“Reciprocity Agreement”

There is no official WTO treaty or instrument called a Reciprocity Agreement.
However, the idea of reciprocity (mutual exchange of concessions) is deeply embedded in the WTO system, especially in trade negotiations. Lets go through what that actually means.

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???? 1. No such thing as a Reciprocity Agreement in WTO law

The WTOs legal framework consists mainly of:

• GATT 1994 (for goods)

• GATS (for services)

• TRIPS (for intellectual property)

• and a set of plurilateral agreements (like Government Procurement Agreement, GPA)

None of these are titled or formally structured as a Reciprocity Agreement.

So when policymakers or commentators say Reciprocity under the WTO, they mean a principle, not a document.

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???? 2. The Principle of Reciprocity in WTO

Reciprocity means that trade liberalization should involve mutual, balanced concessions among members.
It is one of the founding negotiation principles of the WTO (inherited from GATT 1947).

There are two key dimensions:

Type	Description
Negotiating reciprocity	Each country offers trade concessions (e.g. tariff cuts) in exchange for others doing the same a give-and-take balance in negotiations.
Applied reciprocity (response)	When a member feels another has violated WTO rules (e.g. subsidies, dumping), it can impose reciprocal countermeasures (authorized retaliation) under the Dispute Settlement Understanding (DSU).

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???? 3. Where Reciprocity Appears in WTO Practice

WTO Agreement	Role of Reciprocity
GATT 1994	Reciprocity is the foundation of tariff negotiations (Article XXVIII bis). Countries exchange tariff concessions on a reciprocal basis.
GATS	Market access in services is negotiated reciprocally; commitments are not automatically MFN.
Government Procurement Agreement (GPA)	Explicitly reciprocal only among signatories who agree to mutually open their procurement markets.
DSU (Dispute Settlement Understanding)	Allows reciprocal retaliation (e.g. suspension of concessions) if a member fails to comply with rulings.

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???? 4. Reciprocity vs. MFN (Most-Favored-Nation)

These two principles often get confused:

Principle	Meaning	Example
MFN (Most-Favored-Nation)	Non-discrimination: any concession to one WTO member must be given to all.	If the US lowers tariffs on EU steel, it must also lower them for all WTO members.
Reciprocity	Mutual exchange of concessions: I open if you open.	The US lowers tariffs on cars only if Japan lowers tariffs on beef.

So MFN = universal fairness,
Reciprocity = balanced exchange.

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???? 5. Exceptions and Asymmetry

WTO does not require strict one-for-one reciprocity.
There are deliberate non-reciprocal elements:

• Special and Differential Treatment (SD) allows developing and least-developed countries to:

  • give smaller concessions,

  • receive longer transition periods,

  • and still benefit from others commitments.

This reflects the idea of relative reciprocity, recognizing economic disparities.

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???? 6. Summary

Item	Description
Formal Reciprocity Agreement	? None exists under WTO
Concept origin	GATT 1947 trade negotiations based on mutual concessions
Where applied	GATT, GATS, GPA, DSU (retaliation)
Relation to MFN	Reciprocity = negotiation balance; MFN = non-discrimination
Exceptions	Special treatment for developing members (non-reciprocal benefits)