Implications of Wto in India

IMPLICATIONS
OF WTO IN
INDIA
WTO
•The World Trade Organization (WTO) is the only global
international organization dealing with the rules of
trade between nations.
•At its heart are the WTO agreements, negotiated and

signed by the bulk of the world’s trading nations and
ratified in their parliaments.
•The goal is to help producers of goods and services,

exporters, and importers conduct their business.
IMPLICATIONS FOR INDIA
 India does not stand to gain much by shouting for agriculture
reforms in developed countries because the overall tariff is
lower in those countries.
 India will have to tart major reforms in agriculture sector in
India to make Agriculture globally competitive.
 Same way it is questionable if India will be major beneficiary in
dismantling of quotas, which were available under MFA for
market access in US and some EU countries.
 It is likely that China, Germany, North African countries, Mexico
and such others may reap benefit in textiles and Clothing areas
unless India embarks upon major reforms in modernization and
up gradation of textile sector including apparels.
AGRICULTURAL SECTOR
 The provisions of W.T.O offered ample
opportunities to India to expand its export
market.
 International price of agricultural commodities
have since then plummeted, because of which
domestic price turned higher than
international price, which made India an
attractive market for import of most
agricultural commodities.
 This situation resulted in a wide spread decline
in agricultural export and had also pressure on
domestic value.
CONTD…
 The impact of W.T.O on agriculture was
severely felt by India as cheap imports have
frequently hit the Indian market, causing
shock waves among the agriculture
producers.
 The changes in agricultural exports reveal
that during pre W.T.O period the increase
was significant and could not be sustained in
the post W.T.O period whereas imports
remarkable than post W.T.O period and the
rising export trend rose steadily.
PHARMA SECTOR
 In Pharma-sector there is need for major
investments in R &D and mergers and
restructuring of companies to make them
world class to take advantage. India has
already amended patent Act and both product
and Process are now patented in India.
 However, the large number of patents going
off in USA recently, gives the Indian Drug
companies windfall opportunities, if tapped
intelligently. Some companies in India have
organized themselves for this.
TELECOM SECTOR
 The General Agreement on Trade in Services (the
“GATS”) was one of the most important achievements
of the Uruguay Round of negotiations that led to the
creation of the World Trade Organization (the
“WTO”). In 2001, international trade in services
constituted approximately $1.450 trillion which
represents almost 20% of total global trade in goods
and services combined.
 Telecommunication services are important not just
because annual telecommunications revenues run into
hundreds of billions of dollars a year and a significant
proportion of global GDP but also because they enable
the supply of other types of services as well as the
production of goods.
PROBLEMS FACING INDIA IN WTO
AND
ITS IMPLEMENTATIONS
 Predominance of developed nations in
negotiations extracting more benefits from
developing and least developed countries.
 Resource and skill limitations of smaller
countries to understand and negotiate under
rules of various agreements under WTO.
 Incompatibility of developed and developing
countries resource sizes thereby causing
distortions in implementing various
decisions.
CONTD…
 Non-tariff barriers being created by developed
nations.
 Dismantling of MFA (Multi Fiber Agreement) and
its likely impact on countries like India.
 Under TRIPS question of high cost of
Technology transfer, Bio Diversity protection,
protection of Traditional Knowledge and Folk
arts, protection of Bio Diversities and
geographical Indications of origin, for example
Basmati, Mysore Dosa or Champagne. The
protection has been given so far in wines and
spirits that suit US and European countries.
WHAT INDIA SHOULD DO?
 The most important things for India to address are
speed up internal reforms in building up world-
class infrastructure like roads, ports and
electricity supply. India should also focus on
original knowledge generation in important fields
like Pharmaceutical molecules, textiles, IT high
end products, processed food, installation of cold
chain and agricultural logistics.
 India's ranking in recent Global Competitiveness
report is not very encouraging due to
infrastructure problems, poor governance, poor
legal system and poor market access provided by
India.
CONTD…
 Our tariffs are still high compared to Developed
countries and there will be pressure to reduce them
further and faster.
 India must improve legal and administrative
infrastructure, improve trade facilitation through
cutting down bureaucracy and delays and further ease
its financial markets.
 Corruption will also have to be checked by bringing in
fast remedial public grievance system, legal system
and information dissemination by using e-governance.
 The petroleum sector has to be boosted to tap crude
oil and gas resources within Indian boundaries and
entering into multinational contracts to source oil
reserves.
TRIMS
 The Agreement on Trade Related Investment
Measures (TRIMS) applies only to measures that
affect trade in goods.
 It recognizes that certain measures can restrict
and distort trade, and states that no member
shall apply any measure that discriminates
against foreigners or foreign products.
 It outlaws investment measures that lead to
restrictions in quantities.
 It also discourages measures that limit a
company’s imports or sets targets for a company
to export.
TRIPS
 The Agreement on Trade Related of the Intellectual
Property Rights (TRIPS) of the WTO, which came
into effect on 1 January 1995, is to date the most
comprehensive multilateral agreement on
intellectual property.
 WTO and TRIPS set the minimum level of protection
and enforcement provision, every member country
must provide to a right holder.
 All the countries that are a part of GATT/WTO have
to comply with the TRIPS text.
 Under Article 65.2 of TRIPS, India as a developing
country has fallen under the WTO commitments
after 1 Jan 2000.
PATENTS
 Patents are one of the oldest forms of
intellectual property protection and the aim
of a patent system is to encourage economic
and technological development by rewarding
intellectual creativity.
 Patent under the Act is grant from the
Government to inventor, for a limited period
of time, the exclusive right to make, use
exercise and vend invention.
 The purpose of patent is to provide a form of
protection for technological advances.
CONTD…
 Patents are intended for breakthroughs in
technology, but they are also intended for
small technological increments.
 The advantage of taking out a patent are
that the owner of a patent can exclude all
others in the territory covered by the patent
from making, using, selling or importing the
invention.
 When the patent rights expire, the
technology becomes public property, and the
public is free to use it for their own good.
THANK YOU
PRESENTED BY-
APURVA PANDE
DIVISHA BHAGAT
HEMLATA BHAGTANI

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IMPLICATIONS

•At its heart are the WTO agreements, negotiated and

•The goal is to help producers of goods and services,

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