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ENABLING CLAUSE

Formally, the "Decision on Differential and More Favorable Treatment, Reciprocity, and Fuller Participation of Developing Countries" that was negotiated during the Tokyo Round as Part I of a new Framework Agreement on International Trade. The Enabling Clause legalized the extension by developed contracting parties of GATT of preferences to developing and least developed countries, notwithstanding the most-favored-nation treatment required under GATT Article I. In addition, it allows that developing countries can mutually reduce or eliminate the tariff duties of products imported from other developing countries.

Derived from: http://usinfo.state.gov/products/pubs/trade/glossdi.htm#d