COURSE TITLE: International Political Economy

Assignment on WTO , IMF, TRIPS & TRIMS

Submission Date:10/02/22

Submitted by

MD GOLAM SAKLAIN SAKIB

Roll: 1189

Department of International Relations

Jahangirnagar University

Submitted to

MIRAZ RAHMAN KHAN

Assistant Professor

Department of International Relations

Jahangirnagar University
 World Trade Organization (WTO)

The World Trade Organization (WTO) is the only global transnational association dealing with
the rules of trade between nations. At its heart are the WTO agreements, negotiated and inked by
the bulk of the world’s trading nations and ratified in their congresses. The thing is to help
directors of goods and services, exporters, and importers conduct their business. Created in 1995,
the World Trade Organization (WTO) is an transnational institution that oversees the global
trade rules among nations. It supplanted the 1947 General Agreement on Tariffs and Trade
(GATT) created in the wake of World War II. The WTO is basically an indispensable
disagreement or agreement reality that upholds the transnational rules of trade among nations.
The association provides a platform that allows member governments to negotiate and resolve
trade issues with other members. The WTO’s main focus is to give open lines of communication
concerning trade among its members.

Functions :

Among the colorful functions of the WTO, these are regarded by judges as the most important

• It oversees the perpetration, administration and operation of the covered agreements (with
the exception is that it doesn't apply any agreements when China came into the WTO in Dec
2001)

• It provides a forum for accommodations and for settling controversies.

Also, it's WTO's duty to review and propagate the public trade programs and to insure the
consonance and translucency of trade programs through surveillance in global profitable policy-
timber. Another precedence of the WTO is the backing of developing, least- developed and low-
income countries in transition to acclimate to WTO rules and disciplines through specialized
cooperation and training.

Advantages and Disadvantages of the World Trade Organization (WTO) :

The history of transnational trade has been a battle between protectionism and free trade, and the
WTO has fueled globalization, with both positive and adverse goods. The association’s sweats
have increased global trade expansion, but a side effect has been a negative impact on original
communities and mortal rights.
Proponents of the WTO, particularly transnational pots (MNCs), believe that the association is
salutary to business, seeing the stimulation of free trade and a decline in trade controversies as
salutary to the global frugality. Disbelievers believe that the WTO undermines the principles of
organic republic and widens the transnational wealth gap. They point to the decline in domestic
diligence and adding foreign influence as negative impacts on the world frugality.

As part of his broader attempts to talkU.S. transnational trade deals, when he was in office, also-
President Donald Trump hovered to withdraw from the WTO, calling it a “ disaster.” AU.S.
pullout from the WTO could have disintegrated trillions of bones in global trade. Still, he did n’t
withdraw theU.S. from the WTO during his time in office.

Assessment :

The pace of transnational profitable integration via the GATT and WTO rounds of multinational
trade accommodations has been slower and lower comprehensive than some members would
prefer. Beginning in the late 1990s, the WTO was the target of fierce review. Opponents of
profitable globalization ( see antiglobalization), and in particular those opposed to the growing
power of transnational pots, argued that the WTO infringes upon public sovereignty and
promotes the interests of large pots at the expenditure of lower original enterprises floundering to
manage with import competition. Environmental and labour groups ( especially those from fat
countries) have claimed that trade liberalization leads to environmental damage and harms the
interests of low-professed unionized workers. Demurrers by these and other groups at WTO
clerical meetings — similar as the 1999 demonstrations in Seattle, Washington,U.S., which
involved roughly people — came larger and further frequent, in part because the development of
the Internet and social media made large-scale organizing and collaborative action easier. In
response to similar review, sympathizers of the WTO claimed that regulating trade isn't an
effective way to cover the terrain and labour rights. Meanwhile, some WTO members, especially
developing countries, defied attempts to borrow rules that would allow for warrants against
countries that failed to meet strict environmental and labour norms, arguing that they would
amount to veiled protectionism.

Despite these examens, still, WTO admission remained seductive for nonmembers, as
substantiated by the increase in the number of members after 1995. Utmost significantly, China
entered the WTO in 2001 after times of accession accommodations. The conditions for Chinese
class were in some ways more restrictive than those for developing countries, reflecting the
enterprises of some WTO members that the admission of such a large and still kindly planned
frugality might have an overall negative effect on free trade.
 International Monetary Fund (IMF)

The IMF is an independent transnational association. It's a cooperative of 190 member countries,
whose ideal is to promote world profitable stability and growth.1 the member countries are the
shareholders of the collaborative, furnishing the capital of the IMF through share subscriptions.
In return, the IMF provides its members with macroeconomic policy advice, backing in times of
balance of payments need, and specialized backing and training to ameliorate public profitable
operation. The IMF is one of several independent associations designated by the United Nations
(UN) as “ Specialized Agencies,” with which the UN has established working connections.2 The
IMF is a endless bystander at the UN. The Papers of Agreement that created the IMF and govern
its operations were espoused at the United Nations Monetary and Financial Conference in
Bretton Woods, New Hampshire, on July 22, 1944, and entered into force on December 27,
1945.

The accreditation of the IMF as follows:

• To promote transnational financial cooperation through a endless institution which provides

the ministry for discussion and collaboration oninternational financial problems;

• To grease the expansion and balanced growth of transnational trade, and to contribute thereby
to the creation and conservation of high situations of employment and real income and to the
development of the productive coffers of all members as primary objects of profitable policy;

• To promote exchange stability, to maintain orderly exchange arrangements among members,

and to avoid competitive exchange deprecation;

• To help in the establishment of a multinational system of payments in respect of current deals

between members and in the elimination of foreign exchange restrictions which hinder the
growth of world trade;

• To give confidence to members by making the general coffers of the IMF temporarily available
to them under acceptable safeguards, therefore furnishing them with occasion to correct
maladjustments in their balance of payments without resorting to measures destructive of public
or transnational substance; and
• To dock the duration and lessen the degree of disequilibrium in the transnational balances of
payments of members. This accreditation gives the IMF its unique character as an transnational
financial institution, with broad oversight liabilities for the orderly functioning and development
of the transnational financial and fiscal system.

Background

Background Origins Prior to World War II, there was no negotiated transnational governance
governing transnational financial and trade relations. It was the participated view among the
confederated powers that numerous characteristics of the transnational fiscal system during the
period between the first and alternate world wars, including competitive devaluations, unstable
exchange rates, and protectionist trade programs, worsened the 1930s depression and accelerated
the onset of the war. To address these enterprises, representatives of the 44 confederated nations
gathered in Bretton Woods, NH, in July 1944 for the United Nations Monetary and Financial
Conference. Their thing was ambitious and largely successful — to produce a collaborative and
institutional frame for the global frugality that would grease transnational trade and balanced
global profitable stability and growth.

Benefits

Member countries of the IMF have access to information on the profitable programs of all
member countries, the occasion to impact other members' profitable programs, specialized
backing in banking, financial affairs, and exchange matters, fiscal support in times of payment
difficulties, and increased openings for trade and investment.

Lending

The IMF makes loans to countries that are passing profitable torture to help or alleviate fiscal
heads. Members contribute the finances for this lending to a pool grounded on a share system. In
2019, loan coffers in the quantum of SDR11.4 billion (SDR0.4 billion above target) were
secured to support the IMF’s concessional lending conditioning into the comingdecade.IMF
finances are frequently tentative on donors making reforms to increase their growth eventuality
and fiscal stability. Structural adaptation programs, as these tentative loans are known, have
attracted review for aggravating poverty and reproducing the colonialist structures.
Review and debate

The impact of IMF loans has been extensively batted. Opponents of the IMF argue that the loans
enable member countries to pursue reckless domestic profitable programs knowing that, if
demanded, the IMF will bail them out. This safety net, critics charge, detainments demanded
reforms and creates long- term reliance. Opponents also argue that the IMF rescues transnational
bankers who have made bad loans, thereby encouraging them to authorize ever unsafe
transnational investments.

IMF conditionalities have also been extensively batted. Critics contend that IMF policy
conventions give invariant remedies that aren't adequately acclimatized to each country’s unique
circumstances. These standard, austere loan conditions reduce profitable growth and consolidate
and protract fiscal heads, creating severe rigors for the poorest people in borrowing countries and
strengthening original opposition to the IMF.
Trade-Related Aspects of Intellectual Property Rights (TRIPS)

The international organisation Agreement on Trade-Related Aspects of material possession

Rights (TRIPS) is that the most comprehensive three-cornered agreement on material possession
(IP). It plays a central role in facilitating trade data and creative thinking, in breakdown trade
disputes over IP, and in reassuring international organisation members the latitude to realize their
domestic policy objectives. It frames the IP system in terms of innovation, technology transfer
and public welfare. The Agreement may be a legal recognition of the importance of links
between IP and trade and therefore the would like for a balanced IP system.

Overview:

The visits Agreement, that came into impact on one Jan 1995, is up to now the foremost
comprehensive three-cornered agreement on material possession. The areas of material
possession that it covers are: copyright and connected rights (i.e. the rights of performers,
producers of sound recordings and broadcasting organizations); emblems together with service
marks; geographical indications together with appellations of origin; industrial designs; patents
together with the protection of recent forms of plants; the layout-designs of integrated circuits;
and unrevealed data together with trade secrets and check knowledge.

Features of visits Agreement :

The main 3 options of the visits Agreement ar as follows-

Standards: The visits Agreement sets out the minimum standards of protection to be provided
by every Member.

Enforcement: The second main set of provisions deals with domestic procedures and remedies
for the social control of material possession rights. The Agreement lays down bound general
principles applicable to all or any IPR social control procedures.

Dispute settlement: The Agreement makes disputes between international organisation

Members concerning the respect of the visits obligations subject to the WTO’s dispute settlement
procedures.

In addition the Agreement provides sure as shooting basic principles, like national and most-
favoured-nation treatment (non-discrimination), and a few general rules to make sure that
procedural difficulties in getting or maintaining IPRs don't nullify the substantive advantages
that ought to result the Agreement.
The visits Agreement may be a minimum standards agreement, that permits Members to supply
additional intensive protection of material possession if they thus would like. Members ar left
absolve to confirm the suitable methodology of implementing the provisions of the Agreement
inside their own system and observe. the overall goals of the visits Agreement ar come into being
in its Preamble, and embrace reducing distortions and impediments to international trade,
promoting effective and adequate protection of IPRs, and guaranteeing that measures and
procedures to enforce IPRs don't themselves become barriers to legitimate trade.

TRIPS transparency:

Transparency mechanisms facilitate the visits Council to observe the operation of the visits
Agreement and promote the understanding of members� material possession policies and legal
systems. These mechanisms embrace international organisation members' notifications,
responses to checklists of queries, reviews of implementing legislation, reports on technical help
and technology transfer, and phone points.The Guide to Transparency beneath visits gives more
details concerning these mechanisms and the way members will provide and access the
materials.Access notifications, responses to checklists, and reports submitted by members and
observers through the e-TRIPS entree.Members and observers might submit notifications, listing
responses, and reports on-line via the e-TRIPS Submission System (restricted access).

Cooperation with alternative intergovernmental organizations:

The law and policy of material possession ar more and more tangled with a good vary of world
problems, occupation for cooperation and dialogue inside the international community. The
visits Agreement incorporates by reference substantive provisions of bound pre-existing three-
cornered conventions on material possession.The Preamble to the visits Agreement requires “a
reciprocally supportive relationship between the international organisation and therefore the
World material possession Organization still as alternative relevant international organizations”.

The international organisation Secretariat thus cooperates with several intergovernmental and
regional organizations on matters of common interest. This cooperation includes collaborating as
associate degree observer in alternative organizations’ conferences, collaborating on technical
help, and consulting on alternative topics upon request.
Agreement on Trade Related Investment Measures(TRIMS)

The Agreement on Trade-Related Investment Measures (TRIMS) acknowledges that sure

investment measures will prohibit and warp trade. It states that World Trade Organization
members might not apply any live that discriminates against foreign product or that results in
quantitative restrictions, each of that violate basic World Trade Organization principles. a listing
of prohibited TRIMS, like native content needs, is an element of the Agreement. The TRIMS
Committee monitors the operation and implementation of the Agreement and permits members
the chance to consult on any relevant matters. The agreement on trade-related investment
measures (TRIMS) area unit rules that apply to the domestic laws a rustic applies to foreign
investors, typically as a part of AN industrial policy. The agreement was prearranged by all
members of the planet trade organization the agreement was all over in 1994 and came into force
in 1995. The World Trade Organization wasn't established at that point, it absolutely was its
forerunner, the General Agreement on Tariffs and Trade ( General Agreement on Trade and
Tariffs. The World Trade Organization passed in 1994-95)

Policies like native content needs and trade equalization rules that have historically been wont to
each promote the interests of domestic industries and combat restrictive business practices area
unit currently illegal. Trade-Related investment measures is that the name of the World Trade
Organization trade pact. TRIMS area unit rules that prohibit preference of domestic companies
and thereby alter international companies to control a lot of simply among foreign markets.

TRIMs might embrace needs to:

I. win an explicit level of native content;

II. manufacture locally;

III. Export a given level/percentage of goods;

IV. Balance the amount/percentage of imports with the amount/percentage of exports;

V. Transfer of technology or proprietary business info to native persons;

These needs is also necessary conditions for investment, or will be connected to business
enterprise or alternative incentives. The TRIMs Agreement doesn't cowl services. All World
Trade Organization member countries (offsite link) area unit parties to the present Agreement.
This Agreement went into result on Jan one, 1995. it's no expiration date.

The Agreement needs all World Trade Organization Members to apprise the TRIMs that area
unit inconsistent with the provisions of the Agreement, and to eliminate them when the end of
the transition amount provided within the Agreement. Transition periods of 2 years within the
case of developed countries, 5 years within the case of developing countries and 7 years within
the case of LDCs.

Features of TRIMs:

1.Abolition of restriction obligatory on foreign capital.

2.Offering equal rights to the foreign capitalist on par with the domestic capitalist.

3.No restrictions on any space of investment.

4.No limitation or ceiling on the quantum of foreign investment.

5.Granting of permission of while not restrictions to import staple and alternative elements

6. No force on the foreign investors to use the overall product and or material

7. Export of the a part of the ultimate product won't be necessary

8. Restriction on repartiation of dividend interest and royalty are removed.

Examples of TRIMs expressly Prohibited by the TRIMs Agreement:

Local content demand:Measures requiring the acquisition or use by AN enterprise of domestic

product, whether or not per terms of explicit product, in terms of volume or price of product, or
in terms of a proportion of volume or price of its native production. (Violation of General
Agreement on Tariffs and Trade Article III:4)

Trade equalization requirements: Measures requiring that AN enterprise's purchases or use of

foreign product be restricted to AN quantity associated with the quantity or price of native
product that it exports. (Violation of General Agreement on Tariffs and Trade Article III:4)

Measures limiting the importation by AN enterprise of product utilized in or associated with its
native production, usually or to AN quantity associated with the quantity or price of native
production that it exports. (Violation of General Agreement on Tariffs and Trade Article XI:1)

Foreign exchange restrictions: Measures limiting the importation by AN enterprise of product

(parts ANd alternative goods) utilized in or associated with its native Production by limiting its
access to interchange to an quantity associated with the interchange inflows thanks to the
enterprise. (Violation of General Agreement on Tariffs and Trade Article XI:1)

Export restrictions (Domestic sales requirements): Measures limiting the exportation or sale
for export by AN enterprise of product, whether or not per terms of explicit product, in terms of
volume or price of product, or in terms of a proportion of volume or price of its native
production. (Violation of General Agreement on Tariffs and Trade Article XI:1)

Conclusion:

The TRIMs Agreement has been found by the developing countries to be standing within the
approach of sustained industry of developing countries, while not exposing them to balance of
payment shocks, by reducing considerably the policy area offered to those countries. Developed
countries, on the opposite hand, are declaring an additional enlargement within the list of
prohibited TRIM. however Bharat ought to watch out whereas giving its node to the enlargement
of TRIMS as a result of it's going to build Indian manufacture a lot of vulnerable against a
budget product of developed countries.