CHAPTER-16 - WORLD TRADE ORGANISATION

CHAPTER-16 - WORLD TRADE ORGANISATION

Q.1 : Discuss the objectives and functions of WTO. (M.2011)
Ans. A) EME!E"#E O$ WTO :%
Afte& the 'econd Wo&(d Wa&) *an+ count&ies ,ot do-n to,ethe& to -o&. on -a+s and
*eans to /&o*ote inte&nationa( t&ade. The &esu(t -as si,nin, of !ene&a( A,&ee*ent
on Ta&i0s and T&ade (!ATT) b+ 21 count&ies in 1234. 5ndia -as one of the founde&
*e*be&s of !ATT.
!ATT -as c&eated to &educe ,(oba( de/&ession and to (ibe&a(ise and &e,u(ate the
-o&(d t&ade b+ &educin, ta&i0 ba&&ie&s. !ATT has been &e/(aced b+ WTO in 1226.
WTO is -ide& in sco/e as it &e,u(ates -o&(d t&ade in ,oods) as -e(( as in se&vices
inte((ectua( /&o/e&t+ &i,hts) and invest*ent. 5n 7anua&+ 2010) the *e*be&shi/ of
WTO -as 161 count&ies. 5ts &u(es and /o(icies a&e the outco*e of ne,otiations
a*on, WTO *e*be&s. Thus WTO is a *e*be& d&iven) consensus based
o&,anisation.
8. 95"#59A: O87E#T5;E' O$ WTO
1) T&ade Without Disc&i*ination :%
T&ade -ithout disc&i*ination th&ou,h the a//(ication of Most $avou&ed "ation (M$")
9&inci/(e. As /e& M$" c(ause) a *e*be& nation of WTO *ust acco&d (,ive) the sa*e
/&efe&entia( t&eat*ent to othe& *e*be& nations -hich it ,ives to an+ othe& *e*be&
nation.
2) aisin, The 'tanda&d Of :ivin, :%
aisin, the standa&d of (ivin, and inco*es and ensu&in, fu(( e*/(o+*ent of the
citi<ens of its *e*be& nations.
1) O/ti*u* =se Of Wo&(d>s esou&ces :%
Ensu&in, o/ti*u* use of -o&(d>s &esou&ces and) the&eb+) e?/andin, -o&(d
/&oduction and t&ade of ,oods as -e(( as se&vices.
3) 'ett(e*ent Of Dis/utes :%
'ett(e*ent of dis/utes a*on, *e*be&s th&ou,h consu(tation) conci(iation) and as a
(ast &eso&t th&ou,h dis/ute sett(e*ent /&ocedu&es.
6) !&o-th Of :ess Deve(o/ed #ount&ies (:D#s) :%
5t &eco,nises the need fo& /ositive e0o&ts desi,ned to ensu&e that deve(o/in,
count&ies es/ecia((+ the :D#s) secu&e a bette& sha&e of ,&o-th in inte&nationa( t&ade.
@) 9&otection Of Envi&on*ent
9&ese&vin, and /&otectin, the envi&on*ent of the -o&(d so as to beneAt a(( the
nations of the -o&(d.
4) En(a&,e*ent Of 9&oduction And T&ade
WTO ai*s to en(a&,e /&oduction and t&ade of ,oods as -e(( as se&vices.
B) E*/(o+*ent
WTO ai*s at ,ene&atin, fu(( e*/(o+*ent and inc&ease in e0ective de*and.
#) $="#T5O"' O$ WTO
WTO has fo((o-in, functions
1) 5*/(e*entation Of eduction 5n T&ade 8a&&ie&s
WTO sha(( chec. the i*/(e*entation of ta&i0 cuts and &eduction of non%ta&i0
*easu&es a,&eed u/on the *e*be& nations at the conc(usion of =&u,ua+ ound.
2) $o&u* $o& "e,otiation
WTO sha(( /&ovide the fo&u* of ne,otiations a*on, its *e*be&s conce&nin, thei&
*u(ti(ate&a( t&ade &e(ations.
1) 'ett(e*ent Of Dis/utes
WTO sha(( ad*iniste& the unde&standin, on &u(es and /&ocedu&es ,ove&nin, the
sett(e*ent of dis/utes.
3) Assistance To 5M$ And 58D
WTO sha(( co%o/e&ate -ith 5M$) 58D and its aC(iated a,encies to achieve ,&eate&
cohe&ence in ,(oba( econo*ic /o(ic+.
6) Ad*inist&ation Of A,&ee*ents
WTO sha(( (oo. afte& the ad*inist&ation of 22 a,&ee*ents (si,ned at the conc(usion
of =&u,ua+ ound in 1223)) /(us a nu*be& of othe& a,&ee*ents) ente&ed into afte&
=&u,ua+ ound.
@) E?a*ination Of T&ade 9o(icies
WTO sha(( &e,u(a&(+ e?a*ine the fo&ei,n t&ade /o(icies of *e*be& nations) to see
that such /o(icies a&e in (ine -ith WTODs ,uide(ines.
4) #onsu(tanc+ 'e&vices
WTO sha(( .ee/ a -atch on the deve(o/*ents in the -o&(d econo*+ and it /&ovides
consu(tanc+ se&vices to its *e*be& nations.
B) #o((ection Of $o&ei,n T&ade 5nfo&*ation
WTO sha(( co((ect info&*ation on i*/o&t % e?/o&t t&ade and on va&ious t&ade
*easu&es and othe& t&ade statistics of *e*be& nations.
Q.2 : E?/(ain the 'a(ient $eatu&es of WTO A,&ee*ents &eached on the basis
of =&u,ua+ ounds. O
E?/(ain the *ain WTO A,&ee*ents.
Ans. A) 'A:5E"T $EAT=E' O$ ==!=AE O="D 5 WTO A!EEME"T'
The *ain a,&ee*ents of WTO a&e
1) A,&ee*ent On A,&icu(tu&e (AOA) :%
The *ain objective is to inc&ease *a&.et o&ientation in a,&icu(tu&e t&ade. 5t /&ovides
fo& co**it*ents in the a&ea of *a&.et access) do*estic su//o&t and e?/o&t
co*/etition. The *e*be&s have to t&ansfo&* thei& non%ta&&if ba&&ie&s (i.e Fuotas
into eFuiva(ent ta&i0 *easu&es. The ta&i0s a&e to be &educed b+ 1@G -ithin @ +ea&s
in case of deve(o/ed count&ies and b+ 23G -ithin 10 +ea&s in case of deve(o/ed
count&ies. The (east deve(o/ed count&ies need not *a.e an+ co**it*ent fo&
&eduction.
2) A,&ee*ent On T&ade 5n Te?ti(es And #(othin, (Mu(ti % $ib&e A&&an,e*ent) :%
This /&ovides fo& /hasin, out the i*/o&t Fuotas on te?ti(es and c(othin, in fo&ce
unde& the Mu(ti % $ib&e A&&an,e*ent since 1243) ove& aH s/an of 10 +ea&s i.e. b+ 1st
7anua&+) 2006. With this a,&ee*ent Fuota on te?ti(e and c(othin, has no- been
abo(ished.
1) A,&ee*ent On Manufactu&ed !oods
The deve(o/ed count&ies a,&eed to &educe ta&i0s on *anufactu&ed ,oods othe& than
te?ti(es b+ 30G. The ta&i0s -ou(d no- be b&ou,ht do-n to an ave&a,e of 1.BG f&o*
ea&(ie& @.1G.
3) A,&ee*ent On T5Ms
An A,&ee*ent on T&ade e(ated 5nvest*ent Measu&es (T5Ms) ca((s fo& int&oducin,
nationa( t&eat*ent of fo&ei,n invest*ents and &e*ova( of Fuantitative &est&ictions. 5t
identiAes 6 invest*ent *easu&es -hich a&e inconsistent -ith the !ATT /&ovisions on
nationa( t&eat*ent and on ,ene&a( e(i*ination of Fua(itative &est&ictions.
6) A,&ee*ent On T59s
T&ade e(ated 5nte((ectua( 9&o/e&t+ i,hts (T59s) /e&tain to 9atents and #o/+&i,hts.
Whe&eas ea&(ie& on /&ocess /atents -e&e ,&anted to food) *edicines) d&u,s and
che*ica( /&oducts) the T59s A,&ee*ent no- /&ovides fo& ,&antin, /&oduct /atents
a(so in a(( these a&eas. 9&otection -i(( be avai(ab(e fo& 20 +ea&s fo& /atents and 60
+ea&s fo& co/+&i,hts.
@) !ene&a( A,&ee*ent On T&ade And 'e&vices (!AT')
$o& the A&st ti*e) t&ade in se&vices (i.e ban.in,) insu&ance) t&ave() *a&iti*e
t&ans/o&tation) *obi(it+ of (abou& etc. has been b&ou,ht -ithin the a*bit of
ne,otiations. The !ene&a( A,&ee*ent on T&ade in 'e&vices (!AT') /&ovides a
*u(ti(ate&a( f&a*e-o&. of /&inci/(es and se&vices -hich shou(d ,ove&n t&ade in
se&vices unde& conditions of t&ans/a&enc+ and /&o,&essive (ibe&a(isation.
4) Dis/utes 'ett(e*ent 8od+
'ett((e*ent of dis/utes unde& !ATT -as a neve& endin, /&ocess. The Dis/utes
'ett(e*ent 8od+ (D'8) set u/ unde& WTO see.s to /(u, the (oo/ho(es and /&ovide
secu&it+ and /&edictabi(it+ to the *u(ti(ate&a( t&adin, s+ste*. 5t has no- been *ade
*andato&+ to sett(e a dis/ute -ithin 1B *onths. The Andin,s of dis/utes sett(e*ent
/ane(s -i(( be Ana( and bindin, on a(( /a&ties conce&ned.
5n addition to the above) the =&u,ua+ ound a(so &eached a,&ee*ents on the
unde&standin, and i*/(ications of ce&tain a&tic(es of !ATT 1234) vi<) /&e%shi/*ent
ins/ection) &u(es of o&i,in) i*/o&t (icensin,) anti % du*/in, *easu&es and
counte&vai(in, duties) safe,ua&ds) subsidies etc.
Q.1: E?/(ain T59s A,&ee*ent and i*/(ication of T59s A,&ee*ent
of WTO on *e*be& nations. O
W&ite note on T59s A,&ee*ent. (M. 2011)
Ans. A. AGREEMENT ON TRADE RELATED INTELLECTUAL PROPERTY RIGHTS
(TRIPs) :-
5nte((ectua( /&o/e&t+ i,hts see. to /&otect the inte&est of invento&s and deve(o/e&s
of /&oducts and /&ocesses f&o* bein, co/ied b+ othe&s. The *ain featu&es of T59s
a,&ee*ents :%
Mini*u* 'tanda&ds of /&otection to be /&ovided b+ each *e*be&.
Do*estic /&ocedu&es *ust be /ut in /(ace fo& enfo&ce*ent of 59s b+ each
*e*be& nation.
Dis/ute 'ett(e*ent bet-een WTO *e*be&s.
A,&ee*ent on T59s cove& the fo((o-in, a&eas #o/+&i,ht and &e(ated &i,hts) t&ade
*a&.s inc(udin, se&vices *a&.s) indust&ia( desi,ns) ,eo,&a/hica( indications)
/atents) (a+out desi,ns of inte,&ated ci&cuits and /&otection of undisc(osed
info&*ation o& t&ade sec&ets.
WTO>s T59s a,&ee*ent is an atte*/t to na&&o- do-n the ,a/s in the -a+ these
&i,hts a&e /&otected a&ound the -o&(d. Dis/utes ove& T59s a,&ee*ent a&e to be
,ove&ned b+ WTO dis/ute sett(e*ent /&ocedu&es. T59s a,&ee*ent desi&es to
&educe disto&tions and i*/edi*ents to inte&nationa( t&ade -hi(e /&otectin,
inte((ectua( /&o/e&t+ &i,hts.
B. POSITIVE IMPLICATIONS OF TRIPs AGREEMENT :-
1) P!"n!s :-
=nde& A,&ee*ent on T59s) /&otection is ,iven to /atents) co/+&i,hts) (a+out
desi,ns etc. $o& E,.:% -hen /atented d&u,s ,et e?c(usive *a&.etin, &i,hts fo&
ce&tain /e&iod) and if so*e othe& A&* -ants > to use that /&oducts na*e) the+ have
to ta.e /e&*ission f&o* /atent ho(de&. 9e&*ission *a+ be ,iven on(+ afte& si,nin,
a,&ee*ent fo& &o+a(t+ o& fees.
T59s a,&ee*ent has a(so ,iven a boost to esea&ch and Deve(o/*ent in the Ae(d of
/ha&*aceutica(s) en,inee&in,) e(ect&onics etc. Thus a,&ee*ent on T59s have
beneAted the *e*be& nations of WTO.
#) P$%&'( H"&!) :-
The Doha #onfe&ence he(d in Doha) Qata& in "ov. 2001) &eco,nised the need to
/&otect /ub(ic hea(th and to /&ovide *edicines to a((. Ie&e the deve(o/in, count&ies
need not sou&ce thei& essentia( *edicines at hi,h cost f&o* M"#s f&o* deve(o/ed
count&ies) -hich have /atents. #ount&ies (i.e 5ndia) #hina and 8&a<i( -ou(d beneAt
as the+ /ossess the &esou&ces and techno(o,+ to *anufactu&e essentia( *edicines
and e?/o&t these -ithout havin, to secu&e co*/u(so&+ (icensin, f&o* /atent
ho(de&s.
*) G"+,-.)'( In/'(!'+n S!!$s (!5'):%
WTO a(so /&ovides !5' fo& ce&tain ite*s. Once a count&+ ,ets !5') the A&*s f&o*
on(+ that count&+ can use the ,ene&ic b&and na*e. $o& E,. :% 5ndia has obtained !5'
fo& Da&jee(in, Tea and a(so fo& othe& /&oducts. This *eans) on(+ 5ndian A&*s can use
Da&jee(in, Tea b&and) -hich sho-s Da&jee(in, Tea /&oduced in 5ndia is uniFue.
B) NEGATIVE IMPLICATIONS OF TRIPs AGREEMENT
1) F0+$-s D"0"&+."/ N!'+ns
A,&ee*ent on T59s favou&s deve(o/ed count&ies as unde& T59s /&otection .is ,iven
to 59s such as /atents) t&ade *a&.s) (a+out desi,ns etc. Thus it favou&s deve(o/ed
nations as the+ have (a&,e nu*be& of /atents.
#) A,&icu(tu&e
5n A,&icu(tu&e /atentin, of /(ant va&ieties is done th&ou,h T59s. This *a+ have
se&ious i*/(ications fo& deve(o/in, count&ies. M"#s a&e in a /osition to deve(o/
a(*ost a(( ne- va&ieties -ith the he(/ of thei& Anancia( &esou&ces and e?/e&tise. This
*a+ t&ansfe& a(( ,ains in the hands of M"#s.
*) Mic&o % O&,anis*s
esea&ch in Mic&o%o&,anis*s is c(ose(+ (in.ed -ith the deve(o/*ent of a,&icu(tu&e)
/ha&*aceutica(s and indust&ia( biotechno(o,+. 9atentin, of Mic&o%o&,anis*s a,ain
-i(( beneAt M"#s.
Q.3 : E?/(ain the i*/(ications of T5Ms A,&ee*ent of WTO on *e*be& nations.
O
W&ite note on T5Ms. (M.2011)
Ans. A) A!EEME"T O" TADE E:ATED 5";E'TME"T MEA'=E' (T5Ms)
A,&ee*ent on T&ade e(ated 5nvest*ent Measu&es (T5Ms) inc(ude int&oduction of
*easu&es to be ado/ted b+ *e*be& count&ies to t&eat fo&ei,n invest*ents on /a&
-ith do*estic invest*ents and a(so &e*ova( of Fuantitative &est&ictions on i*/o&ts.
5t is an atte*/t b+ a nationa( ,ove&n*ent to /(ace conditions on fo&ei,n co*/an+
that -ishes to o/e&ate -ithin its bo&de&s.
#e&tain invest*ent *easu&es that disc&i*inate a,ainst fo&ei,n invest*ent -e&e to
be -ithd&a-n such as
) Ob(i,ation on fo&ei,n investo&s to use (oca( in/uts.
%) To /&oduce fo& e?/o&ts as a condition to obtain i*/o&ted in/uts.
() To *eet e?/o&t ob(i,ation.
/) E*/(o+*ent of (oca( /eo/(e.
") Techno(o,+ T&ansfe& &eFui&e*ents.
1) =se of s/eciAc /&oduction techno(o,+.
,) :oca( eFuit+ &eFui&e*ent.
)) #ont&o( on use of i*/o&ted in/uts.
The *e*be& nations of WTO inc(udin, 5ndia have -ithd&a-n the above *easu&es to
encou&a,e t&ade &e(ated invest*ent.
T5Ms a&e of t-o t+/es:%
9ositive T5Ms :%
These inc(ude invest*ent incentive to *ove to the count&+ in Fuestion o& to *ove
to a s/eciAc /(ace -ithin that count&+.
"e,ative T5Ms :J
These inc(ude (oca( eFuit+ &eFui&e*ents) (icensin, &eFui&e*ents) fo&ei,n e?chan,e
&est&ictions) t&ansfe& of techno(o,+ &eFui&e*ents) t&ade ba(ancin, &eFui&e*ents)
i*/o&t % e?/o&t &eFui&e*ents etc.
8) 9O'5T5;E 5M9A#T O$ T5Ms :%
T5Ms a,&ee*ent have /ositive i*/act on deve(o/in, count&ies as fo&ei,n
invest*ent is t&eated at /a& -ith do*estic invest*ent. $o& E,. T5Ms a,&ee*ent -i((
encou&a,e fo&ei,n A&*s to invest in 5ndia. This -i(( ,ene&ate a ,ood a*ount of
co*/etition. 5n o&de& to su&vive) 5ndian A&*s -i(( have to be /&oactive -ith
co*/etitive st&ate,ies) -hich not on(+ -ou(d i*/&ove thei& /e&fo&*ance) but a(so
-ou(d /&ovide bette& se&vice to custo*e&s.
#) "E!AT5;E 5M9A#T O$ T5Ms :%
Deve(o/in, count&ies (inc(udin, 5ndia) have -ithd&a-n a nu*be& of *easu&es that
&est&icts fo&ei,n invest*ents. T5Ms a,&ee*ent a(so favou&s deve(o/ed nations.
M"#s f&o* deve(o/ed count&ies -ith thei& hu,e Anancia( and techno(o,ica(
&esou&ces can dis/(ace 5ndian indust&+ and /(a+ a do*inant &o(e. 8esides fo&ei,n
A&*s -i(( be f&ee to &e*it /&oAts) dividends) etc. to /a&ent co*/an+. This -i(( cause
fo&ei,n e?chan,e d&ain on deve(o/in, nations.
Q. 6 : Discuss the i*/(ications of !AT' A,&ee*ent of WTO on *e*be& nations.
O
W&ite note on !AT'.
Ans. A) !E"EA: A!EEME"T O" TADE 5" 'E;5#E' (!AT')
$o& the A&st ti*e) in =&u,ua+ ound) t&ade in se&vices (i.e ban.in,) insu&ance)
t&ave() t&ans/o&t etc. -as b&ou,ht unde& ne,otiations. The !ene&a( A,&ee*ent on
T&ade in 'e&vices (!AT') is the A&st *u(ti(ate&a( a,&ee*ent on t&ade in se&vices. A((
*e*be& nations a&e bound to o/en thei& se&vices secto& to do*estic /&ivate and
fo&ei,n co*/etition.
!AT' has t-o *ajo& &eFui&e*ents
1) To ,&ant the 'tatus of Most $avou&ed "ation (M$") to othe& *e*be& nations
on non%disc&i*inate basis -ith &e,a&d to t&ade in se&vices and
#) Maintenance of t&ans/a&enc+. The&e is a(so co**it*ent fo& /&o,&essive
(ibe&a(isation.
The incu(sion of 'e&vices in a,&ee*ent sho-s thei& ,&o-in, i*/o&tance in -o&(d
econo*+. =nde& !AT') 5ndia has *ade co**it*ent fo& 11 activities -he&e
fo&ei,ne&s a&e a((o-ed to ente&. The choice of activities have been based on nationa(
beneAt (i.e i*/act on ca/ita( inKo-s) techno(o,+) e*/(o+*ent etc.
5*/&ove*ents in the Fua(it+ of se&vice that -i(( e*e&,e f&o* (ibe&a(isation and
inc&eased co*/etition -i(( cont&ibute to inc&ease in eCcienc+) /&oductivit+)
consu*e& -e(fa&e and ,&o-th in deve(o/in, count&ies. "o doubt the&e is a -ide
di0e&ence in the Fua(it+ of se&vices &ende&ed bet-een the deve(o/ed and
deve(o/in, count&ies. The inc(usion of t&ade in se&vice secto& is (i.e(+ to be *o&e
beneAcia( to deve(o/ed count&ies than to deve(o/in, count&ies.
8. 9O'5T5;E 5M9A#T O$ !AT' :%
!AT' /&ovide an o//o&tunit+ not on(+ to avai( se&vices f&o* othe& *e*be& count&ies
but a(so to inc&ease the Fua(it+ of its o-n se&vices due to co*/etition. $o&ei,n A&*s
a&e a((o-ed in nu*be& of se&vice secto&s. Th&ou,h joint ventu&es o& /a&tne&shi/
fo&ei,n A&*s *a+ ente& in 5ndia. This -i(( enab(e 5ndian A&*s to e?/and and
dive&sif+ thei& se&vice activities -ith /&ofessiona( e?/e&tise and fo&ei,n su//o&t.
5n *an+ deve(o/in, count&ies) secto&s (i.e t&ave( and tou&is*) hote(s) &etai( t&adin,)
ban.in,) insu&ance) education and co**unication a&e o/en fo& inte&nationa(
co*/etition.
#. "E!AT5;E 5M9A#T O$ !AT' :%
5n !AT' a,&ee*ent *e*be& nations have to o/en u/ the se&vices secto& fo& fo&ei,n
co*/anies. Deve(o/in, count&ies inc(udin, 5ndia have o/ened u/ the se&vices
secto& in &es/ect of ban.in,) insu&ance) co**unication) te(eco*) t&ans/o&t etc. to
fo&ei,n A&*s. Deve(o/in, count&ies *a+ And it diCcu(t to co*/ete -ith ,iant
fo&ei,n A&*s due to (ac. of &esou&ces and /&ofessiona( s.i((s.
Q.@: E?/(ain the i*/act of WTO A,&ee*ents on 5ndian Econo*+.
O
Ana(+se the i*/act of WTO a,&ee*ents on 5ndia. What a&e its 9&os and #oinsL
Ans. A) 5M9A#T O$ WTO A!EEME"T' O" 5"D5A" E#O"OME :%
The si,nin, of WTO a,&ee*ents -i(( have fa& &eachin, e0ects not on(+ on 5ndiaDs
fo&ei,n t&ade but a(so on its inte&na( econo*+. A(thou,h the u(ti*ate ,oa( of WTO is
to f&ee -o&(d t&ade in the inte&est of a(( nations of the -o&(d) +et in &ea(it+ the WTO
a,&ee*ents has beneAtted the deve(o/ed nations *o&e as co*/a&ed to deve(o/in,
ones. The i*/act of WTO on 5ndiaDs econo*+ is sta,ed as fo((o-s :%
I. P+s'!'0" I2.(! 5 B"n"3!s 5 A/0n!,"s 5 G'ns 1-+2 WTO :-
The 9ositive i*/act of WTO on 5ndia>s econo*+ can be vie-ed f&o* the fo((o-in,
/oints:%
1) In(-"s" In E4.+-! E-n'n,s :-
Esti*ates *ade b+ Wo&(d 8an.) O&,anisation fo& Econo*ic #o%o/e&ation and
Deve(o/*ent (OE#D) and the !ATT 'ec&eta&iat) sho-s that the inco*e e0ects of
the i*/(e*entation of =&u,ua+ ound /ac.a,e -i(( be an inc&ease in t&aded
*e&chandise ,oods. 5t is e?/ected that 5ndiaDs sha&e in -o&(d e?/o&ts -ou(d
i*/&ove.
#) A,-'($&!$-& E4.+-!s :-
eduction of t&ade ba&&ie&s and do*estic subsidies in a,&icu(tu&e is (i.e(+ to &aise
inte&nationa( /&ices of a,&icu(tu&a( /&oducts. 5ndia ho/es to beneAt f&o* this in fo&*
of hi,he& e?/o&t ea&nin,s f&o* a,&icu(tu&e. This see*s to be /ossib(e because a((
*ajo& a,&icu(tu&e deve(o/*ent /&o,&a**es in 5ndia -i(( be e?e*/ted f&o* the
/&ovisions of WTO A,&ee*ent.
*) E4.+-! O1 T"4!'&"s An/ C&+!)'n, :-
With the /hasin, out of M$A (Mu(ti % $ib&e A&&an,e*ent)) e?/o&ts of te?ti(es and
c(othin, -i(( inc&ease and this -i(( be beneAcia( fo& 5ndia. The deve(o/ed count&ies
de*anded a 16 +ea& /e&iod of /hasin, out of M$A) the deve(o/in, count&ies)
inc(udin, 5ndia) insisted that it be done in 10 +ea&s. The =&u,ua+ ound acce/ted
the de*and of the (atte&. 8ut the /hasin, out 'chedu(e favou&s the deve(o/ed
count&ies because a *ajo& /o&tion of Fuota &e,i*e is ,oin, to be &e*oved on(+ in
the tenth +ea&) i.e. 2006. The &e*ova( of Fuotas -i(( beneAt not on(+ 5ndia but a(so
eve&+ othe& count&+>.
5) M$&!'&!"-& R$&"s An/ D's('.&'n"s :-
The =&u,ua+ ound A,&ee*ent has st&en,thened Mu(ti(ate&a( &u(es and disci/(ines.
The *ost i*/o&tant of these &e(ate to anti % du*/in,) subsidies and counte&vai(in,
*easu&es) safe,ua&ds and dis/utes sett(e*ent. This is (i.e(+ to ensu&e ,&eate&
secu&it+ and /&edictabi(it+ of the inte&nationa( t&adin, s+ste* and thus c&eate a
*o&e favou&ab(e envi&on*ent fo& 5ndia in the "e- Wo&(d Econo*ic O&de&.
6) G-+7!) T+ S"-0'("s E4.+-!s :-
=nde& !AT' a,&ee*ent) *e*be& nations have (ibe&a(ised se&vice secto&. 5ndia -ou(d
beneAt f&o* this a,&ee*ent. $o& E,:% 5ndiaDs se&vices e?/o&ts have inc&eased f&o*
about 6 bi((ion =' M in 1226 to 2@ bi((ion =' M in 2002%10. 'oft-a&e se&vices
accounted fo& about 36G of se&vice e?/o&ts.
6) F+-"',n In0"s!2"n! :-
5ndia has -ithd&a-n a nu*be& of *easu&es a,ainst fo&ei,n invest*ent) as e& the
co**it*ents *ade to WTO. As a &esu(t of this) fo&ei,n invest*ent and $D5 has
inc&eased ove& the +ea&s. A nu*be& of initiatives has been ta.en to att&act $D5 in
5ndia bet-een 2000 and 2002. 5n 2002%10) the net $D5 in 5ndia -as =' M 1B.B bi((ion.
II. "e,ative 5*/act N 9&ob(e*s 5 Disadvanta,es Of WTO A,&ee*ents on
5ndian Econo*+ :%
1) TRIPs :%
The A,&ee*ent on T59s at =&u,ua+ ound -ei,hts heavi(+ in favou& of
Mu(tinationa( #o&/o&ations and deve(o/ed count&ies as the+ ho(d a ve&+ (a&,e
nu*be& of /atents. A,&ee*ent on T59s -i(( -o&. a,ainst 5ndia in seve&a( -a+s and
-i(( (ead to &/ono/o(+ of /atent ho(din, M"#s. As a *e*be& of WTO) 5ndia has to
co*/(+ -ith standa&ds of T59s.
The ne,ative i*/act of a,&ee*ent on T59s on 5ndian econo*+ can be stated as
fo((o-s
a) 9ha&*aceutica( 'ecto& :%
=nde& the 9atents Act) 1240) on(+ /&ocess /atents -e&e ,&anted to che*ica(s) d&u,s
and *edicines. This *eans an 5ndian /ha&*aceutica( co*/an+ on(+ needed to
deve(o/ and /atent a /&ocess to /&oduce and se(( that d&u,. This /&oved beneAcia(
to 5ndian /ha&*aceutica( co*/anies as the+ -e&e in a /osition to se(( Fua(it+
*edicines at (o- /&ices both in do*estic as -e(( as in inte&nationa( *a&.ets.
Io-eve&) unde& the a,&ee*ent on T59s) /&oduct /atents needs to be ,&anted. This
-i(( beneAt the M"#s and it is fea&ed that the+ -i(( inc&ease the /&ices of *edicines
heavi(+) .ee/in, the* out of &each of /oo&. A,ain *an+ 5ndian /ha&*aceutica(
co*/anies *a+ be c(osed do-n o& ta.en ove& b+ (a&,e M"#s.
b) A,&icu(tu&e :%
The A,&ee*ent on T59s e?tends to a,&icu(tu&e th&ou,h the /atentin, of /(ant
va&ieties. This *a+ have se&ious i*/(ications fo& 5ndian a,&icu(tu&e. 9atentin, of
/(ant va&ieties *a+ t&ansfe& a(( ,ains in the hands of M"#s -ho -i(( be in a /osition
to deve(o/ a(*ost a(( ne- va&ieties -ith the he(/ of thei& hu,e Anancia( &esou&ces
and e?/e&tise.
c) Mic&oo&,anis*s :%
The A,&ee*ent on T59s a(so e?tends to Mic&oo&,anis*s as -e((. esea&ch in *ic&o %
o&,anis*s is c(ose(+ (in.ed -ith the deve(o/*ent of a,&icu(tu&e) /ha&*aceutica(s
and indust&ia( biotechno(o,+. 9atentin, of *ic&o % o&,anis*s -i(( a,ain beneAt (a&,e
M"#s as the+ a(&ead+ have /atents in seve&a( a&eas and -i(( acFui&e *o&e at a *uch
faste& &ate.
#) T5Ms :%
A,&ee*ent on T5Ms /&ovide fo& t&eat*ent of fo&ei,n invest*ent on /a& -ith
do*estic invest*ent. This A,&ee*ent too -ei,hts in favou& of deve(o/ed count&ies.
The&e a&e no /&ovisions in A,&ee*ent to fo&*u(ate inte&nationa( &u(es fo& cont&o((in,
&est&ictive business /&actices of fo&ei,n investo&s. 7n case of deve(o/in, count&ies
(i.e 5ndia) co*/(+in, -ith A,&ee*ent on T5Ms -ou(d *ean ,ivin, u/ an+ /(an o&
st&ate,+ of se(f % &e(iant ,&o-th based on (oca((+ avai(ab(e techno(o,+ and &esou&ces.
*) GATS :-
One of the *ain featu&es of =&u,ua+ ound -as the inc(usion of t&ade in se&vices in
ne,otiations. This too -i(( ,o in favou& of deve(o/ed count&ies. =nde& !AT'
a,&ee*ents) the *e*be& nations have to o/enu/ se&vices secto& fo& fo&ei,n
co*/anies. The deve(o/in, count&ies inc(udin, 5ndia have o/ened u/ se&vices
secto& in &es/ect of ban.in,) insu&ance) co**unication) te(eco*) t&ans/o&t etc. to
fo&ei,n A&*s. The do*estic A&*s of deve(o/in, count&ies *a+ And it diCcu(t to
co*/ete -ith ,iant fo&ei,n A&*s due to (ac. of &esou&ces O /&ofessiona( s.i((s.
5) "on % Ta&i0 8a&&ie&s :%
'eve&a( count&ies have /ut u/ t&ade ba&&ie&s and non % ta&i0 ba&&ie&s fo((o-in, the
fo&*ation of WTO. This has a0ected the e?/o&ts f&o* deve(o/in, count&ies. The
=nion #o**e&ce Minist&+ has identiAed 11 di0e&ent non % ta&i0 ba&&ie&s /ut u/ b+
1@ count&ies a,ainst 5ndia. $o& e,. M$A (Mu(ti % Ab&e a&&an,e*ents) /ut b+ ='A and
Eu&o/ean =nion is a *ajo& ba&&ie& fo& 5ndian te?ti(e e?/o&ts.
6) A,&ee*ent On A,&icu(tu&e (AOA)
The AOA is biased in favou& of deve(o/ed count&ies. The issue of food secu&it+ to
deve(o/in, count&ies is not add&essed adeFuate(+ in AOA. The e?istence of ,(oba(
su&/(uses of food ,&ains does not i*/(+ that the /oo& count&ies can a0o&d to bu+.
The de/endence on necessa&+ ite* (i.e food,&ains -ou(d adve&se(+ a0ect the
8a(ance of 9a+*ent /osition.
6) 5neFua(it+ Within The 't&uctu&e Of WTO
The&e is ineFua(it+ -ithin the st&uctu&e of WTO because the a,&ee*ents and
a*end*ents a&e in favou& of deve(o/ed count&ies. The *e*be& count&ies have to
acce/t a(( WTO a,&ee*ents i&&es/ective of thei& (eve( of econo*ic deve(o/*ent.
8) :D# E?/o&ts
The @th Ministe&ia( #onfe&ence too. /(ace at Ion, Pon, in Dece*be& 2006. 5n this
#onfe&ence) it -as a,&eed that a(( deve(o/ed count&+ *e*be&s and a(( deve(o/in,
count&ies dec(a&in, the*se(ves in a /osition to do so) -i(( /&ovide dut+ % f&ee and
Fuota % f&ee *a&.et access on a (astin, basis to a(( /&oducts o&i,inatin, f&o* a((
:east Deve(o/ed #ount&ies (:D#). 5ndia has a,&eed to this. "o- 5ndia>s e?/o&t -i((
have to co*/ete -ith chea/ :D# e?/o&ts inte&nationa((+. "ot on(+ this) the chea/
:D# e?/o&ts -i(( co*e to 5ndian *a&.et and co*/ete -ith do*estica((+ /&oduced
,oods.
5ndia -i(( face seve&a( /&ob(e*s in the /&ocess of co*/(+in, -ith WTO a,&ee*ents)
but it can a(so &ea/ beneAts b+ ta.in, advanta,e of chan,in, inte&nationa( business
envi&on*ent. $o& this it needs to deve(o/ and concent&ate on its a&eas of co&e
co*/etencies.