World Trade Organization

04/12/2023 1SVKM's NMIMS SPP SPTM

Charmi Popat (03)

SVKM’s NMIMS SPP SPTM (School of Pharmacy & Technology Management)

04/12/2023 SVKM's NMIMS SPP SPTM 2

WTO : ‘Multilateral’ trading system ...

• WTO deals with the rules of trade between nations at a global or near-global level

• It’s an organization for liberalizing trade

• It’s a negotiating forum …

• It’s a set of rules …

• And it helps to settle disputes …

04/12/2023 SVKM's NMIMS SPP SPTM 3

Born in 1995, but not so young

• WTO began life on 1 January 1995, but its trading system is half a century older

• It took over GATT (1948)• Created by: Uruguay Round negotiations (1986–

94)• India is one of the founder member of WTO• New Negotiation: “Doha Declaration”• Head: Director-General, Pascal Lamy• Location: Geneva, Switzerland

04/12/2023 SVKM's NMIMS SPP SPTM 4

159 Member countries as of 2nd March 2013

04/12/2023 SVKM's NMIMS SPP SPTM 5

Functions

Handling trade disputes

Monitoring national trade policies

Technical assistance and training for developing countries

Cooperation with other international organizations

04/12/2023 SVKM's NMIMS SPP SPTM 6

Objectives of WTOTo implement new world trade agreements

To promote multilateral trade among many nations

To speed up the economic development

To promote free trade by removing tariff & non-tariff barriers in international trade

To improve standard of living of global population

04/12/2023 SVKM's NMIMS SPP SPTM 7

Agreements: WTO Trade Rules

Goods Services Intellectual property

GATT GATS TRIPS

Other goods agreement & annexes

Services annexes

Countries schedules of commitments

Countries schedules of commitments (MNF exemptions)

AGREEMENT ESTABLIHING WTOUmbrella

TRADE POLICY REVEWS

DISPUTE SETTLEMENT

Basic principles

Additional details

Market access commitment

Dispute settlement

Transparency

04/12/2023 SVKM's NMIMS SPP SPTM 8

Process for dispute settlement in WTO

04/12/2023 SVKM's NMIMS SPP SPTM 9

Case study on dispute settlement

• Measure at issue: (i) The insufficiency of the legal regime – India's "mailbox rule" – under which patent application for pharmaceutical and agricultural chemical products could be filed; and (ii) the lack of a mechanism for granting exclusive marketing rights to such products.

• Intellection property at issue: Patent protection for pharmaceutical and agricultural chemical products, as provided under TRIPS Agreement Art. 27.

Parties Agreement

Complainant European CommunitiesTRIPS Arts. 70.8 & 70.9

Respondent India

04/12/2023 SVKM's NMIMS SPP SPTM 10

Case study on dispute settlement

Timeline of Dispute

Consultation 28th April 1997

Establishment of Panel 16th Oct. 1997

DSB established panel 16th Oct 1997

Circulation of Panel Report 24th Aug 1998

DSB Adoption 22nd Sep 1998

Implementation

India indication “Reasonable period of time” 21st Oct 1998

India’s joint statement 25th Nov. 1998

India’s final report 28th April 1999

04/12/2023 SVKM's NMIMS SPP SPTM 11

Impact on India

1. Increase in Foreign trade2. Increase in agricultural export3. Increase in inflow of foreign investment4. Benefits for clothing & textile industry5. Restrict dumping

1. Disadvantage to agricultural sector ( Import of food grains)2. Loss to domestic industries3.Patent of Indian herbs by foreign industries

04/12/2023 SVKM's NMIMS SPP SPTM 12

Benefits of WTO Trading System1. The system helps promote peace

2. Disputes are handled constructively

3. Rules make life easier for all

4. Freer trade cuts the costs of living

5. It provides more choice of products and qualities

6. Trade raises incomes

7. Trade stimulates economic growth

8. The basic principles make life more efficient

9. Governments are shielded from lobbying

10. The system encourages good government

04/12/2023 SVKM's NMIMS SPP SPTM 13

THANK YOU