
and service suppliers of all other members. All LDCs whether member to WTO or not, such as
Ethiopia, are similarly made beneficiaries.
Taking in account, the indispensable importance of international trade in service for poverty
eradication and over all development of Ethiopia on one hand; and the limited capacity of the
country to compete in international trade in service because of many internal and external
factors on the other hand, the service waiver preferential treatments scheme incorporated
many potential opportunities for Ethiopia. However, there are some internal and external
potential challenges that the country should seriously concern with for the effective
exploitation the preferential treatment.
Thus, Ethiopia should devise appropriate strategy to solve these problems or at least
minimize their impacts and to fully exploit the prospects under the service waiver preferential
treatment.
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Keywords
- LDC service waiver, LDCs, preferential treatments