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Function
Principal of the trading system
Organizational structure
Agreement
TRIPS Agreement
TRIMS Agreement
Bibliography

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WTO AND ITS VARIOUS AGREEMENT

IN PARTIAL FULFILMENT OF THE REQUIREMENT UNDER SEMESTER BASED
CREDIT & GRADING SYSTEM FOR POST GRADUATE SEMESTER I

Program under faculty of commerce

MASTER OF COMMERCE (EVENING)

SYDENHAM COLLEGE OF COMMERCE & ECONOMICS

SUBMITTED BY:
AKASH MAHADEV TOKE
ROLL NO: 52
PROJECT GUIDE:

Dr. Anil R. Chougule

(M.A, MPhil, NET, Ph.D.)

Assistant professor

SYDENHAM COLLEGE OF COMMERCE &

ECONOMICS
2014-2015

DECLARATION

I Mr. AKASH TOKE the student of M.Com- I (Evening) 1ST.Semester (20142015), hereby declare that I have completed the project on . The information
submitted is true and original to the best of my knowledge.

Signature of student:
_________________
AKASH MAHADEV TOKE
Roll No: 52

CERTIFICATE

This is to certify that Mr. AKASH MAHADEV TOKE of M.Com -I (Evening)

Semester-I (2014-2015) has successfully completed the Project on WTO AND
ITS AGREEMENT under the guidance of Dr. Anil R. Chougule.
1

Project Guide: ___________________

Internal Examiner: ________________

External Examiner: ________________

DATE: ____________________
PLACE: ___________________

ACKNOWLEDGEMENT

I would firstly like to thank the UNIVERSITY OF MUMBAI for giving us the
liberty of choosing such topic which will be benefited to us in future. I would like
to thanks the Principal of Sydenham College Dr. Annasaheb Khemnar for giving
me the opportunity to study in this esteemed college and doing the course of
Accountancy. I would like to express my sincere gratitude and thanks to Dr. Anil
R. Chugule who is my project guide, as he has been the guiding light for this
project and has also provided me with the best of my knowledge, advice and
encouragement which helped me in successful completion of my project.
My colleagues and specially my parents who have also supported and encouraged
me, the success of this project to the large extent is also dedicated to them.

I would also like to thank all those who have helped me and whom I have forgotten
to mention in this space

SIGNATURE OF STUDENT: ______________

INTRODUCTION
The World Trade Organization (WTO) is an organization that intends to supervise
and liberalize international trade. The organization officially commenced on 1 January
1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and
Trade (GATT), which commenced in 1948 The organization deals with regulation of
trade between participating countries by providing a framework for negotiating and
formalizing trade agreements and a dispute resolution process aimed at enforcing
participant's adherence to WTO agreements, which are signed by representatives of
member government and ratified by their parliaments.Most of the issues that the WTO
focuses on derive from previous trade negotiations, especially from the Uruguay
Round (19861994).
The organization is attempting to complete negotiations on the Doha Development
Round, which was launched in 2001 with an explicit focus on addressing the needs of
developing countries. As of June 2012, the future of the Doha Round remained
uncertain: the work programme lists 21 subjects in which the original deadline of 1
January 2005 was missed, and the round is still incomplete. The conflict between free
trade on industrial goods and services but retention of protectionism on farm
subsidies to domestic agricultural sector (requested by developed countries) and
the substantiation of the international liberalization of fair trade on agricultural products
(requested by developing countries) remain the major obstacles. These points of
contention have hindered any progress to launch new WTO negotiations beyond the
Doha Development Round. As a result of this impasse, there has been an increasing
number of bilateral free trade agreements signed. As of July 2012, there were various
negotiation groups in the WTO system for the current agricultural trade negotiation
which is in the condition of stalemate.
WTO's current Director-General is Roberto Azevdo, who leads a staff of over 600
people in Geneva, Switzerland. A trade facilitation agreement known as the Bali
Package was reached by all members on 7 December 2013, the first comprehensive
agreement in the organization's history.

History
The economists Harry White (left) and John Maynard Keynes at theBretton Woods
Conference. Both had been strong advocates of a central-controlled international trade
environment and recommended the establishment of three institutions: theIMF (for fiscal
and monetary issues); the World Bank (for financial and structural issues); and
the ITO (for international economic cooperation).
The WTO's predecessor, the General Agreement on Tariffs and Trade (GATT), was
established after World War II in the wake of other new multilateral institutions dedicated
to international economic cooperation notably the Bretton Woods institutions known
as the World Bankand the International Monetary Fund. A comparable international
institution for trade, named the International Trade Organization was successfully
negotiated. The ITO was to be a United Nations specialized agency and would address
not only trade barriers but other issues indirectly related to trade, including employment,
investment, restrictive business practices, and commodity agreements. But the ITO
treaty was not approved by the U.S. and a few other signatories and never went into
effect.
In the absence of an international organization for trade, the GATT would over the years
"transform itself" into a de facto international organization.

GATT rounds of negotiations

The GATT was the only multilateral instrument governing international trade from 1946
until the WTO was established on 1 January 1995.Despite attempts in the mid-1950s
and 1960s to create some form of institutional mechanism for international trade, the
GATT continued to operate for almost half a century as a semi-institutionalized
multilateral treaty regime on a provisional basis.

From Geneva to Tokyo

Seven rounds of negotiations occurred under GATT. The first real GATT trade rounds
concentrated on further reducing tariffs. Then, theKennedy Round in the mid-sixties
brought about a GATT anti-dumping Agreement and a section on development.
Because these plurilateral agreements were not accepted by the full GATT membership,
they were often informally called "codes". Several of these codes were amended in the
Uruguay Round, and turned into multilateral commitments accepted by all WTO
members. Only four remained plurilateral (those on government procurement, bovine
meat, civil aircraft and dairy products), but in 1997 WTO members agreed to terminate
the bovine meat and dairy agreements, leaving only two.

Uruguay Round
During the Doha Round, the US government blamed Brazil and India for being inflexible
and the EU for impeding agricultural imports. [23] The then-President of Brazil, Luiz Incio
Lula da Silva (above right), responded to the criticisms by arguing that progress would
only be achieved if the richest countries (especially the US and countries in the EU)
made deeper cuts in agricultural subsidies and further opened their markets for
agricultural goods.
The GATT still exists as the WTO's umbrella treaty for trade in goods, updated as a
result of the Uruguay Round negotiations (a distinction is made between GATT 1994,
the updated parts of GATT, and GATT 1947, the original agreement which is still the
heart of GATT 1994). GATT 1994 is not however the only legally binding agreement
included via the Final Act at Marrakesh; a long list of about 60 agreements, annexes,
decisions and understandings was adopted. The agreements fall into a structure with
six main parts:

The Agreement Establishing the WTO

Goods and investment the Multilateral Agreements on Trade in Goods including
the GATT 1994 and the Trade Related Investment Measures (TRIMS)
Services the General Agreement on Trade in Services
Intellectual property the Agreement on Trade-Related Aspects of Intellectual
Property Rights (TRIPS)

Dispute settlement (DSU)

Reviews of governments' trade policies (TPRM)

In terms of the WTO's principle relating to tariff "ceiling-binding" (No. 3), the Uruguay
Round has been successful in increasing binding commitments by both developed and
developing countries, as may be seen in the percentages of tariffs bound before and
after the 19861994 talks.

Ministerial conferences

The highest decision-making body of the WTO is the Ministerial Conference, which
usually meets every two years. It brings together all members of the WTO, all of which
are countries or customs unions. The Ministerial Conference can take decisions on all
matters under any of the multilateral trade agreements. The inaugural ministerial
conference was held in Singapore in 1996. Disagreements between largely developed
and developing economies emerged during this conference over four issues initiated by
this conference, which led to them being collectively referred to as the "Singapore
issues". The second ministerial conference was held in Geneva in Switzerland.
The third conference in Seattle, Washington ended in failure, with massive
demonstrations and police and National Guard crowd-control efforts drawing worldwide
attention. The fourth ministerial conference was held in Doha in the Persian Gulf nation
of Qatar.
The sixth WTO ministerial conference was held in Hong Kong from 1318 December
2005. It was considered vital if the four-year-old Doha Development Round negotiations
were to move forward sufficiently to conclude the round in 2006. In this meeting,
countries agreed to phase out all their agricultural export subsidies by the end of 2013,
and terminate any cotton export subsidies by the end of 2006. Further concessions to
developing countries included an agreement to introduce duty-free, tariff-free access for
goods from the Least Developed Countries, following the Everything but Arms initiative
of the European Union but with up to 3% of tariff lines exempted. Other major issues
were left for further negotiation to be completed by the end of 2010. The WTO General
Council, on 26 May 2009, agreed to hold a seventh WTO ministerial conference session
in Geneva from 30 November-3 December 2009.The general theme for discussion was
"The WTO, the Multilateral Trading System and the Current Global Economic
Environment"

Doha Round (Doha Agenda)

The WTO launched the current round of negotiations, the Doha Development Round, at
the fourth ministerial conference in Doha, Qatar in November 2001. This was to be an
ambitious effort to make globalization more inclusive and help the world's poor,
particularly by slashing barriers and subsidies in farming. The initial agenda comprised
both further trade liberalization and new rule-making, underpinned by commitments to
strengthen substantial assistance to developing countries.
The negotiations have been highly contentious. Disagreements still continue over
several key areas including agriculture subsidies, which emerged as critical in July
2006. According to a European Union statement, "The 2008 Ministerial meeting broke
down over a disagreement between exporters of agricultural bulk commodities and
countries with large numbers of subsistence farmers on the precise terms of a 'special

safeguard measure' to protect farmers from surges in imports." The position of

the European Commission is that "The successful conclusion of the Doha negotiations
would confirm the central role of multilateral liberalisation and rule-making."He added:
...we are not yet close to agreementin fact, the substantive discussion of the
proposal is only beginning.

Functions
Among the various functions of the WTO, these are regarded by analysts as the most
important:

It oversees the implementation, administration and operation of the covered

agreements.
It provides a forum for negotiations and for settling disputes.

Additionally, it is the WTO's duty to review and propagate the national trade policies,
and to ensure the coherence and transparency of trade policies through surveillance in
global economic policy-making. Another priority of the WTO is the assistance
of developing, least-developed and low-income countries in transition to adjust to WTO
rules and disciplines through technical cooperation and training.
(i) The WTO shall facilitate the implementation, administration and operation and
further the objectives of this Agreement and of the Multilateral Trade Agreements, and
shall also provide the frame work for the implementation, administration and operation
of the multilateral Trade Agreements.
(ii) The WTO shall provide the forum for negotiations among its members concerning
their multilateral trade relations in matters dealt with under the Agreement in the
Annexes to this Agreement.
(iii) The WTO shall administer the Understanding on Rules and Procedures Governing
the Settlement of Disputes.
(iv) The WTO shall administer Trade Policy Review Mechanism.
(v) With a view to achieving greater coherence in global economic policy making, the
WTO shall cooperate, as appropriate, with the international Monetary Fund (IMF) and
with the International Bank for Reconstruction and Development (IBRD) and its affiliated
agencies.
The above five listings are the additional functions of the World Trade Organization. As
globalization proceeds in today's society, the necessity of an International
Organization to manage the trading systems has been of vital importance.

The WTO is also a center of economic research and analysis: regular assessments of
the global trade picture in its annual publications and research reports on specific topics
are produced by the organization. Finally, the WTO cooperates closely with the two
other components of the Bretton Woods system, the IMF and the World Bank.

Principles of the trading system

The WTO establishes a framework for trade policies; it does not define or specify
outcomes. That is, it is concerned with setting the rules of the trade policy games. Five
principles are of particular importance in understanding both the pre-1994 GATT and the
WTO:
1. Non-discrimination. It has two major components: the most favoured
nation (MFN) rule, and the national treatment policy. Both are embedded in the
main WTO rules on goods, services, and intellectual property, but their precise
scope and nature differ across these areas. Reciprocity. It reflects both a desire
to limit the scope of free-riding that may arise because of the MFN rule, and a
desire to obtain better access to foreign markets. A related point is that for a
nation to negotiate, it is necessary that the gain from doing so be greater than
the gain available from unilateral liberalization; reciprocal concessions intend to
ensure that such gains will materialise.

2. Binding and enforceable commitments. The tariff commitments made by WTO

members in a multilateral trade negotiation and on accession are enumerated in
a schedule (list) of concessions. These schedules establish "ceiling bindings": a
country can change its bindings, but only after negotiating with its trading
partners, which could mean compensating them for loss of trade. If satisfaction
is not obtained, the complaining country may invoke the WTO dispute settlement
procedures.
3. Transparency. The WTO members are required to publish their trade
regulations, to maintain institutions allowing for the review of administrative
decisions affecting trade, to respond to requests for information by other
members, and to notify changes in trade policies to the WTO.
4. Safety valves. In specific circumstances, governments are able to restrict trade.
The WTO's agreements permit members to take measures to protect not only

the environment but also public health, animal health and plant health. There are
three types of provision in this direction:

articles allowing for the use of trade measures to attain non-economic

objectives;

articles aimed at ensuring "fair competition"; members must not use

environmental protection measures as a means of disguising protectionist
policies.

provisions permitting intervention in trade for economic reasons. Exceptions

to the MFN principle also allow for preferential treatment of developing
countries, regional free trade areas and customs unions.

Organizational structure
The General Council has the following subsidiary bodies which oversee committees
in different areas:
Council for Trade in Goods
There are 11 committees under the jurisdiction of the Goods Council each with a
specific task. All members of the WTO participate in the committees. The Textiles
Monitoring Body is separate from the other committees but still under the
jurisdiction of Goods Council. The body has its own chairman and only 10
members. The body also has several groups relating to textiles.
Council for Trade-Related Aspects of Intellectual Property Rights
Information on intellectual property in the WTO, news and official records of the
activities of the TRIPS Council, and details of the WTO's work with other
international organizations in the field.
Council for Trade in Services
The Council for Trade in Services operates under the guidance of the General
Council and is responsible for overseeing the functioning of the General
Agreement on Trade in Services (GATS). It is open to all WTO members, and
can create subsidiary bodies as required.
Trade Negotiations Committee
The Trade Negotiations Committee (TNC) is the committee that deals with the
current trade talks round. The chair is WTO's director-general. As of June
2012 the committee was tasked with the Doha Development Round.
The Service Council has three subsidiary bodies: financial services,
domestic regulations, GATS rules and specific commitments. The
council has several different committees, working groups, and

working parties. There are committees on the following: Trade and

Environment; Trade and Development (Subcommittee on LeastDeveloped Countries);Regional Trade Agreements; Balance of
Payments Restrictions; and Budget, Finance and Administration.
There are working parties on the following: Accession. There are
working groups on the following: Trade, debt and finance; and Trade
and technology transfer.

Decision-making
The WTO describes itself as "a rules-based, member-driven
organization all decisions are made by the member governments,
and the rules are the outcome of negotiations among members". The
WTO Agreement foresees votes where consensus cannot be
reached, but the practice of consensus dominates the process of
decision-making.

Dispute settlement
In 1994, the WTO members agreed on the Understanding on Rules
and Procedures Governing the Settlement of Disputes (DSU)
annexed to the "Final Act" signed in Marrakesh in 1994. Dispute
settlement is regarded by the WTO as the central pillar of the
multilateral trading system, and as a "unique contribution to the
stability of the global economy".WTO members have agreed that, if
they believe fellow-members are violating trade rules, they will use
the multilateral system of settling disputes instead of taking action
unilaterally. The operation of the WTO dispute settlement process
involves the DSB panels, the Appellate Body, the WTO Secretariat,
arbitrators,
independent
experts
and
several
specialized
institutions. Bodies involved in the dispute settlement process, World
Trade Organization.

Accession and membership

The process of becoming a WTO member is unique to each applicant
country, and the terms of accession are dependent upon the country's
stage of economic development and current trade regime.The
process takes about five years, on average, but it can last more if the

country is less than fully committed to the process or if political issues

interfere.The re-convened Working Party completed its mandate on 2
May 2011. The General Council formally approved the Accession
Package of Vanuatu on 26 October 2011. On 24 August 2012, the
WTO welcomed Vanuatu as its 157th member. An offer of accession
is only given once consensus is reached among interested parties.

Accession process
representation with the European Union)
Draft Working Party Report or Factual Summary adopted
Goods and/or Services offers submitted
Memorandum on Foreign Trade Regime (FTR) submitted
Observer, negotiations to start later or no Memorandum on FTR
submitted
Frozen procedures or no negotiations in the last 3 years
No official interaction with the WTO
A country wishing to accede to the WTO submits an application to the
General Council, and has to describe all aspects of its trade and
economic policies that have a bearing on WTO agreements. The
application is submitted to the WTO in a memorandum which is
examined by a working party open to all interested WTO Members.
After all necessary background information has been acquired, the
working party focuses on issues of discrepancy between the WTO
rules and the applicant's international and domestic trade policies and
laws. The working party determines the terms and conditions of entry
into the WTO for the applicant nation, and may consider transitional
periods to allow countries some leeway in complying with the WTO
rules.
The final phase of accession involves bilateral negotiations between
the applicant nation and other working party members regarding the
concessions and commitments on tariff levels and market access for
goods and services. The new member's commitments are to apply
equally to all WTO members under normal non-discrimination rules,
even though they are negotiated bilaterally.

Members and observers

The WTO has 160 members and 24 observer governments. [69] In
addition to states, the European Union is a member. WTO members

do not have to be full sovereign nation-members. Instead, they must

be a customs territory with full autonomy in the conduct of their
external commercial relations. Thus Hong Kong has been a member
since 1995 (as "Hong Kong, China" since 1997) predating the
People's Republic of China, which joined in 2001 after 15 years of
negotiations. The Republic of China (Taiwan) acceded to the WTO in
2002
as
"Separate
Customs
Territory
of Taiwan, Penghu, Kinmen and Matsu" (Chinese Taipei) despite
its disputed status. The WTO Secretariat omits the official titles (such
as Counselor, First Secretary, Second Secretary and Third Secretary)
of the members of Chinese Taipei's Permanent Mission to the WTO,
except for the titles of the Permanent Representative and the Deputy
Permanent Representative.
As of 2007, WTO member states represented 96.4% of global trade
and 96.7% of global GDP. Iran, followed by Algeria, are the
economies with the largest GDP and trade outside the WTO, using
2005 data. With the exception of the Holy See, observers must start
accession negotiations within five years of becoming observers. A
number of international intergovernmental organizations have also
been granted observer status to WTO bodies. 14 states and two
territories so far have no official interaction with the WTO.

Agreements
The WTO oversees about 60 different agreements which have the
status of international legal texts. Member countries must sign and
ratify all WTO agreements on accession. A discussion of some of the
most
important
agreements
follows.
The Agreement
on
Agriculture came into effect with the establishment of the WTO at the
beginning of 1995. The AoA has three central concepts, or "pillars":
domestic support, market access and export subsidies. The General
Agreement on Trade in Services was created to extend the
multilateral trading system to service sector, in the same way as the
General Agreement on Tariffs and Trade (GATT) provided such a
system for merchandise trade. The agreement entered into force in
January 1995. The Agreement on Trade-Related Aspects of
Intellectual Property Rights sets down minimum standards for many
forms of intellectual property (IP) regulation. It was negotiated at the

end of the Uruguay Round of the General Agreement on Tariffs and

Trade (GATT) in 1994.
The Agreement on the Application of Sanitary and Phytosanitary
Measuresalso known as the SPS Agreementwas negotiated
during the Uruguay Round of GATT, and entered into force with the
establishment of the WTO at the beginning of 1995. Under the SPS
agreement, the WTO sets constraints on members' policies relating to
food safety (bacterial contaminants, pesticides, inspection and
labelling) as well as animal and plant health (imported pests and
diseases). The Agreement on Technical Barriers to Trade is an
international treaty of the World Trade Organization. It was negotiated
during the Uruguay Round of the General Agreement on Tariffs and
Trade, and entered into force with the establishment of the WTO at
the end of 1994. The object ensures that technical negotiations and
standards, as well as testing and certification procedures, do not
create unnecessary obstacles to trade".The Agreement on Customs
Valuation, formally known as the Agreement on Implementation of
Article VII of GATT, prescribes methods of customs valuation that
Members are to follow. Chiefly, it adopts the "transaction value"
approach.
In December 2013, the biggest agreement within the WTO was
signed and known as the Bali Package.
Office of director-general
The procedures for the appointment of the WTO director-general
were published in January 2003. Additionally, there are four deputy
directors-general. As of 1 October 2013, under director-general
Roberto Azevdo, the four deputy directors-general are Yi Xiaozhun
of China, Karl-Ernst Brauner of Germany, Yonov Frederick Agah of
Nigeria and David Shark of the United States.

List of directors-general
Roberto Azevedo, 2013

Pascal Lamy, 20052013

Supachai Panitchpakdi, 20022005

Mike Moore, 19992002

Renato Ruggiero, 19951999

Peter Sutherland, 1995

(Heads of the precursor organization, GATT):

Peter Sutherland, 19931995

Arthur Dunkel, 19801993

Olivier Long, 19681980

Eric Wyndham White, 19481968

Agreement
Two types of agreement are:

Trade Related Investment Measures (TRIM)

Trade-Related Aspects of Intellectual Property Rights (TRIPS)

TRIM Agreement
Agreement on Trade Related Investment Measures
The Agreement on Trade Related Investment Measures (TRIMs) are rules that apply
to the domestic regulations a country applies to foreign investors, often as part of
anindustrial policy. The agreement was agreed upon by all members of the World Trade
Organization. The agreement was concluded in 1994 and came into force in 1995. The

WTO wasn't established at that time, it was its predecessor, the GATT (General
Agreement on Trade and Tariffs. The WTO came about in 1994-1995.)
Policies such as local content requirements and trade balancing rules that have
traditionally been used to both promote the interests of domestic industries and combat
restrictive business practices are now banned.
Trade Related Investment Measures is the name of one of the four principal legal
agreements of the WTO trade treaty.
TRIMs are rules that restrict preference of domestic firms and thereby enable
international firms to operate more easily within foreign markets.

TRADE-RELATED INVESTMENT MEASURES

1. OVERVIEW OF RULES
(1 Trade-Related Investment Measures )
In the late 1980's, there was a significant increase in foreign direct investment
throughout the world. However, some of the countries receiving foreign investment
imposed numerous restrictions on that investment designed to protect and foster
domestic industries, and to prevent the outflow of foreign exchange reserves.
Examples of these restrictions include local content requirements (which require that
locally-produced goods be purchased or used), manufacturing requirements (which
require the domestic manufacturing of certain components), trade balancing
requirements, domestic sales requirements, technology transfer requirements,
export performance requirements (which require the export of a specified
percentage of production volume), local equity restrictions, foreign exchange
restrictions, remittance restrictions, licensing requirements, and employment
restrictions. These measures can also be used in connection with fiscal incentives
as opposed to requirement. Some of these investment measures distort trade in
violation of GATT Article III and XI, and are therefore prohibited.
Until the completion of the Uruguay Round negotiations, which produced a wellrounded Agreement on Trade-Related Investment Measures (hereinafter the "TRIMs
Agreement"), the few international agreements providing disciplines for measures
restricting foreign investment provided only limited guidance in terms of content and
country coverage. The OECD Code on Liberalization of Capital Movements, for
example, requires members to liberalize restrictions on direct investment in a broad
range of areas. The OECD Code's efficacy, however, is limited by the numerous
reservations made by each of the members.
In addition, there are other international treaties, bilateral and multilateral, under
which signatories extend most-favoured-nation treatment to direct investment. Only
a few such treaties, however, provide national treatment for direct investment.

Moreover, although the APEC Investment Principles adopted in November 1994

provide rules for investment as a whole, including non-discrimination and national
treatment, they have no binding force.
(2 Legal Framework)
GATT 1947 prohibited investment measures that violated the principles of national
treatment and the general elimination of quantitative restrictions, but the extent of
the prohibitions was never clear. The TRIMs Agreement, however, contains
statements prohibiting any TRIMs that are inconsistent with the provisions of Articles
III or XI of GATT 1994. In addition, it provides an illustrative list that explicitly
prohibits local content requirements, trade balancing requirements, foreign
exchange restrictions and export restrictions (domestic sales requirements) that
would violate Article III:4 or XI:1 of GATT 1994. TRIMs prohibited by the Agreement
include those which are mandatory or enforceable under domestic law or
administrative rulings, or those with which compliance is necessary to obtain an
advantage (such as subsidies or tax breaks).
contains a list of measures specifically prohibited by the TRIMs Agreement. Note
that this figure is not exhaustive, but simply illustrates TRIMs that are prohibited by
the TRIMs Agreement. The figure, therefore, calls particular attention to several
common types of TRIMs. We would add that this figure identifies measures that
were also inconsistent with Article III:4 and XI:1 of GATT 1947. Indeed, the TRIMs
Agreement is not intended to impose new obligations, but to clarify the pre-existing
GATT 1947 obligations. Under the WTO TRIMs Agreement, countries are required
to rectify any measures inconsistent with the Agreement, within a set period of time,
with a few exceptions.
Future Challenges
The TRIMs Agreement is only a first step toward eliminating trade distortions.
Although some policies, such as certain export requirements, are not expressly
prohibited by the TRIMs Agreement, it is important that governments understand the
capacity of such measures to distort trade. Disciplines on these policies will need to
be given further consideration in the new investment working group that the WTO
Ministerial Conference decided to establish in December 1996.
The TRIMs Agreement is scheduled to come up for review within five years of the
entry into force of the WTO Agreement and efforts should be made to incorporate
appropriate new rules to address such additional policies at that time.
Efforts to Establish New Rules Regarding Investment
(i) Efforts to establish a Multilateral Agreement on Investment at the OECD
Members of the OECD have been negotiating a comprehensive and legallybinding "Multilateral Agreement on Investment" (MAI) that would provide for
both the liberalization and the protection of foreign investments. The
Agreement would provide 1) a high degree of discipline on investment
protection; 2) broad obligations to liberalize investment; and 3) an effective

dispute-settlement mechanism that would include a scheme for litigating

disputes between investors and states as well as between states. It was
expected that the Agreement would be open to all countries, not just OECD
members.
Negotiations, which began in May 1995 with a goal of presenting a draft to the
OECD Ministerial Council in April 1998, were extended because of an inability
to reach a compromise on liberalization commitments, general exceptions and
considerations to the environment and labour. However, immediately before
the resumption of the negotiations in October 1998, France withdrew from the
negotiations due to the reason that the above-mentioned high degree of
disciple would violate its sovereignty. Thus, it became difficult to continue the
negotiations and at present the negotiations are not conducted.
The following four points about MAI remain to be solved: whether to allow
exceptions to the "standstill" clause for certain specific areas; whether
exceptions to most-favoured-nation treatment should be allowed for regional
economic integration organizations; whether to allow a general exception for
cultural reasons; and whether to include provisions covering environment and
labour issues. In addition, there is no concrete results regarding countryspecific exceptions.
There are strong needs for some Multilateral Framework on Investment (MFI).
The OECD Committee on International Investment and Multinational
Enterprise (CIME) is scheduled to discuss, towards the OECD Ministerial
Council in May 1999, how to develop the future work programme including the
continuation of the analytical work.
(ii) Efforts to Establish a Comprehensive Legal Framework for Investment at
the WTO
WTO investment disciplines are found in the TRIMs Agreement and the GATS,
but both of these deal with particular areas or particular aspects of investment.
There is currently no comprehensive multilateral legal framework that provides
investment disciplines.
As we have noted, the OECD was negotiating a comprehensive, legallybinding Multilateral Agreement on Investment (MAI) that would liberalize
investment and provide protection for foreign investments. However, it is said
that the level of commitments to be included in the agreement was too high for
developing countries and there were doubts about how many developing
countries would actually join.
The WTO Singapore Ministerial Conference of December 1996 therefore
decided to establish a Working Group on the Relationship between Trade and
Investment so that countries could examine the need for comprehensive
investment rules in which the developing countries participate as well as the
developed countries. In the past two years the Working Group did analyze and
review the following three issues: "implications of the relationship between
trade and investment for development and economic growth," "the economic
relationship between trade and investment," and "stock-taking and analysis of
existing international instruments". The Group reported the results of the

review to the General Council. The WTO General Council decided to extend
the Working Group's work programme to further analyze and discuss on
investment. Whether to negotiate comprehensive rules on investment will be
further discussed, with a view towards the Third WTO Ministerial Conference
at the end of 1999, within the framework of the General Council's preparatory
process for the next trade negotiations starting in 2000. Along with this
process, the Working Group will continue its work in order to contribute to the
General Council's discussion.

Examples of TRIMs Explicitly Prohibited by the TRIMs Agreement

Local content
requirement

Measures requiring the purchase or use by an enterprise of

domestic products, whether specified in terms of particular
products, in terms of volume or value of products, or in
terms of a proportion of volume or value of its local
production. (Violation of GATT Article III:4)

Trade balancing
requirements

Measures requiring that an enterprise's purchases or use of

imported products be limited to an amount related to the
volume or value of local products that it exports. (Violation
of GATT Article III:4)
Measures restricting the importation by an enterprise of
products used in or related to its local production, generally
or to an amount related to the volume or value of local
production that it exports. (Violation of GATT Article XI:1)

Foreign exchange
restrictions

Measures restricting the importation by an enterprise of

products (parts and other goods) used in or related to its
local Production by restricting its access to foreign
exchange to an amount related to the foreign exchange
inflows attributable to the enterprise. (Violation of GATT
Article XI:1)

Export restrictions
(Domestic sales
requirements)

Measures restricting the exportation or sale for export by an

enterprise of products, whether specified in terms of
particular products, in terms of volume or value of products,
or in terms of a proportion of volume or value of its local
production. (Violation of GATT Article XI:1)

Exceptional Provisions of the TRIMs Agreement

(1) Transitional

Measures specifically prohibited by the TRIMs Agreement need

period

not be eliminated immediately, although such measures must

be notified to the WTO within 90 days after the entry into force
of the TRIMs Agreement. Developed countries will have a
period of two years in which to abolish such measures; in
principle, developing countries will have five years and leastdeveloped countries will have seven years.

(2) Exceptions for Developing countries are permitted to retain TRIMs which
developing
constitute a violation of GATT Article III or XI, provided that the
countries
measures meet the conditions of GATT Article XVIII which
allows specified derogation from the GATT provisions, by virtue
of the economic development needs of developing countries.
(3) Equitable
provisions

In order to avoid damaging the competitiveness of companies

already subject to TRIMs, governments are allowed to apply
the same TRIMs to new foreign direct investment during the
transitional period described in (1) above.

The TRIMs Agreement requires Members to notify the WTO of TRIMs they operate.
As of this writing, 24 Members have notified the WTO of such measures. Figure 8-3
details the TRIMs that have been notified, many of which are local content
requirements
in
the
automotive
and
agricultural
sectors.
Outline of Notified TRIMs
Local Content

Trade
Balancing

Argentina

Auto

Auto

Barbados

Agri

Bolivia

Foreign
Exchange
Balancing

Export Restrictions

Others

Chile

Auto

Auto

Colombia

Auto, Agri

Auto, Agri

Costa Rica

Others

Cuba

Auto,Others

Cyprus

Agri

Dominica
Republic

Others

Agri, Others

Ecuador

Auto

Indonesia

Auto,Agri,Others

India

Others

Mexico

Auto

Malaysia

Auto

Pakistan

Auto, Others

Peru

Agri

Philippines

Auto

Romania

Others

Thailand

Auto,Agri,Others

Uganda

Others

Uruguay

Auto,Agri,Others

Auto

Others
Auto

Venezuela

Auto

South Africa

Auto,Agri,Others

Auto: Automotive sector

Agri: Agricultural sector
Note: Egypt and Nigeria notified that they have an incentive system for promoting
industry, but it is unclear from the notifications the type of TRIM involved, or
the targeted industries.
(3) Economic Implications)
shows direct investment around the world for 1996 and 1997. Worldwide outgoing
investment in 1997 reached $423.7 billion (an increase of about 22 percent over the
previous year) as a new record and continues to increase. Developed countries
were the driving forces behind this, accounting for about 80 percent of the world's
outgoing investment and 60 percent of incoming investment. Developing countries
reached their highest level of outgoing and incoming investment.
illustrates trends in the flow of direct investment between Japan, the United States,
and major Asian countries in 1997. In particular, the figure shows that direct
investment from Asian newly industrialized economies (NIEs) to China and ASEAN
countries is remarkable, indicating that investment climates in these areas are
improving.

Direct Investment around the World (Unit: $1 billion)

1996

1997

Amount of
outflow

Amount of
inflow

Amount of
outflow

Amount of
inflow

Total

333.6

337.6

423.7

400.5

Developed
Countries

283.5

195.4

359.2

233.1

Developing
Countries

49.2

129.8

61.1

148.9

Russia and East

Europe

1.0

12.3

3.3

18.4

Source: World Investment Report 1998 UNCTAD

Flow of Direct Investment Among Japan, the United States, and Major Asian
Countries (1997)

Note: - Asian NIEs include Korea, Taiwan, Hong Kong and Singapore.
- For statistical purposes, ASEAN4 includes Thailand, Malaysia, Philippines
and Indonesia but does not include Singapore and Brunei.
Source: Ministry of International Trade and Industry
In the short term, TRIMs provide countries with perceived benefits. Some
governments view TRIMs as a way to protect and foster domestic industry. TRIMs
are also mistakenly seen as an effective remedy for a deteriorating balance of
payments. These perceived benefits account for their frequent use in developing
countries. In the long run, however, TRIMs may well retard economic development
and weaken the economies of the countries which impose them by stifling the free
flow of investment.
Moreover, the industry using these parts is, unable to procure high-quality, lowpriced parts and components from other countries, and will be less able to produce
internationally competitive finished products. The domestic industry can hope to
achieve, at best, import substitution, but the likelihood of further development is
poor.
The consumer in the host country also suffers as a result of TRIMs. The consumer
has no choice but to spend much more on a finished product than would be
necessary under a system of liberalized imports. Since consumers placed in such a
position must pay a higher price, growth of domestic demand will stagnate. This lack
of demand also hinders the long- term economic development of domestic
industries.

2. PROBLEMS OF TRADE POLICIES AND MEASURES OF INDIVIDUAL

COUNTRIES
Under the TRIMs Agreement, member countries are required to notify the WTO
Council for Trade in Goods of their existing TRIMs. Figure 8-3 shows the general
breakdown of the TRIMs that have been reported to the Council. Most are from
developing countries who, based on their stage of economic development, have
adopted industrial policies that may, for instance, impose local content
requirements.
Countries maintaining TRIMs are expected to amend their domestic laws and
institutional rules within the appropriate transitional period. Even in the
transitional period, it is desirable to phase out the TRIMs in the spirit of the
TRIMs Agreement.
It goes without saying that Japanese companies investing overseas are expected
to increase the amount of parts they purchase locally. Indeed, the rapid
appreciation of the yen has created a powerful economic incentive for Japanese
companies to expand local procurement. Market-driven local procurement will
contribute to the local economy. Such efforts, however, should be carried out in
economically viable forms tailored to the local corporate environment, rather than
enforced through TRIMs or other policy-based regulations.
Faced with the rapid internationalization of developed countries' industrial bases,
many developing countries are intensifying their efforts to attract foreign
investment, hoping to draw on outside capital for their own industrial and
economic development. We would note in this regard a new trend that is
particularly prominent among Asian countries of relaxing investment restrictions
to create an environment that is more attractive and inviting to prospective
investors. We can say that developing countries should promote further
measures in order to attract investors.
(1) Korea
Local Content Requirements
Korea's "Import Source Diversification Programme" constitutes a de facto ban on
imports from Japan. The application for importation of items designated under the
system must include both a contract and a commitment to deliver goods approved
by the Korean Trade Agents Association. Because approval is generally difficult to
obtain, imports are effectively banned. (See Chapter 3 on Quantitative Restrictions.)
When importing parts required for the production of final products that have been
designated for production technology development by the Ministry of Trade and
Industry, manufacturers are exempt from the requirement to submit the abovementioned contracts and delivery commitments only if the following conditions are
met: (1) they submit a "parts procurement plan" to a specified certification
institution; (2) they apply to that institution for permission to import the required
parts, and

(2) Indonesia
Local Content Requirements
Since before the WTO came into force, Indonesia has imposed local content
requirements in the automotive sector (see Chapter 2 for detail). In addition,
Indonesia also requires that set percentages of domestic products, such as
soybean cake and fresh milk, be consumed. Both measures are local content
requirements falling under paragraph 1(a) of the Illustrative List annexed to the
TRIMs Agreement. There are indications that the local content requirements in fresh
milk have been abolished at the beginning of 1998, although the WTO has not been
notified of it.
The National Car Programme, which was introduced in 1996, is the measure that
gives an advantage in proportion to achievements of local content requirements. A
panel was established in June 1997 by the requests of the United States, EU, and
Japan. (For details see Chapter 2.)
(3) Thailand
Local Content Requirements
The TRIM notifications of the Thai Ministry of Industry detail a variety of minimum
local content ratios for cars and automotive products assembled in Thailand. For
example, the local content must not be less than 54 percent for passenger cars and
not less than 70 percent for motorcycles.
Under the Investment Promotion Act, the Board of Investment (BOI) sets local
content requirements for television picture tubes, motorcycle engines, diesel
engines for agricultural use, paper, dairy products and other items.
The WTO has been notified of these measures and they are not in contravention of
the agreement, but Japan must still watch that they are not expanded and that they
are eliminated on schedule. The Thai government previously announced that the
local content requirement for passenger cars (at least 54 percent mandatory) would
be eliminated in July 1998. However, it later decided to extend the period from July
1998 to January 2000 due mainly to its economic recession arising from various
reasons, including collapsed domestic industries. This decision is to be regretted
since this requirement had been expected to be eliminated before the expiry of the
transition period under the TRIMs Agreement.
(4) Malaysia
Local Content Requirements
In lieu of its previous domestic content requirements, the Malaysian Government
imposed new domestic content guidelines effective from 1 January 1992. According

to the guidelines, domestic content requirements will rise from 20 percent in early
1992 to 60 percent for passenger cars and 45 percent for commercial vehicles by
the end of 1996. (See Figure 8-6.)
Guidelines for Local Content in Malaysia
Category A Category B

Category C

31 December
1992

30%

20%

Local content requirement for

specified parts

31 December
1993

40%

30%

(same as above)

31 December
1994

50%

35%

(same as above)

31 December
1995

55%

40%

(same as above)

31 December
1996

60%

45%

(same as above)

After 1997

60%

45%

(same as above)

Category A: passenger cars with an engine size of less than 1,850cc;

Category B: passenger cars with an engine size of 1,850cc or more and less than
2,850cc and commercial vehicles with GVW (Gross Vehicle Weight) of
less than 2,500kg;
Category C: passenger cars with an engine size of 2,850cc or more and
commercial vehicles and off-road vehicles with GVW of 2,500kg or
more.
Similarly, Malaysia has had local content requirements for motorcycles since 1981;
requiring assemblers to use at least 60 percent locally produced parts. Malaysia
also has investment incentives that come with local content requirements. The
Promotion of Investment Act of 1986 requires production plans given such privileges
as "pioneer status" or "investment tax allowance" (ITAs) to meet local content
standards. Companies given "pioneer status" are relieved of 70 percent of their
income tax liability for a period of five years. The WTO has been notified of these
measures and they are not in contravention of the agreement, but Japan must still
watch that they are not expanded and that they are eliminated on schedule.
(5) India
Local Content Requirements, Import/Export Balancing Requirements, Export
Restrictions

On 12 December 1997, India announced a new automotive policy that requires

manufacturers in the automotive industry and the Ministry of Commerce to draft and
sign a memorandum of understanding (MOU) on new guidelines for the industry.
The policy has the following problems in relation to the TRIMs Agreement. First, the
policy requires that 50 percent local content be achieved within three years of the
date on which the first imported parts (CKD, SKD) were cleared through customs,
increasing to 70 percent within five years of first clearance. Second, the policy
requires that exports of automobiles or parts begin within three years of start-up,
with the possibility of restrictions on the amount of parts (CKD, SKD) that can be
imported depending on the degree to which the export requirement is met. This
amounts to an export/import balancing requirement. Even prior to this policy, India
had a history of making auto parts import licenses for companies setting up
operations within its borders conditional upon signing MOU containing local content
requirements and export/import balancing requirements--despite the lack of any
legal basis for doing so. It is certain that the new automotive policy of 1997 is
designed to institutionalize the previous administrative guidelines. In the TRIMs
Committee held in March/September 1998, some countries - including Japan, the
EU and the United States - argued that the policy would not be regarded as
compatible with the WTO Agreement. Subsequently, in October 1998 the EU
requested consultation - Japan and the United States participate in the consultation
as third parties - and the first consultation was held in December 1998. The
government of India should eliminate the policy as soon as possible.

TRIPS Agreement
Introduction
"TRIPS" redirects here. For the microprocessor, see TRIPS architecture. For the
German racing driver, see Wolfgang von Trips. For other uses, see Trip.
The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)
is an international agreement administered by the World Trade Organization (WTO) that
sets down minimum standards for many forms of intellectual property (IP) regulation as
applied to nationals of other WTO Members. [2] It was negotiated at the end of
the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) in 1994.
The TRIPS agreement introduced intellectual property law into the international trading
system for the first time and remains the most comprehensive international agreement
on intellectual property to date. In 2001, developing countries, concerned that
developed countries were insisting on an overly narrow reading of TRIPS, initiated a
round of talks that resulted in the Doha Declaration. The Doha declaration is a WTO

statement that clarifies the scope of TRIPS, stating for example that TRIPS can and
should be interpreted in light of the goal "to promote access to medicines for all."
Specifically, TRIPS requires WTO members to provide copyright rights, covering content
producers including performers, producers of sound recordings and broadcasting
organizations; geographical indications, including appellations of origin; industrial
designs;integrated circuit layout-designs; patents; new plant varieties; trademarks; trade
dress;
and
undisclosed
or confidential
information.
TRIPS
also
specifies enforcement procedures, remedies, and dispute resolution procedures.
Protection and enforcement of all intellectual property rights shall meet the objectives to
contribute to the promotion of technological innovation and to the transfer and
dissemination of technology, to the mutual advantage of producers and users of
technological knowledge and in a manner conducive to social and economic welfare,
and to a balance of rights and obligations.

Background and history

TRIPS was negotiated at the end of the Uruguay Round of the General Agreement on
Tariffs and Trade (GATT) in 1994. Its inclusion was the culmination of a program of
intenselobbying by the United States, supported by the European Union, Japan and
other developed nations. Campaigns of unilateral economic encouragement under
the Generalized System of Preferences and coercion under Section 301 of the Trade
Act played an important role in defeating competing policy positions that were favored
by developing countries, most notably Korea and Brazil, but also including Thailand,
India and Caribbean Basin states. In turn, the United States strategy of linking trade
policy to intellectual property standards can be traced back to the entrepreneurship of
senior management at Pfizer in the early 1980s, who mobilized corporations in the
United States and made maximizing intellectual property privileges the number one
priority of trade policy in the United States (Braithwaite and Drahos, 2000, Chapter 7).
After the Uruguay round, the GATT became the basis for the establishment of the World
Trade Organization. Because ratification of TRIPS is a compulsory requirement of World
Trade Organization membership, any country seeking to obtain easy access to the
numerous international markets opened by the World Trade Organization must enact
the strict intellectual property laws mandated by TRIPS. For this reason, TRIPS is the

most important multilateral instrument for the globalization of intellectual property laws.
States like Russia and China that were very unlikely to join the Berne Convention have
found the prospect of WTO membership a powerful enticement.
Furthermore, unlike other agreements on intellectual property, TRIPS has a powerful
enforcement mechanism. States can be disciplined through the WTO's dispute
settlementmechanism.

The requirements of TRIPS

TRIPS requires member states to provide strong protection for intellectual property
rights. For example, under TRIPS:

Copyright terms must extend at least 20 years, unless based on the life of
the author. (Art. 12 and 14)

Copyright must be granted automatically, and not based upon

any "formality," such as registrations, as specified in the Berne Convention. (Art. 9)

Computer programs must be regarded as "literary works" under copyright law

and receive the same terms of protection.

National exceptions to copyright (such as "fair use" in the United States) are
constrained by the Berne three-step test

Patents must be granted for "inventions" in all "fields of technology" provided they
meet all other patentability requirements (although exceptions for certain public
interests are allowed (Art. 27.2 and 27.3) and must be enforceable for at least 20
years (Art 33).

Exceptions to exclusive rights must be limited, provided that a normal exploitation

of the work (Art. 13) and normal exploitation of the patent (Art 30) is not in conflict.

No unreasonable prejudice to the legitimate interests of the right holders of

computer programs and patents is allowed.

Legitimate interests of third parties have to be taken into account by patent rights
(Art 30).

In each state, intellectual property laws may not offer any benefits to local
citizens which are not available to citizens of other TRIPS signatories under the
principle of national treatment (with certain limited exceptions, Art. 3 and 5). TRIPS
also has a most favored nation clause.

Many of the TRIPS provisions on copyright were copied from the Berne Convention for
the Protection of Literary and Artistic Works and many of its trademark and patent
provisions were modeled on the Paris Convention for the Protection of Industrial
Property.

Access to essential medicines

The most visible conflict has been over AIDS drugs in Africa. Despite the role that
patents have played in maintaining higher drug costs for public health programs across
Africa, this controversy has not led to a revision of TRIPs. Instead, an interpretive
statement, the Doha Declaration, was issued in November 2001, which indicated that
TRIPs should not prevent states from dealing with public health crises. After
Doha, PhRMA, the United States and to a lesser extent other developed nations began
working to minimize the effect of the declaration.
A 2003 agreement loosened the domestic market requirement, and allows developing
countries to export to other countries where there is a national health problem as long
as drugs exported are not part of a commercial or industrial policy. Drugs exported
under such a regime may be packaged or colored differently in order to prevent them
from prejudicing markets in the developed world.
In 2003, the Bush administration also changed its position, concluding that generic
treatments might in fact be a component of an effective strategy to combat HIV. Bush
created thePEPFAR program, which received $15 billion from 20032007, and was
reauthorized in 2008 for $48 billion over the next five years. Despite wavering on the
issue of compulsory licensing, PEPFAR began to distribute generic drugs in 2004-5.

Software and business method patents

Another controversy has been over the TRIPS Article 27 requirements for patentability
"in all fields of technology", and whether or not this necessitates the granting
of software andbusiness method patents.
Implementation in developing countries
The obligations under TRIPS apply equally to all member states, however developing
countries were allowed extra time to implement the applicable changes to their national
laws, in two tiers of transition according to their level of development. The transition
period for developing countries expired in 2005. The transition period for least
developed countries to implement TRIPS was extended to 2013, and until 1 January
2016 for pharmaceutical patents, with the possibility of further extension.

This is likely caused by the lack of legal and technical expertise needed to draft
legislation that implements flexibilities, which has often led to developing countries
directly copying developed country IP legislation, or relying on technical assistance from
the World Intellectual Property Organization (WIPO), which, according to critics such
as Cory Doctorow, encourages them to implement stronger intellectual property
monopolies.
Banerjee and Nayak shows that TRIPS has a positive effect on R&D expenditure of
Indian pharmaceutical firms.

Post-TRIPS expansion
In addition to the baseline intellectual property standards created by the TRIPS
agreement, many nations have engaged in bilateral agreements to adopt a higher
standard of protection. These collection of standards, known as TRIPS+ or TRIPS-Plus,
can take many forms. General objectives of these agreements include:

The
creation
of anti-circumvention
laws to
protect Digital
Rights
Management systems. This was achieved through the 1996 World Intellectual
Property Organization Copyright Treaty (WIPO Treaty) and the WIPO Performances
and Phonograms Treaty.
More stringent restrictions on compulsory licenses for patents.

More aggressive patent enforcement. This effort has been observed more
broadly in proposals for WIPO and European Union rules on intellectual property
enforcement. The 2001 EU Copyright Directive was to implement the 1996 WIPO
Copyright Treaty.

The campaign for the creation of a WIPO Broadcasting Treaty that would give
broadcasters (and possibly webcasters) exclusive rights over the copies of works
they have distributed.

Panel reports
According to WTO 10th Anniversary, Highlights of the first decade, Annual Report
2005 page 142, in the first ten years, 25 complaints have been lodged leading to the
panel reports and appellate body reports on TRIPS listed below.

The WTO website has a gateway to all TRIPS disputes (including those that did not lead
to panel reports) here

2005 Panel Report:

European Communities - Protection of Trademarks and Geographical

Indications for Agricultural Products and Foodstuffs.
2000 Panel Report: Part 2 and 2000 Appellate Body Report

Canada - Term of Patent Protection.

2000 Panel Report, Part 1: and Part 2

United States - Section 110(5) of the US Copyright Act.

2000 Panel Report:

Canada - Patent Protection of Pharmaceutical Products.

2001 Panel Report: and 2002 Appellate Body Report

United States - Section 211 Omnibus Appropriations Act of 1998.

1998 Panel Report:

India - Patent Protection for Pharmaceutical and Agricultural Chemical

Products.
1998 Panel Report:

Indonesia - Certain Measures Affecting the Automobile Industry.

Criticism
Since TRIPS came into force it has received a growing level of criticism from developing
countries, academics, and non-governmental organizations. Some of this criticism is
against the WTO as a whole, but many advocates of trade liberalization also regard
TRIPS as bad policy. TRIPS's wealth concentration effects (moving money from people
in developing countries to copyright and patent owners in developed countries) and its
imposition of artificial scarcity on the citizens of countries that would otherwise have had
weaker intellectual property laws, are common bases for such criticisms.

Peter Drahos writes that "It was an accepted part of international commercial morality
that states would design domestic intellectual property law to suit their own economic
circumstances. States made sure that existing international intellectual property
agreements gave them plenty of latitude to do so."
Daniele Archibugi and Andrea Filippetti argue that the importance of TRIPS in the
process of generation and diffusion of knowledge and innovation has been
overestimated by both their supporters and their detractors. Claude Henry and Joseph
E. Stiglitz argue that the current intellectual property global regime may impede both
innovation and dissemination, and suggest reforms to foster the global dissemination of
innovation and sustainable development.

List of parties to international treaties protecting rights related to

copyright
Below is a list of countries which have signed and ratified one or more international
treaties protecting rights related to copyright. Related rights protect performers,
producers of sound recordings (phonograms) and broadcasting organisations. In some
countries these rights are known simply as copyright, while other countries distinguish
them from authors' rights: in either case, their international protection is distinct from the
protection of literary and artistic works under the Berne Convention and other treaties.
List of parties to international copyright treaties

Date

Short

Long name

name

Place

Date

force)

Rome Convention for the Protection of Performers,

Rome

(into

Producers of Phonograms and Broadcasting

1961-10-26

Geneva

1971-10-29 1973-04-

Organisations

Phonograms Convention for the Protection of Producers of

Phonograms Against Unauthorized Duplication of

1964-05-

Rome

18[1]

Date

Short

Long name

name

Place

Date

force)

17[2]

Their Phonograms

Convention Relating to the Distribution of

Satellites

ProgrammeCarrying Signals Transmitted by

Brussels

1974-05-21

Satellite

TRIPS

WPPT

(into

Agreement on Trade-Related Aspects of Intellectual Marrakec

Property Rights

WIPO Performances and Phonograms Treaty

Geneva

1994-04-15

1996-12-20

1979-0825[3]

1995-0101[4]

2002-0520[5]

List
The list below was taken from details supplied by WIPO and the WTO (see references):
they are correct as of 2012-10-15, and include some accessions after that date. Dates
quoted are the date on which the treaty came into effect for a given country.

Country

Rome

Phonogram
s

Satellites

TRIPS

WPPT

Afghanistan

Albania

Algeria

Andorra

2000-0901

2007-0422

2004-0525

2001-06-26

observer

Australia

Austria

31

1992-0930

1973-0609

20

Antigua and Barbuda

2003-01-

08

Armenia

2002-05-

observer

02

2000-09-

1992-03-

Angola

Argentina

observer

1973-06-30

2003-01-31 1993-12-13

1974-06-22 1990-10-26

1982-08-21 1982-08-06

1996-1123

1995-0101

1995-01-

2002-05-

01

20

2003-02-

2005-03-

05

06

1995-01-

2007-07-

01

26

1995-01-

2010-03-

01

14

Azerbaijan

Bahamas

Bahrain

Bangladesh

Barbados

Belarus

Belgium

2005-1008

2006-0118

1983-0918

2003-0527

1999-1002

2006-04-

2001-09-01

observer

observer

2007-05-01

1995-01-

2005-12-

01

15

1983-07-29

2003-04-17

Belize

Benin

Bhutan

Bolivia

1993-11-

1995-0101

1995-0101

11

observer

1995-01-

2006-08-

01

30

1995-0101

1996-02-

2006-04-

22

16

observer

1995-09-

24

Bosnia and Herzegovina

Botswana

Brazil

Brunei

Bulgaria

Burkina Faso

2009-0519

1965-0929

1995-0831

1988-0114

12

2009-05-25 1992-03-06

1975-11-28

1995-09-06

1988-01-30

Burundi

Cambodia

Cameroon

observer

2009-1125

1995-05-

2005-01-

31

27

1995-0101

1995-0101

1996-12-

2002-05-

01

20

1995-06-

2002-05-

03

20

1995-0723

2004-1013

1995-1213

Canada

Cape Verde

1998-0604

1997-0703

Central African Republic

Chad

Chile

China

Colombia

1974-0905

1976-0917

1977-03-24 2011-06-08

1993-04-30

1994-05-16

Comoros

Congo, Democratic Republic

1977-11-29

Congo, Republic

1964-0518

1995-0101

2008-0723

1995-0531

1996-1019

1995-01-

2002-05-

01

20

2001-12-

2007-06-

11

09

1995-04-

2002-05-

30

20

observer

1997-0101

1997-0327

Costa Rica

Cte d'Ivoire

Croatia

Cuba

Cyprus

Czech Republic

Denmark

Djibouti

Dominica

Dominican Republic

1971-0909

2000-0420

2009-0617

1993-0101

1965-0923

1999-1109

1987-0127

1982-06-17 1999-06-25

2000-04-20 1991-10-08

1993-01-01

1977-03-24

1995-01-

2002-05-

01

20

1995-0101

2000-11-

2002-05-

30

20

1995-0420

1995-07-

2005-12-

30

02

1995-01-

2002-05-

01

20

1995-01-

2010-03-

01

14

1995-0531

1995-0101

1995-03-

2006-01-

09

10

Ecuador

Egypt

El Salvador

1964-0518

1979-0629

1974-09-14

1979-02-09 2008-07-22

1996-01-

2002-05-

21

20

1995-0630

1995-05-

2002-05-

07

20

Equatorial Guinea

observer

Eritrea

Ethiopia

observer

1999-11-

2010-03-

13

14

1995-01-

2010-03-

01

14

Estonia

European Union

Fiji

Finland

France

2000-0428

1972-0411

1983-1021

1987-0703

2000-05-28

1973-04-18

1973-04-18

1973-04-18

1996-0114

1995-01-

2010-03-

01

14

1995-01-

2010-03-

01

14

Gabon

Gambia

Georgia

Germany

Ghana

Greece

Grenada

Guatemala

2004-0814

1966-1021

1993-0106

1977-0114

1974-05-18 1979-08-25

1994-02-09 1991-10-22

1977-02-01

Guinea

Guinea-Bissau

1995-01-

2002-05-

01

20

1996-1023

2000-06-

2002-05-

14

20

1995-01-

2010-03-

01

14

1995-0101

1995-01-

2010-03-

01

14

1996-0222

1995-07-

2003-01-

21

08

1995-10-

2002-05-

25

25

1995-0531

Haiti

Honduras

Hong Kong

Hungary

Iceland

1990-0216

1995-0210

1994-0615

1990-03-06 2008-04-07

1975-05-28

India

1975-02-12

Indonesia

Iran

Iraq

Ireland

Israel

1979-0919

2002-12-

1996-0130

1995-01-

2002-05-

01

20

1995-01-

2008-10-

01

01

1995-01-

2002-05-

01

20

1995-0101

1995-0101

1995-01-

2005-02-

01

15

observer

observer

1995-01-

2010-03-

01

14

1995-04-

1978-05-01

30

Italy

Jamaica

Japan

1975-0408

1994-0127

1989-1026

21

1977-03-24 1981-07-07

1994-01-11

2000-01-12

1978-10-14

2010-03-

01

14

1995-05-

2002-06-

09

12

1995-01-

2002-10-

01

09

2000-04-

2004-05-

11

24

Jordan

Kazakhstan

2001-08-03

Kenya

1976-04-21 1979-08-25

Kiribati

1995-01-

2009-03-

19

01

18

1995-01-

Korea, Democratic People's

Republic

Korea, Republic

Kuwait

2009-0318

1987-10-10

1995-01-

observer

2012-03[6]

1995-0101

2004-1112

01

Kyrgyzstan

Laos

Latvia

Lebanon

Lesotho

2003-0813

1999-0820

1997-0812

1990-0126

2002-10-12

1997-08-23

1998-12-

2002-08-

20

15

observer

1999-02-

2002-05-

10

20

observer

1995-0531

Liberia

2005-12-16

observer

Libya

observer

1995-09-

2007-04-

01

30

2001-05-

2002-05-

31

20

1995-01-

2010-03-

01

14

Liechtenstein

Lithuania

Luxembourg

1999-1012

1999-0722

1976-0225

1999-10-12

2000-01-27

1976-03-08

Macau

Macedonia

1998-0302

1998-03-02 1991-11-17

Madagascar

Malawi

Malaysia

Maldives

Mali

Malta

Mauritania

Mauritius

1995-0101

2003-04-

2005-03-

04

20

1995-1117

1995-0531

1995-01-

2012-12-

01

27

1995-0531

1995-05-

2002-05-

31

20

1995-01-

2010-03-

01

14

1995-0531

1995-0101

Mexico

Federated States of Micronesia

Moldova

Monaco

Mongolia

Montenegro

1964-0518

1995-1205

1985-1206

2006-0603

1973-12-21 1979-08-25

2000-07-17 2008-10-28

1974-12-02

2006-06-03 2006-06-03

Morocco

1983-06-30

Mozambique

Myanmar

Namibia

1995-01-

2002-05-

01

20

2001-07-

2002-05-

26

20

1997-01-

2002-10-

29

25

2012-04-

2006-06-

29

03

1995-01-

2011-07-

01

20

1995-0826

1995-0101

1995-0101

Nauru

Nepal

Netherlands

New Zealand

Nicaragua

Niger

Nigeria

Norway

1993-1007

2000-0810

1964-0518

1993-1029

1978-0710

1993-10-12

1976-08-13

2000-08-10 1979-08-25

1978-08-01

Oman

2008-03-18

Pakistan

2004-0423

1995-01-

2010-03-

01

14

1995-0101

1995-09-

2003-03-

03

06

1996-1213

1995-0101

1995-0101

2000-11-

2005-09-

09

20

1995-0101

Palau

Panama

Papua New Guinea

Paraguay

Peru

Philippines

Poland

Portugal

Qatar

Romania

1983-0902

1970-0226

1985-0807

1984-0925

1997-0613

2002-0717

1998-1022

1974-06-29 1985-09-25

1979-02-13

1985-08-24 1985-08-07

1996-03-11

1998-10-01

1997-09-

2002-05-

06

20

1996-0609

1995-01-

2002-05-

01

20

1995-01-

2002-07-

01

18

1995-01-

2002-10-

01

04

1995-07-

2003-10-

01

21

1995-01-

2010-03-

01

14

1996-01-

2005-10-

13

28

1995-01-

2002-05-

01

20

Russian Federation

2003-0526

1995-03-13 1989-01-20

Rwanda

2001-07-25

Saint Kitts and Nevis

Saint Lucia

1996-0817

2001-04-02

2012-08-

2009-02-

22

05

1996-0522

1996-0221

1995-01-

2002-05-

01

20

1995-01-

2011-02-

01

12

St. Vincent & Grenadines

Samoa

San Marino

So Tom and Prncipe

observer

Saudi Arabia

Senegal

Serbia

2003-06-

2003-06-10 1992-04-27

2012-0510

2005-1211

1995-01-

2002-05-

01

20

observer

2003-06-

10

13

Seychelles

Sierra Leone

Singapore

2005-04-27

Slovakia

Slovenia

1993-0101

1996-1009

1993-01-01

1996-10-15 1991-06-25

Solomon Islands

Somalia

South Africa

Spain

Sri Lanka

1991-1114

1974-08-24

observer

1995-0723

1995-01-

2005-04-

01

17

1995-01-

2002-05-

01

20

1995-07-

2002-05-

30

20

1996-0726

1995-0101

1995-01-

2010-03-

01

14

1995-0101

Sudan

Suriname

Swaziland

Sweden

Switzerland

Syria

Taiwan (Chinese Taipei)

Tajikistan

1964-0518

1993-0924

2006-0513

2008-0519

1973-04-18

1993-09-30 1993-09-24

Tanzania

Thailand

observer

1995-0101

1995-0101

1995-01-

2010-03-

01

14

1995-07-

2008-07-

01

01

observer

2002-0101

observer

1995-0101

1995-0101

2011-0824

Timor Leste

Togo

2003-0610

2003-06-10 2003-06-10

Tonga

Trinidad and Tobago

1988-10-01 1996-11-01

Tunisia

Turkey

2004-0408

1995-05-

2003-05-

31

21

2007-0727

1995-03-

2008-11-

01

28

1995-0329

1995-03-

2008-11-

26

28

Turkmenistan

Tuvalu

Uganda

Ukraine

United Arab Emirates

2002-0612

2005-0114

2000-02-18

1995-0101

2008-05-

2002-05-

16

20

1996-04-

2005-06-

10

09

United Kingdom

United States of America

Uruguay

1964-0518

1977-0704

1973-04-18

1974-03-10 1985-03-07

1983-01-18

Uzbekistan

Vanuatu

Vatican City

1977-07-18

Venezuela

Vietnam

1996-0130

2007-0301

1982-11-18

2005-07-06 2006-01-12

Yemen

Zambia

Zimbabwe

1995-01-

2010-03-

01

14

1995-01-

2002-05-

01

20

1995-01-

2008-08-

01

28

observer

2012-0824

observer

1995-0101

2007-0111

observer

1995-0101

1995-0305