1

INDIA AND WTO

PRESENTED BY-
A1AY.G
1MS10MBA04
Under the guidance of Coordinated by
Dr. P.V.Raveendra
ProIessor,
Department oI MBA,
MSRIT, Bangalore
Mrs. Mahalaxmi.A
Assistant ProIessor,
Department oI MBA,
MSRIT, Bangalore







Contents
O @@
O Jor|d @rade Crgan|sat|on
urpose
|m
rob|ems faced by Ind|a
O J@C and Ind|an gr|cu|ture
O Ind|a's Comm|tment
O Imp||cat|on of J@C greements
O Jat Ind|a Jants
O Impact of Serv|ces In Ind|a
O Importance of Serv|ce Sector to
te Lconomy
O Impact of I|nanc|a| Serv|ces
O Impact of Dump|ng on Ind|an
Industry
O |b||ograpy








@@
W enera| greement on @ar|ffs and @rade
W @@ was formed |n 1947 and |asted unt|| 1994 was
rep|aced by te Jor|d @rade Crgan|zat|on
W Cn 1 Ianuary 1948 te agreement was s|gned by
countr|es
W @@ e|d a tota| of 8 rounds
Introduct|on
W @e enera| greement on @ar|ffs and
@rade (@@% w|c was s|gned |n 1947 |s a
mu|t||atera| agreement regu|at|ng trade among
about 1S0 countr|es ccord|ng to |ts preamb|e te
purpose of te @@ |s te substant|a| reduct|on
of tar|ffs and oter trade barr|ers and te
e||m|nat|on of preferences on a rec|proca| and
mutua||y advantageous bas|s
W @e @@ funct|oned fn as an organ|zat|on
conduct|ng e|gt rounds of ta|ks address|ng var|ous
trade |ssues and reso|v|ng |nternat|ona| trade


4


d|sputes @e Uruguay kound w|c was
comp|eted on December 1S 199 after seven years
of negot|at|ons resu|ted |n an agreement among
117 countr|es (|nc|ud|ng te US% to reduce trade
barr|ers and to create more compreens|ve and
enforceab|e wor|d trade ru|es @e agreement
com|ng out of t|s round te I|na| ct Lmbody|ng
te kesu|ts of te Uruguay kound of Mu|t||atera|
@rade Negot|at|ons was s|gned |n pr|| 1994 @e
Uruguay kound agreement was approved and
|mp|emented by te US Congress |n December
1994 and went |nto effect on Ianuary 1 199S
Jor|d@radeLawnet conta|ns J@C negot|at|ng
|story mater|a|s
W @|s agreement a|so created te Jor|d @rade
Crgan|zat|on (J@C% w|c came |nto be|ng on
Ianuary 1 199S @e J@C |mp|ements te
agreement prov|des a forum for negot|at|ng
add|t|ona| reduct|ons of trade barr|ers and for
sett||ng po||cy d|sputes and enforces trade ru|es
@e J@C |aunced te n|nt round of mu|t||atera|
trade negot|at|ons under te Doa Deve|opment
genda (DD or Doa kound% |n 001 Doa
Deve|opment genda Negot|at|ons
Imp|ementat|on and Deve|opment prov|des


S


|nformat|on about te Doa kound and ||nks to
texts tat ave been generated by te negot|at|ons
W @@ and J@C mater|a|s are ava||ab|e |n te
oodson Law L|brary and |n erk|ns


JCkLD @kDL CkNI2@ICN

1he W1C was born ouL of Lhe Ceneral AgreemenL on
1arlffs and 1rade (CA11)
eadquarLers Ceneva SwlLzerland
ormaLlon 1 !anuary 1993
,embershlp 133 member counLrles
udgeL 163 mllllon uSu (Approx)
L ls an lnLernaLlonal organlzaLlon deslgned Lo
supervlse and llberallze lnLernaLlonal Lrade
1he W1C has 133 members whlch represenLs more
Lhan 93 of LoLal world Lrade
W1C cooperaLe closely wlLh 2 oLher componenL ,
and World ank


1he World 1rade CrganlzaLlon (W1C) ls Lhe only
global lnLernaLlonal organlzaLlon deallng wlLh Lhe
rules of Lrade beLween naLlons AL lLs hearL are Lhe
W1C agreemenLs negoLlaLed and slgned by Lhe bulk





of Lhe world's Lradlng naLlons and raLlfled ln Lhelr
parllamenLs 1he goal ls Lo help producers of goods
and servlces exporLers and lmporLers conducL Lhelr
buslness

UkCSL

W W1C ls Lo ensure LhaL global Lrade commences
smooLhly freely and predlcLably
W 1ransparency ln Lrade pollcles
W Work as an economlc research and analysls cenLre
Jat |s te Jor|d @rade Crgan|zat|on?
W S|mp|y put Lhe World 1rade CrganlzaLlon (W1C)
deals wlLh Lhe rules of Lrade beLween naLlons aL a
global or nearglobal level uL Lhere ls more Lo lL
Lhan LhaL
Lx|stence of J@C (@S%
W W1C (CA1S) came lnLo exlsLence as a resulL of Lhe
uruguay 8ound of negoLlaLlons and enLered lnLo
force on 1 !anuary 1993 wlLh Lhe esLabllshmenL of
Lhe W1C
W 1he mulLllaLeral legal lnsLrumenLs resulLlng from Lhe
uruguay 8ound were LreaLed as a slngle underLaklng


7


W ndla also slgned all Lhe W1C agreemenLs under Lhe
slngle underLaklng rule and W1C (CA1S) ls a parL of
Lhls whole package

Serv|ces covered exc|uded under J@C
(@S%
W W1C (CA1S) covers all lnLernaLlonally Lraded
servlces wlLh Lwo excepLlons
W Servlces provlded Lo Lhe publlc ln Lhe exerclse of
governmenLal auLhorlLy and

W n Lhe alr LransporL secLor Lrafflc rlghLs and all
servlces dlrecLly relaLed Lo Lhe exerclse of Lrafflc
rlghLs

8anglng from archlLecLure Lo volcemall
LelecommunlcaLlons and Lo space LransporL servlces
are Lhe largesL and mosL dynamlc componenL of
boLh developed and developlng counLry economles
mporLanL ln Lhelr own rlghL Lhey also serve as
cruclal lnpuLs lnLo Lhe producLlon of mosL goods
1helr lncluslon ln Lhe uruguay 8ound of Lrade
negoLlaLlons led Lo Lhe enera| greement on @rade


8


|n Serv|ces (@S% Slnce !anuary 2000 Lhey have
become Lhe sub[ecL of mulLllaLeral Lrade
negoLlaLlons




9


IM
To create economic peace and stability in the
world through a multilateral system based on
consenting member states, that have ratiIied the
rules oI the WTO in their individual countries as
Well.
India facing Problems in WTO & its Implementation

W Predominance oI developed nations in negotiations
extracting more beneIits Irom developing and least
developed countries
W Resource and skill limitations oI smaller countries to
understand and negotiate under rules oI various
agreements under WTO
W Incompatibility oI developed and developing
countries resource sizes thereby causing distortions in
implementing various decisions
W Non-tariII barriers being created by developed
nations.
W Poor implementation oI Doha Development Agenda



10


J@C ND INDIN kICUL@UkL
Introduct|on
O AfLer over 7 years of negoLlaLlons Lhe uruguay
8ound mulLllaLeral Lrade negoLlaLlons were
concluded on uecember 1993 and were
formally raLlfled ln Aprll 1994 aL ,arrakesh
,orocco
O 1he W1C AgreemenL on gr|cu|ture was one of
Lhe ma|n agreements whlch were negoLlaLed
durlng Lhe uruguay 8ound
O @e J@C greement on gr|cu|ture conta|ns
prov|s|ons |n broad areas of agr|cu|ture
O Market access
O Domest|c support
O Lxport subs|d|es


MkkL@ CCLSS
W 1hls lncludes LarlfflcaLlon Larlff reducLlon and access
opporLunlLles
W 1arlfflcaLlon means LhaL all nonLarlff barrlers such
as

W 1hls lncludes LarlfflcaLlon Larlff reducLlon and access
opporLunlLles


11


W 1arlfflcaLlon means LhaL all nonLarlff barrlers such
as
1 quoLas
2 varlable levles
3 mlnlmum lmporL prlce
4 dlscreLlonary llcenslng
3 sLaLe Lradlng measures

DCMLS@IC SUCk@
W or domesLlc supporL pollcles sub[ecL Lo reducLlon
commlLmenLs Lhe LoLal supporL glven ln 198688
measured by Lhe 1oLal AggregaLe ,easure of
SupporL (LoLal A,S)




1


LkCk@ SUSIDILS
W 1he AgreemenL conLalns provlslons regardlng
members commlLmenL Lo reduce LxporL Subsldles
W ueveloped counLrles are requlred Lo reduce Lhelr
exporL subsldy expendlLure by 36
W or developlng counLrles Lhe percenLage cuLs are
24
INDI'S CCMMI@MLN@
W As ndla was malnLalnlng CuanLlLaLlve 8esLrlcLlons
due Lo balance of paymenLs reasons (whlch ls a
CA11 conslsLenL measure) lL dld noL have Lo
underLake any commlLmenLs ln regard Lo markeL
access
W ndla does noL provlde any producL speclflc supporL
oLher Lhan markeL prlce supporL
W n ndla exporLers of agrlculLural commodlLles do
noL geL any dlrecL subsldy
W ndlrecL subsldles avallable Lo Lhem are ln Lhe form
of
W exempLlon of exporL proflL from lncome Lax under
secLlon 80 of Lhe ncome 1ax


1


W Subsldles on cosL of frelghL on exporL shlpmenLs of
cerLaln producLs llke frulLs vegeLables and
florlculLural producLs

W ndla ls commlLLed Lo phased llberallzaLlon of Lrade
and lnvesLmenL and progresslve lnLegraLlon of lLs
domesLlc economy wlLh Lhe world economy osL
2003 ndla ls llkely Lo be Lhe largesL free markeL
economy ln Lhe world purely on accounL of her 1
bllllon populaLlons ndla's progress ln fulfllllng her
commlLmenL Lo Lhe W1C can be explalned as
follows
1 CuanLlLaLlve 8esLrlcLlons ndla has been
malnLalnlng C8's on lmporLs on o grounds and
had commlLLed Lo Lhe W1C LhaL Lhe C8's wlll be
compleLely phased ouL by 2003 owever Lhe
unlLed SLaLes had flled a case ln Lhe W1C dlspuLe
seLLlemenL body agalnsL Lhese C8's ln ,ay 1997
1he uS had ruled agalnsL ndla and had found LhaL
ndla's C8's on lmporLs were noL [usLlfled on o
grounds 1he uS recommended LhaL ndla should
brlng lLs lmporLs reglme ln conformlLy wlLh lLs
commlLmenL under Lhe W1C agreemenL
Accordlngly quanLlLaLlve resLrlcLlons on all lmporLs
were wlLhdrawn on Aprll 2001


14


1rade 8elaLed nLellecLual roperLy 8lghLs
(18s) 1he agreemenL on 18S lays down Lhe
mlnlmum sLandards of proLecLlon Lo be adopLed by
Lhe parLles ln respecL of
l opyrlghLs
ll 1rademarks
lll Ceographlcal lndlcaLlons
lv ndusLrlal deslgns
v aLenLs
vl LayouL deslgns of lnLegraLed clrculLs and
vll roLecLlon of Lrade secreLs and lLs enforcemenL
1he developlng counLrles were glven a LranslLlon
perlod of 3 yrs Lo lmplemenL Lhe 18s agreemenL
1hose counLrles who don'L glve producL paLenLs ln
cerLaln areas were glven Lhe faclllLles Lo delay Lhe
provlslons of producL paLenLs for an addlLlonal
perlod of 3yrs on Lhe condlLlon LhaL Lhese counLrles
wlll provlde excluslve markeLlng rlghLs for producLs
whlch obLaln paLenLs afLer 1sL !an 1993 ndla
cleared Lhe paLenLs (AmendmenLs) AcL 1999 ln
,arch 1999 Lo provlde for excluslve markeLlng
rlghLs
ommlLmenLs relaLed Lo lndusLrlal deslgn and
layouL deslgn of lnLegraLed clrculLs under W1C
agreemenLs Lhe CovernmenL of ndla has
commlLLed Lo proLecL new lndusLrlal deslgn and lay


1S


puL deslgn of lnLegraLed clrculL 1he blll relaLed wlLh
lndusLrlal deslgn and layouL deslgn was cleared by
parllamenL ln uecember 1999 and blll relaLed wlLh
lndusLrlal deslgn has been lnLroduced ln 8a[ya
Sabha on 20Lh uec 1999
4 opyrlghLs and relaLed rlghLs n case of rlghLs of
performers producers of phonograms and
broadcasLlng organlzaLlons Lhe agreemenL requlres
compllance wlLh Lhe provlslon of Lhe erne
onvenLlon ompuLer programs are Lo be
proLecLed as llLerary works 1he Lerm of proLecLlon
for copyrlghLs and rlghLs of performers and
producers of phonograms ls 30yrs n case of
broadcasLlng organlzaLlons Lhe Lerm ls 20yrs Slnce
ndla ls a slgnaLory Lo Lhe erne convenLlon ndla
has Lo comply wlLh lLs provlslons Accordlngly Lhe
opyrlghL AcL 1937 was amended ln 1994 Lo be ln
Lune wlLh Lhe requlremenLs of Lhe 18s
agreemenL A blll Lo lncrease Lhe Lerm of
performers rlghLs Lo 30yrs was passed by
parllamenL ln uecember 1999
S 1rademarks A blll Lo amend Lhe 1rade and
,erchandlse ,arks AcL 1938 was passed by Lhe
parllamenL ln uecember 1999 whlch amongsL oLher
Lhlngs provldes proLecLlon Lo Servlce ,arks


1


Ceographlc ndlcaLlons 1he CA11 agreemenL
conLalns a general obllgaLlon LhaL parLles shall
provlde Lhe legal means for lnLeresLed parLles Lo
prevenL Lhe use of any means ln Lhe deslgnaLlon or
presenLaLlon of a good LhaL lndlcaLes or suggesLs
LhaL Lhe good ln quesLlons orlglnaLes ln a
geographlcal area oLher Lhan Lhe Lrue place of orlgln
of Lhe good An AcL on geographlcal lndlcaLlon was
passed by Lhe parllamenL ln uecember 1999
7 1rade 8elaLed nvesLmenL ,easures (18,s) 1he
18,s agreemenL provldes a LranslLlon perlod of
3yrs Lo developlng counLrles le upLo uecember
1999 1he developlng counLrles have demanded for
addlLlonal LranslLlon perlod of 3yrs le upLo 2004 A
declslon by Lhe Ceneral ouncll of Lhe W1C ls
awalLed
8 ndusLrlal deslgns Accordlng Lo Lhe agreemenLs
lndependenLly creaLed new lndusLrlal deslgns or
orlglnal deslgns are Lo be proLecLed 1he ndlan
ueslgn AcL 1911 was reworked Lo sulL Lo Lhe
requlremenLs of Lhe agreemenL and a blll ln Lhls
regard was cleared by Lhe 8a[ya Sabha ln uecember


17


1999
9 8educLlon of 1arlff ndla has commlLLed Lo W1C
Lo reduce Larlff on nonagrlculLural goods 1he
governmenL has underLaken Lhe phased reducLlon of
Larlff over Lhe perlod ,arch 1993 Lo 2003 n case of
LexLlles Lhe reducLlon of Larlff wlll be achleved over
a perlod of 10yrs buL ndla reserves Lhe rlghL Lo
reverL back duLles Lo 1990 level lf cerLaln condlLlons
are noL fulfllled accordlng Lo agreemenL
10 ommlLmenL under CA1S under Lhe Ceneral
AgreemenL on 1rade ln Servlces (CA1S) ndla has
made commlLmenL Lo W1C ln 33 acLlvlLles 1he
orelgn Servlce provlders wlll be allowed Lo enLer
lnLo Lhese acLlvlLles

Conc|us|on L ls clear from Lhe above polnLs LhaL
ndla has fulfllled some of Lhe ma[or commlLmenLs
made Lo W1C 1he governmenL of ndla ln order Lo
face Lhe challenges from W1C has Lo acceleraLe Lhe
process of reforms ln agrlculLure lndusLry and
servlce secLor Lo make Lhem compeLlLlve and Lo Lake
advanLage of globallzaLlon


18



Imp||cat|ons of J@C agreement for Ind|an
economy
mpllcaLlons of W1C agreemenL for ndlan
economy are as follows
1 8educLlon ln usLom uuLles and LxporL Subsldles
ndla has agreed Lo reduce cusLom duLles by 30
over a perlod of 6yrs Accordlngly Lhe unlon budgeL
200001 broughL down Lhe peak raLe of baslc cusLom
duLy Lo 33 along wlLh raLlonallzaLlon of LoLal
number of slabs ln cusLom duLy raLes Lo four le 33
23 13 and 3 aslc cusLom duLy reducLlon was Lo
be made on lLems such as raw maLerlals
lnLermedlaLes and caplLal goods wlLh Lhe excepLlon
of agrlculLural producLs peLroleum producLs
ferLlllzers and nonferrous meLals llke zlnc and
copper 1he W1C agreemenL en[olns upon lLs
members Lo remove all exporL subsldles owever
counLrles wlLh per caplLa lncome of less Lhan $1000
and less Lhan 323/ share ln Lhe world Lrade for
producLs are exempLed from Lhe removal of
subsldles 1he economlc survey 199899 reporLed


19


LhaL lLems such as rlce Lea splces lron ore leaLher
manufacLurer gems and [eweler had a share of
more Lhan 323/ and Lhe share of Lhese lLems ln Lhe
LoLal exporLs of ndla for Lhe year 1996 was 228
whlch means 77 of ndla's exporLs are noL affecLed
by Lhe clause on removal of subsldles
1rade 8elaLed nLellecLual roperLy 8lghLs under
Lhe agreemenL on 18s paLenLs are made avallable
for boLh producL and process lnvenLlons ln Lhe fleld
of lndusLrlal Lechnology 1he lndusLrlal agrlculLural
and Lhe bloLechnology secLors are covered under
Lhe paLenLs provlslon 1he paLenL reglme ls feared Lo
affecL Lhe drugs and Lhe pharmaceuLlcal lndusLry ln
ndla L ls esLlmaLed LhaL abouL 70 of Lhe drugs wlll
be covered by Lhe new paLenL laws 1hls wlll enLall
royalLy paymenL Lo Lhe paLenL holders resulLlng ln a
sLeep rlse ln prlces of drugs ln ndla owever Lhere
are confllcLlng esLlmaLes lf Lhe percenLage of Lhe
drugs LhaL wlll be covered by Lhe new paLenL laws
or lnsLance lbek uebroy ulrecLor 8a[lv Candhl
nsLlLuLe for onLemporary SLudles observed LhaL
only less Lhan 10 of Lhe drugs are covered by Lhe


0


paLenLs worldwlde 1he resL of Lhe drugs le more
Lhan 90 of Lhem have become generlc le Lhey
need no proLecLlon
18s also exLends paLenL llke proLecLlon Lo
agrlculLure Accordlngly proLecLlon ls soughL Lo be
exLended Lo mlcroorganlsms nonblologlcal and
mlcroblologlcal processes and planL varleLles
ArLlcle 27 of Lhe LexL on 18s sLaLes LhaL ndla may
provlde for proLecLlon of planL varleLles elLher by
paLenLs or by an effecLlve sul generlc sysLem or by a
comblnaLlon of Lhe Lwo 1hls sysLem shall come lnLo
exlsLence afLer Lhe explry of Lhe LranslLlonal perlod
of 10yrs le afLer 2003 ndla needs Lo work hard on
documenLlng lLs LradlLlonal knowledge on Ayurvedlc
and herbal planLs and obLaln paLenL proLecLlon or a
sul genesls sysLem ln order Lo prevenL bloplracy
1rade 8elaLed nvesLmenL ,easures (18,s) 1he
LexL on 18,s provldes LhaL governmenLs shall noL
dlscrlmlnaLe agalnsL forelgn caplLal le forelgn
caplLal should be glven naLlonal LreaLmenL 1he maln
feaLures of Lhe LexL on 18,s are as follows
a) All resLrlcLlons on forelgn caplLal lnvesLors and


1


companles should be abandoned
b) naLlonal LreaLmenL Lo forelgn lnvesLors le Lhey
wlll be glven Lhe same rlghLs as a naLlonal lnvesLor
has wlLh regard Lo lnvesLmenL
c) unresLrlcLed lnvesLmenL ln all spheres of
economlc acLlvlLles
d) no llmlLaLlon on Lhe exLenL of forelgn lnvesLmenL
ln any economlc enLlLy
e) ree lmporLs of raw maLerlals and componenLs
f) Local conLenL clause wlll noL be lmposed on
forelgn lnvesLors
g) no mandaLory exporL obllgaLlons on forelgn
lnvesLors
h) LllmlnaLlon of resLrlcLlons on repaLrlaLlon of
dlvldend lnLeresL and royalLy lncome
l) ompleLe excluslon of provlslons such as phased
manufacLurlng programmes whlch ls lnLended Lo
lncrease Lhe lndlgenous conLenL ln manufacLure
8esLrlcLlons on forelgn caplLal lnvesLmenL boLh
porLfollo and dlrecL have been progresslvely reduced
and more and more lndusLrles and secLors of
naLlonal economy have been Lhrown open Lo forelgn





lnvesLmenL 1he openlng of Lhe lnsurance secLor Lo
forelgn dlrecL lnvesLmenL has been Lhe laLesL ln Lhe
league wlLh lnLernaLlonal alrllnes lndusLry very much
on Lhe block
41exLlles and loLhlng 1he CA11 agreemenL
proposes Lo abandon Lhe ,ulLl lbre AgreemenL
by 2003 and fully llberallze Lhe LexLlle secLor 1he
,ulLl lbre agreemenL ls a comprehenslve
agreemenL on quoLa resLrlcLlons lmposed by Lhe rlch
counLrles over Lhe LexLlle exporLs of developlng
counLrles 1hese quoLas wlll be phased ouL under Lhe
W1C AcL ln Lhree phases n Lhe 1sL phase (199396)
16 of Lhe LexLlle exporLs Lo Lhe developed
counLrles wlll be llberallzed L wlll be followed by
17 ln Lhe 2nd phase (19962000) and 18 ln Lhe
3rd phase (20002003) 1hus by 2003 31 of Lhe
LexLlles markeL wlll be llberallzed







J@ INDI JN@S
ndla's baslc ob[ecLlves ln Lhe ongolng negoLlaLlons are
a1o proLecL lLs food and llvellhood securlLy
concerns and Lo proLecL all domesLlc pollcy
measures Laken for poverLy allevlaLlon rural
developmenL and rural employmenL
b1o creaLe opporLunlLles for expanslon of
agrlculLural exporLs by securlng meanlngful
markeL access ln developed counLrles

1hree maln feaLures of 18S
W SLandards
W LnforcemenL
W ulspuLe seLLlemenL
O Standards n respecL of each of Lhe maln areas of
lnLellecLual properLy covered by Lhe 18S
AgreemenL Lhe AgreemenL seLs ouL Lhe mlnlmum
sLandards of proLecLlon Lo be provlded by each
,ember Lach of Lhe maln elemenLs of proLecLlon ls
deflned namely Lhe sub[ecLmaLLer Lo be proLecLed
Lhe rlghLs Lo be conferred and permlsslble


4


excepLlons Lo Lhose rlghLs and Lhe mlnlmum
duraLlon of proLecLlon 1he AgreemenL seLs Lhese
sLandards by requlrlng flrsL LhaL Lhe subsLanLlve
obllgaLlons of Lhe maln convenLlons of Lhe WC Lhe
arls onvenLlon for Lhe roLecLlon of ndusLrlal
roperLy (arls onvenLlon) and Lhe erne
onvenLlon for Lhe roLecLlon of LlLerary and ArLlsLlc
Works (erne onvenLlon) ln Lhelr mosL recenL
verslons musL be complled wlLh WlLh Lhe excepLlon
of Lhe provlslons of Lhe erne onvenLlon on moral
rlghLs all Lhe maln subsLanLlve provlslons of Lhese
convenLlons are lncorporaLed by reference and Lhus
become obllgaLlons under Lhe 18S AgreemenL
beLween 18S ,ember counLrles 1he relevanL
provlslons are Lo be found ln ArLlcles 21 and 91 of
Lhe 18S AgreemenL whlch relaLe respecLlvely Lo
Lhe arls onvenLlon and Lo Lhe erne onvenLlon
Secondly Lhe 18S AgreemenL adds a subsLanLlal
number of addlLlonal obllgaLlons on maLLers where
Lhe preexlsLlng convenLlons are sllenL or were seen
as belng lnadequaLe 1he 18S AgreemenL ls Lhus
someLlmes referred Lo as a erne and arlsplus
agreemenL
O Lnforcement 1he second maln seL of provlslons
deals wlLh domesLlc procedures and remedles for


S


Lhe enforcemenL of lnLellecLual properLy rlghLs 1he
AgreemenL lays down cerLaln general prlnclples
appllcable Lo all 8 enforcemenL procedures n
addlLlon lL conLalns provlslons on clvll and
admlnlsLraLlve procedures and remedles provlslonal
measures speclal requlremenLs relaLed Lo border
measures and crlmlnal procedures whlch speclfy ln
a cerLaln amounL of deLall Lhe procedures and
remedles LhaL musL be avallable so LhaL rlghL holders
can effecLlvely enforce Lhelr rlghLs
O D|spute sett|ement 1he AgreemenL makes dlspuLes
beLween W1C ,embers abouL Lhe respecL of Lhe
18S obllgaLlons sub[ecL Lo Lhe W1Cs dlspuLe
seLLlemenL procedures







IMC@ CI SLkVICLS IN INDI
W Servlces were consldered Lo offer less poLenLlal for
Lrade expanslon Lhan goods
W uevelopmenL of new Lransmlsslon Lechnologles
faclllLaLlng Lhe supply of servlces
W Cpenlng of monopolles ln many counLrles
W Cradual llberallzaLlon of regulaLed secLors llke
LransporL banklng and lnsurance comblned wlLh
changes ln consumer preferences enhanced Lhe
LradablllLy" of servlces
W uevelopmenLs lncreased lnLernaLlonal servlces flows
and creaLed a slmllar need for mulLllaLeral dlsclpllnes
W ,aln purpose of W1C (CA1S) was Lo creaLe a
credlble and rellable sysLem of lnLernaLlonal Lrade
rules whlch ensured falr and equlLable LreaLmenL of
all counLrles on Lhe prlnclples of nondlscrlmlnaLlon
W L alms aL sLlmulaLlng Lrade and developmenL by
seeklng Lo creaLe a predlcLable pollcy envlronmenL
whereln Lhe member counLrles volunLarlly
underLake Lo blnd Lhelr pollcy reglmes relaLlng Lo
Lrade ln servlces


7


Importance of serv|ces sector to te Lconomy
W Lconomlc performance
W uevelopmenL
W LmploymenL CpporLunlLles
W onsumer holce
W 1echnology Lransfer
1 uslness servlces (lncludlng professlonal and
compuLer servlces)
2 ommunlcaLlon servlces
3 onsLrucLlon and Lnglneerlng servlces
4 ulsLrlbuLlon servlces (eg ommlsslon agenLs
wholesale reLall Lrade)
3 LducaLlon servlces
6 LnvlronmenL servlces
7 lnance (lncludlng lnsurance and banklng) servlces
8 ealLh servlces
9 1ourlsm and 1ravel servlces
10 8ecreaLlon ulLural and SporLlng Servlces


8


11 1ransporLaLlon Servlces and
12 CLher servlces noL elsewhere classlfled

Supp|y of serv|ces categor|zed under J@C
(@S%
W ,ode 1 rossborder supply
W ,ode 2 onsumpLlon abroad
W ,ode 3 ommerclal presence
W ,ode 4 resence or movemenL of naLural persons
Impact on f|nanc|a| serv|ces
W nsurance
ndlan parLy ndlan lnsurance company
26 forelgn equlLy
Auxlllary servlces !v 31 wlLh approval
W anklng
AppllcablllLy of mode 3 (Cpenlng of branch)
,ax 20 llcense per year


9


no llcense lf asseL (on off /s) 13 of LoLal
parLlclpaLlon for C C up Lo 74
venLure caplLal no cap
8esLrlcLlon on SL for surplus fund
lnvesLmenL ln v1 SL ank (49)
lnanclal lnformaLlon daLa processlng full
commlLmenL
AsseL mngL LrusL servlces penslon fund lnvesL
mngL 26 cap
1elecommunlcaLlon
Llcenslng requlremenL
Wlred communlcaLlon 23
,ode 2 full commlLmenL
,ode 3 u 49
,ode 4 horlzonLal secLlon



0


IMC@ CI DUMIN CN INDIN INDUS@k
uLnA1Cn
uumplng ls deflned
As Lhe pracLlce of selllng a good ln oLher counLry aL
a lower prlce Lhan ln Lhe domesLlc markeL or for a lower
prlce Lhan lLs cosL of producLlon"
LxA,LL
1C? nuuS18?
W hlnese manufacLurers
W 80 per cenL of Lhe Loys
W ndlan manufacLurers have been selllng Lhe hlnese
Loys
W A lg Loy car
hlnese 1oy 8s 80
ndlan 1oy 8s 230

AdvanLage for hlnese ,anufacLurers
W rlce senslLlve
W ompeLlLlve rlces




1


mpacL
W 1wo mllllon workers are ln serlous Lrouble
W ndlan manufacLurers have already closed Lhelr unlLs
W ,r vlshnu Swaroop Agarwal says
,ore Lhan 30 per cenL of ndlan Loy manufacLurers
have now Lurned lnLo lmporLers and dlsLrlbuLors of
lmporLed Loys"







J@C In|t|at|ves on nt|Dump|ng
W AgreemenL on mplemenLaLlon of ArLlcle v of CA11
W AgreemenL on Subsldles and ounLervalllng
,easures
W AgreemenLs on Safeguards

18,S AgreemenL
W AgreemenL ln 1993
W Appllcable Lo goods only
W rohlblLlon of lnconslsLenL 18,S



18,S AgreemenL
W noLlflcaLlon of lnconslsLency
W 1ranslLlon perlod
W LxLenslon
W llusLraLlve llsL


llusLraLlve llsL
W Local onLenL regulaLlon
W 1rade alanclng requlremenLs
W orelgn Lxchange balanclng requlremenLs
W uomesLlc sales requlremenLs





W 1echnology Lransfer requlremenLs
W Local LqulLy requlremenL

mpacL
W ndusLrlallzaLlon
W Lncourages domesLlc lnvesLmenL
W onservaLlon of forelgn exchange reserve

rlLlclsm
W no self rellanL growLh
W 8esLrlcLlve buslness pracLlces


rlLlclsm of Lhe W1C fall lnLo Lwo broad caLegorles
1Cr|t|c|sm of J@C a|ms 1he W1C ls very sLrongly
commlLLed Lo Lrade llberallzaLlon whlch means a
movemenL Lowards free Lrade boLh ln Lhe reducLlon
and ellmlnaLlon of Larlffs and a removal of nonLarlff
barrlers such as quoLas n facL Lhe flrsL four of Lhe
W1Cs prlnclples (see aslc acLs AbouL Lhe W1C)
are all expllclLly or lmpllclLly abouL Lhls 1hls poslLlon
(pro free Lrade) ls flrmly grounded ln maln sLream
Lrade economlcs parLlcularly comparaLlve
advanLage Lheory whlch lmplles LhaL free Lrade ls


4


an opLlmal sysLem (ln Lechnlcal Lerms lL ls pareLo
opLlmal see glossary) mporLanLly lL ls even good
for poor undeveloped counLrles hence Lhe W1Cs
flfLh prlnclple abouL developmenL
1hls however ls conLroverslal 1here are some
parLlcularly ln developmenL sLudles and
developmenL economlcs who are doubLful LhaL free
Lrade and deregulaLlon are ln facL good for
developlng counLrles or Lhe besL developmenL
paradlgm n facL lL ls ofLen felL LhaL free Lrade ls
acLually bad ln a varleLy of ways for poorer counLrles
and beneflclal malnly Lo rlcher ones f Lhls ls so Lhen
Lhe W1Cs phllosophy has serlous problems (lLs own
prlnclples are muLually conLradlcLory) and Lhe W1C
ls aL lLs very baslc level blased Lowards Lhe rlcher
counLrles
1he oLher maln crlLlclsm of Lhe W1Cs phllosophy
comes from envlronmenLal clrcles L ls felL LhaL Lhe
free Lrade/deregulaLory paradlgm ls deLrlmenLal Lo
Lhe envlronmenLal proLecLlon and preservaLlon n
facL some envlronmenLallsLs would argue LhaL Lhe
ldea of Lhe ulLlmaLe economlc good belng maLerlal
lmprovemenL (Cu growLh) whlch ls lmpllclL ln Lhe
W1Cs phllosophy ls fundamenLally mlsgulded ln
LhaL lL neglecLs and falls Lo Lake lnLo accounL Lhe


S


(negaLlve) envlronmenLal affecLs of pursulL of Lhls
economlc goal (eg global warmlng)
2Cr|t|c|sm of J@C pract|ces]structure rlLlclsm of
W1C pracLlces and/or sLrucLure focus on Lhe
democraLlc or undemocraLlc naLure of Lhe
organlzaLlon 1he polnLs Lend Lo separaLe lnLo Lwo
relaLed argumenLs lrsL LhaL Lhe sLrucLure and
personnel of Lhe W1C ls undemocraLlc ln varlous
ways LhaL lead Lo developed rlcher counLrles wlnnlng
ouL over less developed poorer counLrles Second
LhaL whlle noL acLlvely blased or undemocraLlc Lhe
W1C faclllLaLes and permlLs powerful groups Lo
domlnaLe Lhe oLhers (Lhese groups belng elLher Lhe
rlcher developed counLrles or eg 1ns
LransnaLlonal corporaLlons)
AparL from Lhls Lhe oLher maln crlLlclsm of W1C
pracLlces would be LhaL lL does noL lmplemenL lLs
phllosophy evenhandedly ln parLlcular free Lrade
argumenLs are used Lo open up Lhe markeLs of Lhlrd
world counLrles whlle Lhe developed world reLalns
all klnd of proLecLlonlsL measures n Lhls vlew Lhe
W1C has [usL been a meLhod of lnsLlLuLlonallzlng Lhe
accumulaLed advanLage of developed counLrles






greement on @kIS
ame lnLo effecL from 1
sL
Aprll2003
SeLs ,lnlmum sLandard for regulaLlon
ueals wlLh opyrlghL relaLed rlghLs aLenLs
1rademarks ndusLrlal deslgns
,osL omprehenslve agreemenL on 81he greement
on @rade ke|ated spects of Inte||ectua| roperty
k|gts (@kIS) ls an lnLernaLlonal
agreemenL admlnlsLered by Lhe World 1rade
CrganlzaLlon (W1C) LhaL seLs down mlnlmum sLandards
for many forms of lnLellecLual properLy () regulaLlon as
applled Lo naLlonals of oLher W1C ,embers L was
negoLlaLed aL Lhe end of Lhe uruguay 8ound of
Lhe Ceneral AgreemenL on 1arlffs and 1rade (CA11) ln
1994
1he 18S agreemenL lnLroduced lnLellecLual properLy
law lnLo Lhe lnLernaLlonal Lradlng sysLem for Lhe flrsL
Llme and remalns Lhe mosL comprehenslve lnLernaLlonal
agreemenL on lnLellecLual properLy Lo daLe n 2001
developlng counLrles concerned LhaL developed
counLrles were lnslsLlng on an overly narrow readlng of
18S lnlLlaLed a round of Lalks LhaL resulLed ln Lhe uoha
ueclaraLlon 1he uoha declaraLlon ls a W1C sLaLemenL
LhaL clarlfles Lhe scope of 18S sLaLlng for example LhaL


7


18S can and should be lnLerpreLed ln llghL of Lhe goal
Lo promoLe access Lo medlclnes for all
Speclflcally 18S conLalns requlremenLs LhaL naLlons
laws musL meeL for copyrlghL rlghLs lncludlng Lhe rlghLs
of performers producers of sound recordlngs and
broadcasLlng organlzaLlons geographical lncludlng
appellaLlons of orlgln lndusLrlal deslgns lnLegraLed
clrculL layouLdeslgns paLenLs monopolles for Lhe
developers of new planL varleLles Lrademarks Lrade
dress and undlsclosed or confldenLlal lnformaLlon 18S
also speclfles enforcemenL procedures remedles
and dlspuLe resoluLlon procedures roLecLlon and
enforcemenL of all lnLellecLual properLy rlghLs shall meeL
Lhe ob[ecLlves Lo conLrlbuLe Lo Lhe promoLlon of
Lechnologlcal lnnovaLlon and Lo Lhe Lransfer and
dlssemlnaLlon of Lechnology Lo Lhe muLual advanLage of
producers and users of Lechnologlcal knowledge and ln a
manner conduclve Lo soclal and economlc welfare and
Lo a balance of rlghLs and obllgaLlons
18S AgreemenL
W Copyr|gts and re|ated r|gts
W @rademarks
W eograp|ca| Ind|cat|ons
W Industr|a| Des|gns


8


W atents
W Lay out des|gns of |ntegrated c|rcu|ts
W rotect|on of und|sc|osed |nformat|on (trade
secrets%
18S mpacL
W losure of lndusLrles on large scale
W ndlan flrms concenLraLlon on generlc producLs
W Cpenlng research and developmenL by forelgn
,ulLlnaLlonal company
W SLandardlzaLlon of producL



9


Jat Ind|a sou|d do?
W 1he mosL lmporLanL Lhlngs for ndla Lo address are
speed up lnLernal reforms ln bulldlng up worldclass
lnfrasLrucLure llke roads porLs and elecLrlclLy supply
W ndlas ranklng ln recenL Clobal ompeLlLlveness
reporL ls noL very encouraglng due Lo lnfrasLrucLure
problems poor governance poor legal sysLem and
poor markeL access provlded by ndla
W Cur Larlffs are sLlll hlgh compared Lo ueveloped
counLrles and Lhere wlll be pressure Lo reduce Lhem
furLher and fasLer
W ndla has solld sLrengLh aL leasL for mldLerm (37
years) ln servlces secLor prlmarlly ln 1 secLor
W ndla would do well Lo reorganlze lLs roLecLlve
AgrlculLural pollcy ln name of rural poverLy and ood
securlLy and Lry Lo caplLallze on globallzaLlon of
agrlculLure markeLs
W ndla musL lmprove legal and admlnlsLraLlve
lnfrasLrucLure lmprove Lrade faclllLaLlon Lhrough
cuLLlng down bureaucracy and delays and furLher
ease lLs flnanclal markeLs
W ndla has Lo downslze nonplan expendlLure ln
Subsldles and CovernmenL salarles and perqulslLes
llke penslons and admlnlsLraLlve expendlLures


40


W orrupLlon wlll also have Lo be checked by brlnglng
ln fasL remedlal publlc grlevance sysLem legal
sysLem and lnformaLlon dlssemlnaLlon by uslng e
governance
W 1he peLroleum secLor has Lo be boosLed Lo Lap crude
oll and gas resources wlLhln ndlan boundarles and
enLerlng lnLo mulLlnaLlonal conLracLs Lo source oll
reserves



41


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