Unfavorable Issues

2.2CERTAIN OTHER UNCENSORED ISSUES

There are several clauses in each of the above agreements; where there has been no consensus arrived, which means that these are still in their conceptual and drafting stages. Some of the agreements include Labor Standards, Trade and Environment, Trade and Investment, Trade and Competition and Transparency in Procurement made by the Government.

Labor Standards is intended to impose certain labor standards and norms against labor exploitation of workers in organizations. Such standards results in the prohibition of certain products and services exports to the developed countries thus causing severe damage.

Trade and Environment it intends to protect the global environment by stipulating standards on production

The WTO had both favorable and unfavorable impacts on the Indian economy. It can assess on a basic and general concept:.

3.1 Favorable impacts

Increase in export earnings

An increment in export earnings can be viewed can be viewed from growth in service and merchandise:

• Growth in service exports- the WTO provided GATS, which was beneficial to countries like India. It extended the multilateral trading system to the service sector in that GATT provides such a system in the merchandise trade.
• Growth in merchandise exports- the formation of WTO led to the increment in exports in developing countries simply because it reduced tariffs and non-tariff trade barriers. India’s export merchandise in the 1995 to 2009 it increased from US$32 billion to US$185billion.
• Agricultural exports- prices of agricultural products increased on the international market due to the decrement of trade barriers and domestic subsidies. Hence hopes to also gain from this form of higher export earnings from

As a member of the WTO, India has to abide by the stipulations stated in TRIPs.
However, the agreement on TRIPs goes against the Indian Patent act of 1970, in the following ways:
• Pharmaceutical sector:

Only process patents are granted to chemicals, medicine and drugs under the Indian patent act of 1970. Henceforth the company can legally manufacture once it has a product patent. So Indian pharmacies can sell good quality medication at lower prices. However under the TRIPs agreement, the product patents will also be granted but that will raise the prices of medication. Thus keeping them of reach for poor people, mostly drugs manufactured in India are off patents and so it will be less affected.

• Agriculture

Since the agreement of TRIPs extends to agriculture, it will also have an implication on the Indian agriculture. The MNG with their huge financial resources may also take over and seed production and will eventually take over food production. Since a large majority of Indian population is dependent on agriculture for their livelihood, these developments will have serious implications.

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