India is now more strategic in its trade policies: Tai
In News:
- S. Trade Rep. (USTR) Katherine Tai said she expected India to engage in "intentionality" at the 12th ministerial conference (MC12) of the WTO.
What's in Today's Article:
- World Trade Organization (WTO) Structure and functions and TRIPS
- News Summary
In Focus: World Trade Organization (WTO)
- WTO is the sole global organization that deals with rules for commerce between countries.
- The aim is to assist the producers of goods as well as services, entrepreneurs and importers manage their business.
- WTO is a place that allows governments to discuss trade agreements. It also serves as a venue to resolve trade disputes.
- It was founded through the Uruguay Round negotiations (1986-94) and has its headquarters in Geneva.
Structure
- The WTO is comprised of 164 countries which account for 98% of global trade. There are 25 countries that are in negotiations to join.
- The decisions are made by the whole membership. The majority of the time, this is done through consensus.
- The WTO's most important decision decision-making organ is called the Ministerial conference which usually meets every two years.
Functions
- In charge of trade agreements
- Serving as a venue to conduct trade discussions
- Settlement of trade dispute
- Reviewing trade policies in the nation's trade policy
- Strengthening the trade capabilities of emerging economies
Trade Related Aspects of Intellectual Property Rights (TRIPS)
- The WTO Agreement on TRIPS is the most comprehensive multilateral treaty on Intellectual Property (IP).
- The agreement came into force on 1 January 1995. . It establishes basic standards for the security and protection of rights to intellectual property in member states.
- Intellectual Property Rights are the rights given to persons/agencies for their creativity/innovations.
- They usually grant the creator an exclusive rights over the use of their creation for a specified amount of time.
Area that is covered by the agreement
- The domains of intellectual property it encompasses include:
- copyright and other rights (i.e. the rights of producers, performers of sound recordings, as well as broadcasting companies);
- trademarks, including service marks;
- Geographical indications and appellations that include the place of origin;
- industrial designs;
- Patents, which include protection for the protection of
- the designs of the layouts of integrated circuits and
- unreleased information such as tests and trade secrets results.
News Summary
- With just a few days until the WTO is scheduled to hold its 12th ministerial meeting, USTR, Katherine Tai stated that she anticipates India to participate with a sense of purpose at the meeting.
India's policy towards trade and the WTO
- Many critics draw attention to the issue that India didn't have an impressive track record of making a difference to the ministerial conferences of the WTO.
- According to the report, India is a tough negotiator. Its stance frequently leaves no room for negotiations.
- But, many analysts believe India is in control of its own thoughts and is becoming more proactive in regards to trade.
The most important issues in of the MC12
- TRIPS (Trade Related Intellectual Property Rights) waiver for COVID-19 vaccinations and therapeutics
- The possibility of a waiver of certain restrictions on intellectual property rights for COVID-19 vaccines was discussed between South Africa, India, the United States, and the European Union.
- South Africa and India tabled the agreement in front of the World Trade Organization in October 2020.
- Duty on e-commerce
- India would like customs duties to be that are applied to e-commerce.
- It is said that the moratorium that is in place from 1998 has negatively the developing world by reducing their revenues.
- In the early days of e-commerce, it was the beginning of its development In September 1998, the work programme for online commerce was adopted at the General Council of the WTO.
- As part of the program, WTO members agreed to refrain from imposition of customs duties regarding electronic data transmission.
- This moratorium on customs duty has been renewed on a regular basis at every Ministerial Conference.
- Due to the rapid growth of e-commerce it is becoming increasingly likely that emerging countries, such as India are becoming importers and therefore losing in Customs duties.
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