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Comparative Politics and Government

Notes Perceiving the WIPO protection as inadequate, the developed countries launched a strong initiative
to create an extended and tighter international system for the protection of intellectual property
rights. In the final outcome, the scope of the Uruguay Round has been expanded to increase the life
of privileges granted or rights conferred, to enlarge the geographical spread and to create an
enforcement mechanism.
Investment Measures

The investment measures embodied in the agreement on Trade Related Investment Measures (TRIMS)
listed a comprehensive set of measures such as not permitting practices like local content requirements,
export obligations, restrictions on imports of certain raw materials or components. At the same time,
existing measures will have to be notified to the designated international authority and will have to
be phased out over two years in the case of developed countries and five years in the case of less
developed countries. Exception to this rule was permitted only if the country in question is faced
with a serious balance of payments problem.

What do you understand by the term ‘Economic Globalisation’?

Dispute Settlement Mechanism

The creation of an integrated dispute settlement body is yet another major achievement of the Uruguay
Round meeting the demands of the less developed countries. Now thanks to the creation of the
dispute settlement body, there are firm time limits which apply to the various stages of dispute
settlement process. What, however, disadvantages the less developed countries is the requirement
that calls for a consensus in respect of rejecting a panel report. However, what advantages the less
developed countries is that no requirement of a consensus is called for in accepting the report of the
dispute settlement body. In this way these new procedures are seen to be in the interests of smaller
countries bringing their complaints against larger countries.

Creation of World Trade Organisation
The creation of World Trade Organisation (WTO) is part and parcel of the multilateral agreement
arrived at the Uruguay Round. Its main purpose is to facilitate implementation, administration and
operation of GAIT 1994. In effect, it gives permanence to GATT. Two main distinctive features of
WTO are: (1) nations seeking admission to WTO must accept all decisions from around as a package
which includes agreements on trade in services, intellectual property rights and trade related
investment measures; and (2) nations acceding to WTO are required to be bound by the new integrated
dispute settlement mechanism encompassing the three areas of goods, services and technology.
WTO and the Less Developed Countries

Most developing countries have accepted the WTO regime though reluctantly. The debate is still
raging in many countries over the consequences of their signing the WTO treaty. The critical question
that is debated is what are the risks and gains from the WTO regime for the developing countries.
Some general issues have been highlighted. They are as follows:
Agriculture

One area where the predominantly agricultural countries of the less developed world are jubilant is
gaining major benefits in the agricultural sector. Successes in reining agricultural support programmes
in the industrially advanced countries and regions such as United States, Japan and the European
Union are expected to render net gains to less developed countries’ agricultural exports for the
comparative and competitive advantage these agricultural countries enjoy. However, at the same

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