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TRIPS
The WTOs TRIPS Agreement is an attempt to narrow the gaps in the way these rights are protected
around the world, and to bring them under common international rules. It establishes minimum
levels of protection that each government has to give to the intellectual property of fellow WTO
members. In doing so, it strikes a balance between the long term benefits and possible short term
costs to society. Society benefits in the long term when intellectual property protection encourages
creation and invention, especially when the period of protection expires and the creations and
inventions enter the public domain. Governments are allowed to reduce any short term costs
through various exceptions, for example to tackle public health problems. And, when there are
trade disputes over intellectual property rights, the WTOs dispute settlement system is now
available.
how basic principles of the trading system and other international intellectual property
agreements should be applied
how to give adequate protection to intellectual property rights
how countries should enforce those rights adequately in their own territories
how to settle disputes on intellectual property between members of the WTO
special transitional arrangements during the period when the new system is being introduced.
Entailed significant changes for the protection of pharmaceutical products and processes
Made product patent protection binding on all member countries
Strengthened process patents.
Narrowly defined the conditions for establishing exceptions to patent rights
Limited the possibility of applying special modalities of compulsory licences to
pharmaceuticals
Way Forward
India should nurture a strong innovation base through a balanced system of recognition and
rewards
India will have to invest liberally to enhance the skills and knowledge base of scientists and
on understanding, interpreting and analysing the techno-legal business information
contained in IP documents and in drafting of IP documents
We must properly protect our inventions
TRIMS
This Agreement, negotiated during the Uruguay Round, applies only to measures that affect trade
in goods. Recognizing that certain investment measures can have trade-restrictive and distorting
effects, it states that no Member shall apply a measure that is prohibited by the provisions of GATT
Article III (national treatment) or Article XI (quantitative restrictions). Examples of inconsistent
measures, as spelled out in the Annex's Illustrative List, include local content or trade balancing
requirements. The Agreement contains transitional arrangements allowing Members to maintain
notified TRIMs for a limited time following the entry into force of the WTO (two years in the case of
developed country Members, five years for developing country Members, and seven years for least-
developed country Members). The Agreement also establishes a Committee on TRIMs to monitor the
operation and implementation of these commitments.
The Agreement requires all WTO Members to notify the TRIMs that are inconsistent with the
provisions of the Agreement, and to eliminate them after the expiry of the transition period
provided in the Agreement. Transition periods of two years in the case of developed
countries, five years in the case of developing countries and seven years in the case of
LDCs, from the date of entry into force of the Agreement (i.e. 1stJanuary 1995) are provided
in the Agreement.
The Agreement allows developing countries to deviate temporarily from its provisions on
balance of payments (BOP) grounds
TRIMS has been in force from 1995. Due to pressure from Developing countries investment was
dropped from the Doha negotiations.
GATS
The General Agreement on Trade in Services (GATS) is the first and only set of multilateral rules
governing international trade in services. Negotiated in the Uruguay Round, it was developed in
response to the huge growth of the services economy over the past 30 years and the greater
potential for trading services brought about by the communications revolution.
Features
A new round of services negotiations, termed GATS 2000 was launched in January 2000
o The guidelines for these negotiations had two mandates
Market Access
Rule Making
o The GATS 2000 negotiations were subsequently subsumed by the Doha
Development Agenda in 2001
India needs to
take advantage of the current Doha impasse to
at stake.
NAMA refers to all products not covered by the Agreement on Agriculture. In other words, in practice, it includes
manufacturing products, fuels and mining products, fish and fish products, and forestry products. They are sometimes
referred to as industrial products or manufactured goods.
Over the past years, NAMA products have accounted for almost 90% of the world merchandise
exports.
What did the Uruguay Round achieve on tariffs for NAMA products?
The Uruguay Round produced significant improvements in market access for NAMA products in the
developed country markets, as tariff averages were reduced from 6.3% to 3.8%. In the case of
developing countries, the most important contribution was made in the form of new tariff bindings.
Binding coverage for NAMA products in developing countries increased from 21% to 73%, which has
considerably increased the predictability of trade.
A tariff binding is a ceiling level above which a Member cannot apply a tariff. In other words, it is
the maximum tariff that may be applied by a Member. However, such rates are not cast in stone.
They may be increased or withdrawn subject to compensation being provided to the WTO Members
affected by such action.
The applied tariff is the tariff effectively applied. It can be lower than the bound rate and the
difference has been called water or the binding overhang.
Despite the significant improvements in market access for NAMA products that previous GATT
rounds and the Uruguay Round produced, tariffs continue to be an important barrier to world trade,
as tariff peaks, high tariffs, and tariff escalation remain.
In the first GATT rounds, tariffs were cut on a selective product-by-product basis through requests
and offers made between participants. However, subsequently contracting parties decided to use
formulas to cut tariffs across-the-board. For example, during the Kennedy Round (linear cut
formula) and in the Tokyo Round (Swiss formula) developed countries applied formulas, but with
several exceptions. In the Uruguay Round developing and developed participants negotiated their
tariff cuts using a variety of methods to reach a reduction average target comparable to that of the
Tokyo Round (1/3 cut).
Following intensive discussions, participants recognized the advantages of the formula approach. A
formula approach provides transparency (every Member will know how the other will reduce its
tariffs); efficiency (simpler process than request/offer approach), equity (tariff reduction depends
on rules rather then bargaining power); predictability (easy to foresee the results of the
negotiations).
Flexibility provisions for developing countries: According to the July 2004 Framework, developing
countries would enjoy longer implementation periods for their tariff reductions; and choose
between : 1) less than formula cuts for up to [10%] of their tariff lines representing up to [10%] of
their import value; or 2) not apply formula cuts, or leave unbound tariff lines, for up to [5%] of
their tariff lines representing up to [5%] of their import value.
Least Developed Countries: The least-developed country participants are not required to apply the
formula or participate in the sectorial approach, their contribution being to substantially increase
their binding coverage at levels in accordance with their needs and development.
Other S & D treatment: developing countries with a binding coverage of less than [35%] would be
exempt from formula reductions, but instead would contribute by binding their tariffs at an
average level that does not exceed the overall average of the post-Uruguay Round bound tariffs for
all developing countries.
Newly Acceded members: These members will also be provided with special tariff reduction
provisions.
There is no official definition but, in general terms, it refers to any measure other than a tariff
which protects domestic industry. Many non-tariff measures are based on a legitimate goal (such as
the protection of human health) and can be introduced in a WTO consistent manner. Agreements
such as the SPS and TBT aim at allowing governments to take due care of these legitimate goals
while minimizing the impact on trade and avoiding the temptation to use them as disguised
protectionism.
The negotiating group has been identifying, categorizing and examining the various NTBs. Many
NTBs are being resolved bilaterally, others are being addressed on a sectoral basis. Some are also
part of other existing multilateral NTB Agreements. Results on NTBs are also expected from other
Negotiating Groups such as Trade Facilitation. NTB outcomes will have multilateral effect and
therefore benefit all Members.
How will the Doha NAMA result improve the market access conditions for products of export
interest to developing countries?
Important to note that developing Members have a diverse export base. As a result of the formula,
tariff peaks, high tariffs and tariff escalation will diminish or disappear altogether. Consequently,
market access opportunities will open up both in the markets of developed Members, but also of
other developing Members. Such access will be further improved through the sectorial initiatives
which will be implemented on an MFN basis by those Members joining such initiatives. Addressing
NTBs in this Round is also expected to improve the access into the markets of Members. Market
access for LDC products has improved and is expected to improve both into developed as well as
developing country markets. In this regard, the Doha mandate calls on developed Members as well
as others in a position to do so to grant duty free and quota free access to LDC products on a date
to be determined. Additionally, through increased binding coverage and reduction of the binding
overhang, market access conditions will be made more secure.
India is a member of NAMA-11, a lobby of 11 developing countries within WTO with two main
objectives: