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LECTURE NO. 15
WTO
Formed in 1995 WTO is the only global international organization dealing with the rules of trade between nations.

Arguments for WTO: 1. Free trade cuts the cost of living 2. More choice of products & better quality 3. Trade raises income 4. Rules make life easier for all 5. The disputes are handled constructively 6. The system helps promote peace 7. Trade stimulates economic growth 8. Basic principles make life more efficient Criticism against WTO 1. WTO dictates policy 2. WTO is for free trade at any cost 3. Commercial interests take priority over development 4. Commercial interests take priority over environment 5. Commercial interests take priority over health & safety. 6. WTO destroys jobs, worsens poverty

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7. Small countries are powerless in the WTO. 8. WTO is the tool of powerful lobbies Under agricultural agreement, WTO members have to reduce their subsidies. (If USA reduces subsidies, agricultural products become costly for poor nations for Africa to import, but may be that is the reason their farmers do not get motivation to grow). Since 1/1/2005 quotas on textiles & clothing is removed India/China beneficiary. Concept of TRIMs : Trade Related Investment Measures like : (a) Local content requirement (b) % age exports (c) Leveling of exports & imports etc. Concept of TRIPs : Trade Related Intellectual Property Rights covers patents New/ improved 14yrs (7yrs for drugs/food) Industrial designs design act 1911 (15yrs) Copyright lifetime of author + 60yrs Trademarks indefinite period by periodic renewal. Importance in the age of information age : Importance to India in competitive areas of a) Software development b) Bio technology etc. Important for

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a) R&D b) Stimulate innovation Intell. Property is intangible in nature. Copyright also include Cinematography films, sound recording, musical or artistic work. Patents / design can be sold also for Lump sump amount. Without trademarks markets will be flooded with spurious goods. Entertainment industry is highly dependent on copyright (film industry) property law is one of the fastest growing branch of law When the patent right expires, the technology becomes public property. Process for making things can also be patented. Few things cannot be patented like human genes, a perpetual motion machines (against laws of nature). Technology has made reproduction of copyright easy& cheap but it has made piracy simple but difficult to control. India third largest piracy market 30% sales through piracy Industrial drawings can be a copyright (60yrs after life) machines made out of these drawings can be patented (14yrs). So it is better to have a copyright of drawings, so that this property is held longer. There is no copyright for ideas. Copyright is only in the material form in which the ideas are expressed. Trade mark can be protected in perpetuity by using & renewing periodically.

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Any distinguishing sign/mark can be trade mark. Advantage of trademark a) Product & its origin b) Reflects its quality c) Advertises the product d) Creates an image for the product Copyright of industrial design is for 15yrs. What about Ayurvedic medicines, Mehendi tattoos , Bhandni duppattas, Lac bangles. These are traditional industries, we should take proactive approach. Agriculture: - patenting of agricultural commodities enables the patent holder to gain a premium price on it. TRIPs provides for patents for goods which can be identified as originating in a territory or a region where a given quality or characteristics is essentially attributable to its geographical origin. Controversial patents Taxmati, Jasmati, Kasmati, Basmati, Eggplant, Bitter gourd & jamun as a remedy for diabetes. Pharmaceutical industry, because of high R&D cost is very sensitive for patents. Paradox in India: - protected from foreign competition. But one of the most competitive in the world. a) Concept of generic drug/patented drug b) Process patent v/s drug patent, Concept of public health/ poverty v/s economic benefits v/s motivation for research for public health.

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c) Research based organizations may be tempted to come to India to take advantage of availability of cheap scientist if patent law is made more powerful. d) Most of the patents of drugs are coming to an end. This will benefit India. Concept of tariff bound (Bind) Q.R. Concept of trade in services (GATS) a) Services supplied from one country to another (cross border supply) telephones. b) Consumers making use of services in another country (tourism). c) A foreign company setting up a subsidiary (banks) commercial present. d) Individual traveling from their own country to supply services in another country (consultants) (teachers).