In Focus by The Hindu China drops ‘developing country’ tag at WTO: What it means for India
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Oct 26, 2025 Abhijit Das, an International trade and WTO expert, discusses China's surprising decision to drop its developing country status at the WTO. He explains how this move could reshape global trading dynamics, emphasizing its implications for India. The conversation reveals the complexities of WTO classifications, the benefits of special treatment for developing countries, and potential pressures for reform. Das also addresses the nature of plurilateral agreements and how they may impact India’s strategic interests amidst this shift.
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WTO Lets Members Self-Declare Status
- The WTO lets countries self-declare as developing with no fixed criteria.
- This allows selective use of special and differential treatment across agreements.
Why Special Treatment Exists
- Special and differential treatment gives developing countries looser obligations and longer transition periods.
- It can also include financial and technical assistance for implementation, e.g., under the Trade Facilitation Agreement.
China's Nuanced Opt-Out Declaration
- China says it remains a developing country but will not seek special treatment in current and future WTO negotiations.
- It will still benefit from special treatment in existing agreements and may use it in other forums like climate talks.