Which WTO agreement allows developing countries to temporarily restrict imports to safeguard their balance of payments or protect infant industries, subject to specific conditions and notifications?
- Agreement on Safeguards
- Agreement on Subsidies and Countervailing Measures
- General Agreement on Tariffs and Trade (GATT) Article XVIII
- Agreement on Import Licensing
Answer: General Agreement on Tariffs and Trade (GATT) Article XVIII
GATT Article XVIII recognizes the development needs of low-income countries. It permits temporary trade restrictions for balance-of-payments reasons (Section B) or to promote particular industries (Section C), provided measures are transparent, non-discriminatory, and phased out as conditions improve.