he positive impact of WTO on developing countries can be viewed from the following

aspects:
1.
Growth in Merchandise Exports: The exports of developing countries like India,
China, Brazil, etc., have increased since the setting up of WTO. The increase in exports
of developing countries is due to reduction in trade barriers tariff and non-tariff. For
instance, Indias merchandise exports have increased by 5.8 times since 1995 as
shown in the table:
Indias Merchandise Exports
Year
US $ Billion
1995
32
2008-09
185

2.
Growth in Services Exports: The WTO has also introduced an agreement on
services called GATS. Under this agreement, the member nations have to liberalise the
services sector. Certain developing countries like India would benefit from such an
agreement. For instance, Indias services exports have increased from about 5 billion
US $ in 1995 to 102 billion US $ in 2008- 09. The software services accounted for about
45% of the services exports of India.
3.
Foreign Direct Investment: As per the TRIMs agreement, restrictions on foreign
investment have been withdrawn by member nations of WTO including developing
countries. Therefore, the developing countries like Brazil, India, China, etc., have been
benefited by way of foreign direct investment as well as by Euro equities and portfolio
investment. In 2008-09, foreign direct investment (net) in India was 35 US $ billion.
4.
Textiles and Clothing: It is estimated that the textiles sector would be one of the
major beneficiaries of the impact of Uruguay Round. At the Uruguay Round, it was
agreed upon by member countries to phase out MFA by 2005. Under MFA, the
developed countries like France, USA, UK, Canada, etc. used to import quotas on
textile exporting countries. The MFA has been withdrawn w.e.f. 1.1.2005, and therefore,
it would benefit the developing countries including India by way of increase in export of
textiles and clothing.
5.
Benefits of TRIPs Agreement: The TRIPs agreement has benefited the
developing countries like Brazil, India, China, and others. The firms in developing
countries have also developed new products and got them patented. Developing
countries have also benefited by way of GIS status. For instance, India has obtained
GIS for products like Darjeeling Tea, Goa Feni, and so on.

Therefore, it can be concluded that the WTO has created both a positive and negative
impact on developing countries. It is expected that the developing countries like Brazil,
India, China, South Korea, would greatly benefit from WTO agreements in the coming
years, provided they make efforts to improve efficiency and international
competitiveness.
WTO & its implications on International Marketing by MT UVA BMS
Share this article and help us help you: