A Term Paper ON

WTO and Developing Countries

Course Name# Theory and Practice of International Business Course No.# EIB-510

Prepared for: Professor (Dr) Khondoker Bazlul Hoque Professor Department of International Business

Prepared by: Tareq Islam Shuvo (80117039)

7th Batch, Department of International Business EMBA Program

University of Dhaka, Dhaka

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August 12, 2011.

WTO and DEVELOPING COUNTRIES

August 12, 2011

Tareq Islam Shuvo, ID# 80117039 7th Batch, EMBA

Professor (Dr) Khondoker Bazlul Hoque Professor Department of International Business Dhaka University, Dhaka

Subject: Submission of Term Paper. Sir, Here I have the pleasure to present a term paper on WTO and DEVELOPING COUNTRIES a study on one of the most crucial issues in the field of international business of these days. This report is as a part of course study. I am very much delighted to get the opportunity and to get close to the WTO activity. That also enriches me to have some critical knowledge of WTO agreements and its impact of developing countries. I have devoted our level best effort to make the report a best one and up to your satisfactory level. I shall remain ever grateful to you for rendering us the opportunity to work in such an important & dynamic field. If you need any additional information regarding this report, I shall be right before you for all the necessary interpretation and defense. Unconditional thanks to you. Sincerely,

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Tareq Islam Shuvo,

WTO and DEVELOPING COUNTRIES

Table of Content Letter of Transmittal Table of Content Executive Summary

1. Introduction 1.1. Statement of Research Problem 1.2. Scope and objectives of the Study 1.3. Methodology of the Study 1.4. Limitations of the Study

2. Basics of WTO 2.1. About WTO & History 2.2. Purpose 2.3. Summits

3. WTO and Developing Countries 3.1. The impact of WTO on Developing Countries 3.2. Change in Strategy and Approach

4. Conclusion Bibliography Appendices

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Executive Summary World Trade Organization (WTO), international body that promotes and enforces the provisions of trade laws and regulations. The World Trade Organization has the authority to administer and police new and existing free trade agreements, to oversee world trade practices, and to settle trade disputes among member states. The WTO was established in 1994 when the members of the General Agreement on Tariffs and Trade (GATT), a treaty and international trade organization, signed a new trade pact. The WTO was created to replace GATT. Since its creation, the WTO has attracted criticism from those concerned about free trade and economic globalization. Opponents of the WTO argue that the organization is too powerful because it can declare the laws and regulations of sovereign nations in violation of trade rules, in effect pressuring nations to change these laws. Critics also charge that WTO trade rules do not sufficiently protect workers rights, the environment, or human health. Some groups charge that the WTO lacks democratic accountability because its hearings on trade disputes are closed to the public and press. WTO officials have dismissed arguments that the organization is undemocratic, noting that its member nations, most of which are democracies, wrote the WTO rules and selected its leadership. WTO supporters argue that it plays a critical role in helping expand world trade and raise living standards around the world.

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1.1. Statement of the Research Problem WTO is the organization which drives and facilitates international business. As a part of international business, Bangladesh should take and aware of WTO initiatives and thus respond accordingly. The concerned persons on international business should know the WTO terms and agreements along with its impact on Bangladesh.

1.2. Scope and Objectives of the Study The main objective of the study is to provide basic knowledge on WTO terms and agreements in our country s perspective. There are some other secondary objectives associated with the primary objective. These are, -to gather knowledge on WTO Summits and their outcome and -to become aware on WTO impacts on developing countries The isnternational business practices, WTO agreements and related institutions are the scope of this study. This report also focused the interests of developing countries. The only focus of this report is to describe the existing agreements and its impact on developing countries.

1.3. Methodology Sources of Information This report is being prepared mainly on the basis of secondary information. But all the secondary information is being justified by different internet based sources. So, secondary information from websites, journals, govt. policies, brochures, rules and regulations are the main sources of information. Study Approach This study was the combination of descriptive information. We tried to arrange the information sequentially and chapter wise. I have covered some additional areas to attain the secondary objectives as well.

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Data Collection Secondary sources were used for collection of necessary information. Secondary information was collected from various reports, newspapers, books, journals and websites. Analysis Plan Depending on the specific objective to be met sequence of the process has been determined and stated. This made the task simple.

1.4. Limitation of the study This report did not draw any recommendation or suggest anything in the process. I also avoided any analysis. As this is a very theory based report expert people may find nothing new in this report.

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2. Basics of WTO

2.1 About WTO World Trade Organization (WTO), international body that promotes and enforces the provisions of trade laws and regulations. The World Trade Organization has the authority to administer and police new and existing free trade agreements, to oversee world trade practices, and to settle trade disputes among member states. The WTO was established in 1994 when the members of the General Agreement on Tariffs and Trade (GATT), a treaty and international trade organization, signed a new trade pact. The WTO was created to replace GATT. The WTO began operation on January 1, 1995. GATT and the WTO coexisted until December 1995, when the members of GATT met for the last time. Although the WTO replaced GATT, the trade agreements established by GATT in 1994 are part of the WTO agreement. However, the WTO has a significantly broader scope than GATT. GATT regulated trade in merchandise goods. The WTO expanded the GATT agreement to include trade in services, such as international telephone service, and protections for intellectual property that is, creative works that can be protected legally, such as sound recordings and computer programs. The WTO is also a formally structured organization whose rules are legally binding on its member states. The organization provides a framework for international trade law. Members can refer trade disputes to the WTO where a dispute panel composed of WTO officials serves as arbitrator. Members can appeal this panel s rulings to a WTO appellate body whose decisions are final. Disputes must be resolved within the time limits set by WTO rules. All of the 128 nations that were contracting parties to the new GATT pact at the end of 1994 became members of the WTO upon ratifying the GATT pact. By 2005 the WTO had 149 members. Another 32 nations and 7 organizations enjoyed observer status. Member and observer nations account for more than 97 percent of world trade. The WTO is based in Geneva, Switzerland, and is controlled by a General Council made up of member states ambassadors who also serve on various subsidiary and specialist committees. The ministerial conference, which meets every two years and appoints the WTO s director-general, oversees the General Council. Since its creation, the WTO has attracted criticism from those concerned about free trade and economic globalization. Opponents of the WTO argue that the organization is too powerful because it can declare the laws and regulations of sovereign nations in violation of trade rules, in effect pressuring nations to change these laws. Critics also charge that WTO trade rules do not sufficiently protect workers rights, the environment, or human health. Some groups charge that the WTO lacks democratic accountability because its hearings on trade disputes are closed to the public and press. WTO officials have dismissed arguments that the organization is undemocratic, noting that its member nations, most of which are democracies, wrote the WTO rules

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and selected its leadership. WTO supporters argue that it plays a critical role in helping expand world trade and raise living standards around the world.

2.2 Purpose of WTO 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: 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. The MFN rule requires that a WTO member must apply the same conditions on all trade with other WTO members, i.e. a WTO member has to grant the most favorable conditions under which it allows trade in a certain product type to all other WTO members. "Grant someone a special favour and you have to do the same for all other WTO members." National treatment means that imported goods should be treated no less favorably than domestically produced goods (at least after the foreign goods have entered the market) and was introduced to tackle non-tariff barriers to trade (e.g. technical standards, security standards et al. discriminating against imported goods). 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. 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. 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. These internal transparency requirements are supplemented and facilitated by periodic country-specific reports (trade policy reviews) through the Trade Policy Review Mechanism (TPRM). The WTO system tries
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also to improve predictability and stability, discouraging the use of quotas and other measures used to set limits on quantities of imports. Safety valves. In specific circumstances, governments are able to restrict trade. There are three types of provisions in this direction: articles allowing for the use of trade measures to attain noneconomic objectives; articles aimed at ensuring "fair competition"; and provisions permitting intervention in trade for economic reasons. Exceptions to the MFN principle also allow for preferential treatment of developed countries, regional free trade areas and customs unions.

2.3. Summits The WTO s Hong Kong Declaration Although a face-saving deal was reached in Hong Kong on 18 December 2005, the WTO and the global trade system remain in crisis. The Hong Kong agreement contains proposals that will further threaten the global environment and the livelihoods of the world's poorest people. Non-Agricultural market access The WTO's current trade negotiations on NAMA have been reaffirmed. Under pressure from the EU and its allies, governments have agreed to an extreme form of liberalizations by introducing a Swiss formula for tariff reductions on all manufactured goods and natural resources. Developing countries risk having to cut their tariffs drastically. The negotiations still include proposals from various countries to completely liberalize markets in forest products, fish and fish products, gems and precious metals, primary aluminum and oil, with no mention of the potential and possibly widespread environmental and social impacts that such liberalization could have. A specific reference to sectoral negotiations has been reinserted in the final Declaration, presumably by the US and Canada, who had previously objected to the fact that this text was missing. However, the text does direct governments to determine whether sectoral negotiations have sufficient support to continue, thus opening a door for the removal of these natural resource sectors from the sectoral aspect of the NAMA negotiations (meaning that they would not have to be completely liberalized). Negotiations to 'reduce or eliminate' environmental and health standards (known as non- tariff barriers, NTBs, in the WTO) will also be intensified. Current notifications include a breathtaking array of challenges to labeling and certification requirements, national standards and restrictions, export restrictions, restrictions on foreign
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investment and measures to promote local economic development. The sectors covered include mineral products, automobiles, chemicals, electronics, environmental goods, fertilisers, fish and fish products, food, footwear, forest/wood products, mineral products and petroleum oils, shrimp, and textiles and leather goods. Fisheries Fisheries remain a proposed sectoral negotiation under NAMA, supported by countries including New Zealand, Norway and Iceland. The fact that increased liberalization in this sector could further damage already seriously depleted wild fish stocks are not taken into account. The world s supply of fish is nearly exhausted: over 60% of wild fish stocks have been fully exploited, overexploited, or depleted, and a further 10% are recovering. Nearly 40 million people rely on artisanal fishing for their food and livelihoods worldwide, but the potential impact on them of greater liberalization in fisheries is also ignored by most countries. However, Japan and South Korea have opposed and the EU now does not support the fisheries sectoral, meaning that it could be removed from negotiations since it does not enjoy sufficient support. However, the agreed intensification of negotiations on non-tariff barriers could also have a significant negative impact on measures taken to conserve fish stocks. A number of countries, including Norway, have already objected to requirements to provide information about the provenance of fish, for example. Similarly, the Philippines have challenged trade restrictions required by CITES, in relation to freshwater fish, saltwater fish and fish for aquaria. Additionally, Argentina has notified regulations establishing maximum contents of heavy metals in certain fish products. Forests and Bio- diversity The forest sector in developing countries protected by high tariffs, there could be considerable environmental and social costs due to downsizing of the industrial capacity and closing some industries entirely . According to the FAO, more than 350 million people living in or next to dense forests rely on them for subsistence or income . Sixty million indigenous people are almost wholly dependent on forests. A further 13 million people are employed in the formal forestry sector. Again, however, Japan opposes the forestry sectoral and the EU is not supporting it. It could therefore be removed from the negotiations in the near future. Yet again, the agreed intensification of negotiations on NTBs means that challenges already notified by countries, relating to wood and wood products, could proceed. These are likely to be based on notifications already listed by Australia, Egypt, Japan, Malaysia, New Zealand, the Philippines and the US, covering testing, certification, standards and regulations, and labeling. In contrast to their position on tariff liberalization in this sector, Japan and the EU have also challenged export restrictions

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that countries apply to their forest product exports, which may be in place to protect biodiversity or promote domestic economic development in the exporting countries. Bio-Diversity and TRIPS In addition, at Hong Kong, rich countries' governments rejected attempts by India, Bolivia, Colombia, Ecuador, Peru and other developing countries to begin to recognise the rights of local communities and indigenous peoples over their own traditional knowledge and genetic resources. The TRIPS agreement obliges the 149 WTO member countries to protect intellectual property rights (IPRs) relating to plant varieties and microbiological processes, using patents and similar IPR systems. The agreement undermines the rights of farmers, indigenous peoples and communities by allowing large biotechnology companies to buy and patent the seeds, crops, medicines and traditional knowledge of indigenous peoples and local communities. TRIPS further biopiracy, the privatization and unauthorized use of biological resources by entities such as corporations. Women are particularly affected, as they are often responsible for collecting food and medicinal resources for their families and play a major role in traditional seed-saving systems. Agriculture The crux of the Hong Kong deal is agriculture, with a date for eliminating export subsidies having been set at 2013 and developing countries gaining an exception for special products (which they may self-designate ) and safeguard measures in case of import surges. But the date for the elimination of export subsidies is far in the future. Furthermore, the text of the Declaration does nothing to advance the setting of limits on the bulk of subsidies, domestic support subsidies that will allow the continued the dumping of EU and US products on developing countries. In addition, developing countries could be forced to open their agricultural markets as a result of the tariff cuts they will be required to make. Intensive agricultural practices and liberalized international trade are leading to social disruption, environmental damage and even hunger, particularly in developing countries. Small-scale farmers are particularly vulnerable to market-opening pressures and are often forced from their land when it is converted to plantations or planted with crops for export. Services After huge controversy about whether services liberalization should become mandatory or not, developing countries have finally accepted a deal which could still eventually force them into liberalizing a range of environmentally-sensitive sectors. Strong text regarding plurilateral negotiations remains in place, including language that requires that countries shall consider requests.
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The local environmental impacts of oil exploration and extraction and pipeline construction and transport include deforestation, toxic contamination, and frequent
WTO and DEVELOPING COUNTRIES

impacts on gender and human rights and the rights of indigenous communities. At a broader level these operations make major contributions to climate change, the expansion of energy service operations will worsen these impacts, and GATS rules could make it increasingly difficult to adopt and enforce environmental and natural resource protection measures. Environmental services , as currently defined in GATS, is essentially a misnomer used to describe sizeable industries involved in waste disposal and treatment. The current classification includes sewage services, refuse disposal services, sanitation and other services, and other environmental services. The core services in this sector are thus so-called end of pipe disposal services, not environmental services directed towards prevention or remediation of environmental damage. Water distribution and wastewater treatment fall under the environmental services classification. Access to water is a fundamental human right. However, some WTO members insist on turning water into a commodity and an industrial 'service' sector, granting transnational corporations the right to manage water exploitation and distribution. Water liberalization has been bad news in recent years for many people and communities, from Cochabamba, Bolivia, where water privatization brought an immediate 68% price rise, to Manila, Philippines, where prices increased 500% over a six-year period. The deadlines agreed at Hong Kong are (1) revised requests by 28 February 2006; (2) first offers by 31 July; (3) revised offers by 31 October. This could mean that countries will rush into making commitments before having a full picture of their environmental, social, gender and employment implications. Environmental Negotiations The text of the Declaration moves forward problematic negotiations concerning the relationship of the WTO to multilateral environmental agreements (MEAs). Many environmental groups have opposed these negotiations. The current WTO negotiations have not only failed to provide any further institutional and legal clarification, but also threaten to set rules and criteria for the use of trade measures in both current and future MEAs. This could hamper the ability of governments to implement MEAs and regulate trade in favor of the environment. It is highly unlikely that the negotiations in the WTO s Committee on Trade and Environment will lead to a safety net for MEAs. Furthermore, environmental technology (e.g. solar panels and wind turbines) is mostly produced in industrialized countries. A tariff reduction could thus reduce developing countries chances of developing their own environmental industries. Development Assistance Governments meeting in Hong Kong, supposedly to offer the poorest countries a development deal have repackaged old aid, disguising it as new money for developing countries. Furthermore, promises of loans for infrastructure projects will
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increase debt burdens and open developing countries to further corporate exploitation. It is ironic that some of the poorest countries in the world are still being put under extreme pressure to open up their markets in the name of development, even when they have protested that this could lead to deindustrialization and increased poverty and unemployment. On duty-free quota-free market access (that is completely free market access for the poorest countries), the US will be allowed to continue to protect 420 product tariff lines. The Main Points from the Doha WTO Declaration Ministers from the 142-member World Trade Organization wrapped up a six-day conference in Doha on Wednesday, approving a declaration outlining an agenda for a new round of multilateral trade talks. Here is a summary of some of the meeting's principal conclusions: AGRICULTURE- Ministers adopted a text calling for negotiations with a view to "phasing out" agricultural export subsidies, as demanded by the United States and an alliance of exporters known as the Cairns Group. But the European Union, which strongly resisted pressure to make any commitment to end subsidies, managed to win the insertion of language making it clear that participants would take part in such negotiations "without prejudging the outcome". The EU had long argued that a firm engagement to eliminate export subsidies would interfere with its own timetable for farm sector reform. PUBLIC HEALTH- The conference, in a concession to developing countries, determined that a WTO agreement on intellectual property rights "does not and shoud not prevent (WTO) members from taking steps to protect public health". Developing countries had demanded authorization from the WTO to override patents held by big pharmaceutical companies in order to make cheaper, generic drugs available to their people in times of medical crises. But the text likewise reiterates a commitment to the WTO accord known as TRIPS (trade related aspects of intellectual property rights). The United States and Switzerland had warned that any weakening in TRIPS would discourage companies from investing in critical research. ENVIRONMENT- The text goes some way to meeting EU calls for negotiations to determine the relationship between trade and environmental protection. The EU wants to ensure that governments neither exploit the environment to gain market share nor use environmental protection laws to block imports. Developing countries resisted any such linkage, fearing that industrialized nations will in fact use environmental clauses in trade pacts to protect their markets. The text stipulates that negotiations on trade and the environment will be held but adds that their outcome should not be prejudged.

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LABOR RIGHTS- The conference concluded that the International Labor Organization is the appropriate venue to discuss the place of core labor standards in trade accords. While the EU had sought stronger language, making it clear the WTO also has a role to play in enforcing core labor standards, developing countries objected + suspecting that the West would use such standards for protectionist purposes. INVESTMENT- Negotiations on liberalizing investment policies were put off until after the next WTO ministerial meeting in 2003. This again is a minor concession to developing countries who object to opening their economies to foreign investment until their industries and institutions are able to compete with overseas rivals. ANTI-DUMPING- Japan and South Korea were the big winners in this debate, as WTO ministers agreed that the imposition of anti-dumping duties on imports deemed to have entered a country at unfairly low prices was a proper subject for debate. Japan and South Korea say the United States misuses the anti-dumping weapon in order to protect inefficient domestic industries such as steel. US officials say antidumping measures are necessary to preserve public support for free trade. By all accounts the United States would have preferred to keep anti-dumping off the table in Doha.

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3. WTO And Bangladesh 3.1. The impact of WTO on Developing Countries Developing countries have never had a decisive role in the General Agreement on Tariffs and Trade (GATT)/World Trade Organisation (WTO) system; but their weakness may be much more damaging now than ever before, because of three newly emerging features. First, the WTO is increasingly spreading its coverage to new areas. Second, the impact of the agreements of the WTO (as compared to the GATT) and their operation is much wider and deeper for the economies of countries, particularly the developing countries. Third and perhaps the most important, the economies of the developing countries are much more vulnerable at present than before because of their own weakness and also exposure to the uncertain external environment. Amidst all these challenges in the WTO, the developing countries are in a very weak position. This weakness is manifested in various ways, some of which can be wellidentified. For example: (i) the developing countries have been getting less than equal treatment in several areas, (ii) they have been making significant concessions to major developed countries without getting much in return from them, (iii) several important provisions of special and differential treatment of developing countries have not been properly implemented, (iv) the subjects and areas of interest to the developing countries have been consistently ignored and not attended to, (v) in the working of the dispute settlement process, important interpretations are evolving which have the potentiality of constraining their production and export prospects, (vi) big loopholes and traps have been left in some agreements which could have possible adverse impacts on the developing countries, etc.. All this needs to be elaborated and clarified by way of illustrations. Strategies of Developing Countries in the WTO The strategies of the developing countries and the method of their participation in the WTO are generally of two types. Either they are indifferent and totally silent, or there is rigid opposition up to a certain extent, followed by abrupt and total capitulation. A Glimpse of the Tasks Ahead The work to be undertaken in the next few years may be divided into four categories, viz., (i) implementation of the WTO agreements, (ii) review of some provisions of the agreements, (iii) continuing negotiations in some areas and (iv) the work in some new areas.
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First and foremost, the developing countries have to have the political determination not to be pushed around in the WTO forum. They should also have a resolute will to utilise the forum to serve their interests and minimise the adverse effects on them. In this process they have to move with a degree of confidence, identify their negotiating strengths and use them effectively. Efforts have to be mounted at national level, group level and multilateral level. The biggest strength of a negotiator in a multilateral negotiation lies in having the full support of his or her country behind the stand being taken. This can happen only when the stand of the country is decided after thorough deliberation. Developing countries need to improve and strengthen their decision-making machinery and institutions. There is also the need for a change in their strategy in the negotiations and for comprehensive preparations for their role in the WTO. At the same time, they also have to work for a total change in the WTO negotiating process. Strengthening National Decision-Making Institutions Developing countries have to identify their specific interests and objectives in respect of the subjects of the WTO. This can be done through the process of a broad-based and in-depth examination of the issues and implications. It requires some institutional changes in the decision-making process. The subjects are so complex and their implications so widespread that any particular ministry in a government would not be fully equipped to handle them on its own. Almost every issue being taken up in the WTO involves differing interests of various wings of the government. It also involves a clash of interests among various industry groups and economic operators. The overall interest and stand of the country can be worked out only after balancing and harmonising all these differing and clashing interests.

3.2. Change in Strategy and Approach Then there should be a change in the developing countries strategy and approach. The current feeling of helplessness that the developing countries cannot have their say in the WTO should be replaced by a new mood that they can achieve their objectives if a number of them are united and well-prepared. The developing countries are in very large number in the WTO and even if one does not expect all of them to come together on all the issues, one can at least expect a large number of them to have a common perception and common stand on a number of subjects. Preparation Process But all this needs the support of detailed analytical examination of the issues involved and identification of interests. The developing countries should undertake such examination, but their capacity is limited. They should build up and strengthen their capacity. They could sponsor this work in some of the universities and institutions in
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their countries. They should also build up a network of institutions in developing countries for this purpose. But considering their limited resources and capacity, it is doubtful if they will be able to undertake studies and analyses on their own on a sustained basis. They need assistance. Regional and Group Efforts The effectiveness of the developing countries will be enhanced if there is better coordination among them. The exercise of coordination should start right from the stage of identification of interests and formulation of positions and stands. Under the overall umbrella of the Informal Group of Developing Countries in the WTO, there may be some smaller groups, based on specific issues and interests, with full transparency and interaction with the other members of the Informal Group. There may also be burden-sharing in preparations in specific areas and exchange of information, which will avoid duplication of efforts and ensure better utilization of their scarce resources.

Change in the WTO Negotiating Process The developing countries have to endeavor to bring in changes in the negotiating process in the WTO so that there is greater transparency and wider participation of developing countries in the negotiations. Discussions in small groups for the purpose of explaining proposals and persuading other countries are a natural process; but for negotiation of the texts of the proposals and agreements, there must be much wider direct participation. There may be difficulties in negotiating the texts in very large groups, but a balance has to be worked out between the need for efficiency and full direct participation of the countries in the negotiating process. Developing countries may deliberate on this issue and make specific proposals for an improved method of negotiations in the WTO.

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4. Conclusion Critics contend that smaller countries in the WTO wield little influence, and despite the WTO aim of helping the developing countries, the politicians representing the most influential nations in the WTO (and within those countries or between them, influential private business interests) focus on the commercial interests of profitmaking companies rather than the interests of all.[citation needed] Martin Khor argues that the WTO does not manage the global economy impartially, but in its operation has a systematic bias toward rich countries and multinational corporations, harming smaller countries which have less negotiation power. Some examples of this bias are: Rich countries are able to maintain high import duties and quotas in certain products, blocking imports from developing countries (e.g. clothing); The increase in non-tariff barriers such as anti-dumping measures allowed against developing countries; The maintenance of high protection of agriculture in developed countries while developing ones are pressed to open their markets; Many developing countries do not have the capacity to follow the negotiations and participate actively in the Uruguay Round; and The TRIPs agreement which limits developing countries from utilizing some technology that originates from abroad in their local systems (including medicines and agricultural products). Khor argues that developing countries have not benefited from the WTO Agreements of the Uruguay Round, and, therefore, the credibility of the WTO trade system could be eroded. According to Khor, "one of the major categories of 'problems of implementation of the Uruguay Round' is the way the Northern countries have not lived up to the spirit of their commitments in implementing (or not implementing) their obligations agreed to in the various Agreements." Khor also believes that the Doha Round negotiations "have veered from their proclaimed direction oriented to a development-friendly outcome, towards a 'market access' direction in which developing countries are pressurised to open up their agricultural, industrial and services sectors. Jagdish Bhagwati asserts however that there is greater tariff protection on manufacturers in the poor countries, which are also overtaking the rich nations in the number of anti-dumping filings.

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Bibliography Naresh K. Malhotra, Marketing Research: An applied orientation (2004). Raymond V. Lesikar & Marie E. Flatley, (2006), Basic Business Communication. 10 edition.McGraw-Hill Irwin. William G. Zikmund, (2007)Business Research Methodology (7th edition).

Electronic Sources http://en.wikipedia.org/wiki/World_Trade_Organization#Developing_countries http://jobfunctions.bnet.com/abstract.aspx?docid=76538 http://www.twnside.org.sg/title/td8.htm http://www.fpif.org/reports/wto_and_developing_countries http://subsite.icu.ac.jp/ssri/Publications/SummaryFolder/J54Summaries/016TJSchoen baum_Eng.pdf http://www.wto.org/english/thewto_e/thewto_e.htm http://www.forbes.com/2010/05/18/wto-gatt-trade-business-oxford-analytica.html http://www.cato.org/pubs/journal/cj19n3/cj19n3-8.pdf

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