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Enabling clause
Plain-English definition, meaning and examples of Enabling clause in U.S. law.
In 1979, as part of the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), the enabling clause was adopted in order to permit trading preferences targeted at developing and least developed countries which would otherwise violate Article I of the GATT. Par…
What is Enabling clause?
In 1979, as part of the Tokyo Round of the General Agreement on Tariffs and Trade (GATT), the enabling clause was adopted in order to permit trading preferences targeted at developing and least developed countries which would otherwise violate Article I of the GATT. Paragraph 2(a) provides a legal basis for extending the Generalized System of Preferences (GSP) beyond the original 10 years. In practice it gave a permanent validity to the GSP. The enabling clause permits developed countries to discriminate between different categories of trading partners which would otherwise violate Article I of the GATT which stipulates that no GATT contracting party must be treated worse than any other. In effect, this allows developed countries to give preferential treatment to poorer countries, particularly to least developed countries. Paragraph 2(c) permits developing countries to enter into preferential trade agreements which do not meet the strict criteria laid out in GATT Article XXIV for regional free-trade agreements. It allows developing countries to enter into agreements which may be non-reciprocal, or cover a very limited range of products.
Why Enabling clause matters
Enabling clause appears in U.S. legal practice
across multiple practice areas. Knowing what it means — and when it applies — can
determine the outcome of motions, filings, and negotiations.
For non-lawyers, the value of looking up a precise definition is that legal terms often
carry meanings that differ from everyday usage; relying on the common meaning can lead to
costly missteps.
How Enabling clause works in practice
In practice, Enabling clause is invoked when parties, judges, or attorneys need to identify the legal status of an
issue, the rights of those involved, or the procedural step required next.
The definition shown above is sourced from
Wikipedia ,
which is widely cited in U.S. legal practice.
Because U.S. law is jurisdictionally layered — federal, state, and sometimes local — the
precise application of the term can vary by court, so check the controlling authority for
your specific case.
