DISSERTATION

JAMSHEDPUR WOMEN’S UNIVERSITY

JAMSHEDPUR

TITTLE- IMPACT OF WTO IN EMERGING

ECONOMY
SUBMITTED BY:

NAME- Asmita Paul

CLASS- M.com (hons.)

SEMESTER- IV

COLLEGE ROLL NO- 01

SUBJECT- FINANCE

EXAM ROLL NO- 213206214719

SESSION- 2021-2023

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 AUTHENTICATION CERTIFICATE

This is to certify that the dissertation titled “IMPACT OF WTO IN

EMERGING ECONOMY” has been submitted by ASMITA PAUL
under the guidance of DR. DEEPA SHARAN / DR. GLORIA PURTI.

-----------------------------
Signature of student
Date-

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 CERTIFICATE

This is to certify that Ms. ASMITA PAUL of MCOM semester IV of Jamshedpur

Women’s University, Jamshedpur has completed her dissertation under the
supervision of her guide. She has taken proper care and shown utmost sincerity in
completion of the project.

I certify that the dissertation is completed as per the given guidelines.

Dr. Deepa Sharan ----------------------------

Signature head & dean signature of guide
Department of commerce & department of commerce
Business management business management

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 ACKNOWLEDGEMENT

I would like to express my special gratitude to my teachers for their continuous

guidance and support in completion of my dissertation. I would also like to show
my gratitude to Deepa mam and Gloria mam for showing genuine interest with all
the faculty and help required for this dissertation.

Name of student ____________

Class ____________

Exam roll no. _____________

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 CONTENT
SERIAL INDEX PAGE
NUMBER NUMBER
I INTRODUCTION 06-07
II OBJECTIVE 08
III RESEARCH METHODLOGY 09
IV SIGNIFICANCE 11
V HYPOTHESIS 12
VI LITERATURE REVEW 13-14
VII LIMITATION 15
CHAPTER 1

 Overview of WTO
History of WTO
VIII  Evolution of WTO 16-24
 Function of WTO
 Principles & Objectives of WTO
 WTO agreements

CHAPTER 2

 Impact of WTO in emerging economies

 Benefits & challenges of WTO for emerging
economies 25-40
 Impact of WTO accession in emerging
economies
IX  Role of WTO in promoting eco. Growth
 Future of WTO & its impact
 Evolution of RTA

CHAPTER 3

X  WTO and INDIA 41-45

 Impact of WTO on Indian economy

XI ANALYSIS AND INTERPRETATION 46-50

FINDINGS 51-52
XII SUGGESTION 53
XIII CONCLUSION 55
REFERENCES 56

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 INTRODUCTION
ABOUT WTO:
The World Trade Organization (WTO) is an intergovernmental
organization that regulates and facilitates the international trade.
The World Trade Organization was established in 1995 as an international
organization that aims to promote free and fair trade between countries. Its
primary role is to facilitate trade negotiations, resolve trade disputes, and monitor
members' trade policies. The organization has a membership of 164 countries,
including many emerging economies. The impact of the WTO on emerging
economies has been a subject of much debate, with proponents arguing that it has
helped to open new markets and increase economic growth, while critics have
pointed to negative impacts such as job losses and increased inequality. This
assignment will examine the impact of the WTO on emerging economies,
analysing its effects on trade liberalization, foreign investment, and economic
development. Through an evaluation of available literature, this assignment seeks
to assess the extent to which the WTO has contributed to the development of
emerging economies and its implications for future trade policies.

WTO is the only international organization dealing with the rules of trade between
nations. At its heart are the WTO agreements, negotiated and signed by the bulk
of the world’s trading nations and ratified in their parliaments. The goal is to help
producers of goods and services, exporters, and importers to conduct their
business fairly. Following the Uruguay round agreement, [name of the eighth
round of multilateral trade negotiations held under the auspices of GATT (General
Agreement on Trade and Tariffs)], GATT was converted from a provisional

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agreement in to a formal international organization called WTO (World Trade
Organization) with effect from Jan-1, 1995. WTO is directed by a ministerial
conference that will meet at least once every two years and its regular business is
overseen by a General Council. Its Secretariat is based in Geneva, Switzerland.
The WTO ensures that trade is as fair as possible and as free as practicable by
negotiating rules and obeying them.
The world trade organisation (WTO) is the only international organisation dealing
with the global rules of trade. Its main function is to ensure that trade flows as
smoothly, predictably, and freely as possible.

 The WTO has many roles:

It operates a global system of trade rules, it acts as a forum for negotiating
trade agreements, it settles trade disputes between its members and it
supports the needs of developing countries.
 Work of WTO:
All major decisions are made by the WTO's member governments: either by
ministers (who usually meet at least every two years) or by their
ambassadors or delegates (who meet regularly in Geneva).
 WTO stands for:
Several simple, fundamental principles form the foundation of the
multilateral trading system.
 Overview:
The primary purpose of the WTO is to open trade for the benefit of all.

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 OBJECTIVE OF THE STUDY:
 To analyse and investigate the impact of the WTO and WTO policies on the
economic growth and development of emerging economies.
 To examine and assess the extent to which the WTO has facilitated trade
liberalization in emerging economies and its implications.
 To evaluate the role of the WTO in addressing the unique challenges faced
by emerging economies in international trade, such as intellectual property
rights, agricultural subsidies, and environmental regulations etc.
 To analyse the effectiveness of WTO in addressing the challenges faced by
the developing economies in international trade and to identify the
opportunities for improvement.
 To identify the factors that have influenced the participation of emerging
economies in the WTO and the implications of such participation for their
economic development.

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 RESEARCH METHODOLOGY
Methodology in research is defined as the systematic method to resolve a
research problem through data gathering using various techniques, providing an
interpretation of data gathered and drawing conclusions about the research data.
Essentially, a research methodology is the blueprint of a research or study.
WHAT IS DATA?
Data can be defined as a systematic record of a specific quantity. It is a collection of
facts and figures to be used for a specific purpose such as a survey or analysis. When
the data is arranged in an organized form, it can be called as an information.
Depending upon the source data is classified into two types:
I. Primary data
II. Secondary data

Primary data is the kind of data that is collected directly from the data source
without going through any existing sources. It is mostly collected specially for a
research project and may be shared publicly to be used for another research as
well.

Secondary data is data that has been collected in the past by someone else but
made available for others to use. They are usually once primary data but become
secondary when used by a third party.

Secondary data are usually easily accessible to researchers and individuals

because they are mostly shared publicly. This, however, means that the data are
usually general and not tailored specifically to meet the researcher’s needs as
primary data does.

MY METHOD OF DATA COLLECTION

The research methodology for this assignment on the impact of the World Trade
Organization (WTO) on emerging economies involves research based on
secondary data. The study has been conducted using a descriptive research design
that seeks to analyse the effects of the WTO on trade liberalization, foreign
investment, and economic development in emerging economies.

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Basically, my method of data collection for this assignment ‘IMPACT OF WTO
IN EMERGING ECONOMIES’ is totally based upon secondary source of data
which includes:

1. WTO official publications: The WTO provides various official

documents such as about WTO, news and events, trade topics, WTO
membership, annual reports, trade policy reviews, documents data
and resources that provided me with valuable information on the
impact of the organization on emerging economies.

2. Government Publications: Governments of emerging economies

often publish reports on their trade policies, economic performance,
and the impact of international trade agreements, including those
with the WTO. These publications can offer valuable data and
analysis.

3. International Organizations: Other international bodies, such as the

International Monetary Fund (IMF), World Bank, and United Nations
Conference on Trade and Development (UNCTAD), often produce
reports on global trade and its effects on emerging economies.

4. Academic Journals: Scholarly articles and studies may focus on the

impact of the WTO on emerging economies. These publications can
provide in-depth analyses, research findings, and statistical data.

5. Industry and Trade Associations: Some trade associations and

industry groups may publish reports on the impact of WTO
regulations on specific sectors within emerging economies.

6. Business Magazines and News Outlets: Business-focused

magazines, newspapers, and news websites often cover trade-related
topics and may provide insights into the effects of WTO on emerging
economies.

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 SIGNIFICANCE OF THE STUDY
The World Trade Organization (WTO) is an international organization that sets
the rules for global trade and works to promote free and fair trade among its
member countries. The impact of the WTO on emerging economies has been
significant in several ways:

1. Understanding Trade Implications: The study provides insights into how

WTO membership affects trade patterns, growth, and economic
development in emerging economies.

2. Policy Guidance: Policymakers can use the findings to make informed

decisions regarding trade policies, agreements, and reforms to maximize
benefits from WTO participation.

3. Economic Growth Analysis: The research contributes to the assessment

of how WTO engagement influences the economic growth trajectory of
emerging economies.

4. Global Perspective: The study contributes to a broader understanding of

the interplay between international trade institutions like the WTO and
emerging economies, shaping global economic interactions.

In general, the impact of the WTO on emerging economies has been significant,
as it has helped me to learn about the economic growth, increase market access,
and improve the investment climate in these countries. However, there have also
been concerns about the impact of WTO rules on developing countries,
particularly in terms of their ability to protect domestic industries and promote
development.

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 HYPOTHESIS
In research, a hypothesis is a statement that predicts the relationship between two
or more variables. It is a tentative explanation for a phenomenon or an observation
that can be tested through research methods.
In research, a null hypothesis (H0) is a statement that suggests that there is no
significant difference or relationship between two or more variables. The null
hypothesis typically represents the status or the prevailing understanding of a
phenomenon, and it serves as a baseline for comparison with the alternative
hypothesis.
An alternate hypothesis (H1) is a statement that suggests that there is a significant
difference or relationship between two or more variables. The alternative
hypothesis represents a departure from the null hypothesis and proposes a new
explanation or understanding of the phenomenon under investigation.

NULL HYPOTHESIS(H0):
There is no significant relationship between WTO membership and economic
growth, trade, and investment in emerging economies.

ALTERNATE HYPOTHESIS(H1):
The impact of WTO on emerging economies is positive and leads to increased
economic growth, trade liberalization, and greater international competitiveness.
This hypothesis will prove that emerging economies that have joined the WTO
have experienced significant benefits in terms of increased foreign investment,
greater access to global markets, and increased trade in goods and services.
Additionally, joining the WTO may also lead to institutional reforms that promote
good governance and a more favourable investment climate, which can further
encourage economic development in emerging economies. Through these
channels, the WTO can play a crucial role in promoting inclusive and sustainable
economic growth in emerging economies.

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 LITERATURE REVIEW

SERIAL
NO. AUTHORS YEAR REVIEW FINDING
1. This review article provides an
in-depth analysis of the impact
of joining the WTO on various
Smith, A., 2019 emerging economies. It
examines the trade effects,
Johnson, B., & Lee, economic growth, and policy
C. implications of WTO
membership for countries in
different regions.
2. This study investigates the
relationship between trade
liberalization, as facilitated by
Chen, L., Gupta, S., 2018 WTO agreements, and
economic growth in emerging
& Rodriguez, J. economies. It assesses how
WTO membership influences
economic indicators and
competitiveness.

3. This research examines the

participation of emerging
economies in WTO dispute
Kim, D., & Wang, 2017 settlement mechanisms. It
analyses the challenges faced
L. by these nations and the
opportunities presented by the
WTO's legal framework.

4. This study explores the impact of

the Trade-Related Aspects of
Intellectual Property Rights
(TRIPS) Agreement, as a part of
the WTO framework, on
Patel, R., & Khan, 2016 technology transfer in emerging
economies &implications for
M. domestic innovation and
industrial development.

5. This research investigates the

impact of agricultural subsidies

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 provided by emerging
economies on global food
Lee, S., & Garcia, 2015 security. It assesses the
M. compliance of these subsidies
with WTO rules and their
implications for international
trade in agricultural products.

6. This study examines the

services trade liberalization
commitments made by
Gupta, R., & emerging economies under the
General Agreement on Trade in
Fernandez, E. 2014 Services (GATS) within the
WTO framework. It evaluates
the progress and challenges in
the implementation of these
commitments.

7. 2013 Intellectual Property Rights and

Technology Transfer in
R.Ahmed & S.Khan Emerging Economies: A
Comprehensive Literature
Review." Journal of Technology
Transfer
8. This study examines about
2018 WTO Dispute settlement
Gupta & Sharma mechanism and emerging
economies: A critical
analysis world trade
review.

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 LIMITATION OF THE STUDY

When conducting research using secondary data for my assignment on the

"Impact of WTO in Emerging Economies," I have encountered several limitations
that can impact the quality and scope of my study. Some common limitations are:

1. Data Availability and Quality: The availability of relevant and

comprehensive secondary data may be limited, especially when focusing on
specific emerging economies. Additionally, the quality of the data we find
can vary, leading to potential inaccuracies or inconsistencies.

2. Scope and Coverage: Secondary data may not cover all aspects of the
impact of WTO in emerging economies. Certain nuances or specific details
may be missing, limiting the depth of our analysis.

3. Outdated Information: Some secondary data may be outdated,

particularly if the information we find comes from older reports or
publications. The impact of WTO on emerging economies may have
evolved over time, and using outdated data may not reflect the current
situation accurately.

4. Data Relevance: The secondary data I have found may not be directly
relevant to the specific research questions or focus of my assignment. we
may need to extract useful insights from broader datasets.

5. Data Bias: Secondary data can be influenced by the biases and perspectives
of the original researchers or institutions that collected the information. It is
essential to be mindful of potential biases when interpreting the data.

6. Data Interpretation Challenges: Analysing and interpreting secondary

data can be complex, as I may need to adjust data to fit my specific research
questions, and different studies might use different methodologies.

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 WORLD TRADE ORGANIZATION

OVERVIEW OF WTO:
The World Trade Organization (WTO) is an intergovernmental organization that
was established in 1995 to regulate international trade and promote economic
growth around the world. It is the only international organization that deals with
the global rules of trade between nations.

The WTO has 164 member countries, and its primary functions are to facilitate the
negotiation of new trade agreements, oversee the implementation of existing
agreements, and provide a forum for member countries to resolve trade disputes.
The organization's main goal is to help create a level playing field for international
trade, so that businesses and consumers can benefit from the free flow of goods
and services across borders.

The WTO's work is guided by a set of fundamental principles, including non-

discrimination, transparency, predictability, and the promotion of fair competition.
It also encourages member countries to promote sustainable development and to
ensure that trade policies are aligned with broader social and environmental goals.

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The WTO is based in Geneva, Switzerland, and has a staff of around 700 people
from over 80 countries. It is funded by contributions from its member countries,
and decisions are made by consensus among its member governments.

HISTORY OF WTO:

The World Trade Organization (WTO) is an intergovernmental organization that

was established on January 1, 1995, as a result of the Uruguay Round of trade
negotiations, which lasted from 1986 to 1994. The WTO is the successor to the
General Agreement on Tariffs and Trade (GATT), which was established in 1947.

GATT was created to promote free trade by reducing tariffs and other trade
barriers between member countries. The organization operated under a series of
multilateral trade agreements negotiated during several rounds of negotiations,
with the last one being the Uruguay Round.

During the Uruguay Round, negotiations focused on several areas, including

agriculture, intellectual property, and services. The agreement that emerged from
these negotiations established the WTO as a new organization with a broader
mandate than GATT. The WTO's mandate includes not only the promotion of free
trade but also the monitoring of member countries' trade policies, the settlement of
disputes between member countries, and technical assistance and training for
developing countries.

The WTO is currently composed of 164 member countries, and its headquarters is
in Geneva, Switzerland. Over the years, the organization has faced criticism from
various quarters, with some accusing it of promoting the interests of developed
countries over developing ones. Despite these criticisms, the WTO remains a
critical institution for promoting global trade and resolving trade disputes between
member countries.

EVOLUTION OF WTO:
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The World Trade Organization (WTO) has evolved over time since its creation in
1995, adapting to changes in the global economy and responding to the challenges
facing the multilateral trading system. Here are some key moments in the
evolution of the WTO:

 The Doha Round: In 2001, the WTO launched the Doha Development
Agenda, a round of negotiations aimed at reducing trade barriers and
improving market access for developing countries. However, the
negotiations stalled and were never completed.

 China’s Accession: In 2001, China joined the WTO, marking a significant

shift in the global trading system. China's accession has had a major impact
on global trade flows and has led to tensions with other trading partners
over issues such as intellectual property rights and industrial policy.

 Dispute Settlement: The WTO's dispute settlement system has been a key
feature of its operations. However, the system has faced challenges in
recent years, with the United States blocking appointments to the Appellate
Body, which is responsible for resolving disputes.

 Environmental and Social issues: The WTO has increasingly been called
upon to address environmental and social issues, such as climate change
and labour standards. The organization has responded by launching
initiatives to promote sustainable development and to improve the working
conditions of workers in the global supply chain.

 The covid-19 pandemic has had a significant impact on global trade, and
the WTO has played a role in responding to the crisis. In particular, the
organization has worked to ensure that trade in essential goods, such as
medical supplies, can continue despite disruptions caused by the pandemic.

Therefore, the WTO has evolved to address the changing needs of the global
economy and to respond to the challenges facing the multilateral trading system.
While the organization has faced criticism and challenges, it continues to play an
important role in promoting free and fair trade between nations.

FUNCTIONS OF WTO:

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The World Trade Organization (WTO) is an intergovernmental organization that
facilitates international trade and ensures that it flows smoothly, predictably, and
freely as possible. The primary function of the WTO is to provide a platform for
member countries to negotiate and implement trade agreements, resolve trade
disputes, and monitor national trade policies.

Here are some of the key functions of the WTO:

 Administering and Implementing trade agreement: The WTO

administers various multilateral trade agreements, such as the General
Agreement on Tariffs and Trade (GATT), which cover a range of trade-
related issues, including tariffs, non-tariff measures, and services trade.

 Providing a forum for trade negotiation: The WTO provides a platform

for member countries to negotiate new trade agreements and revise existing
ones. These negotiations cover a wide range of issues, such as agriculture,
intellectual property, and services trade.

 Monitoring nation trade policy: The WTO reviews the trade policies of
member countries and provides a forum for discussing any concerns or
issues that may arise.

 Providing technical assistance and training: The WTO provides technical

assistance and training to developing countries to help them build the
capacity to participate effectively in the multilateral trading system.

 Resolving trade disputes: The WTO has a dispute settlement mechanism

that allows member countries to resolve disputes over trade issues in a fair
and impartial manner.

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In general, the WTO plays a vital role in promoting global trade and
economic development by ensuring that trade flows smoothly, predictably, and
freely among its members.

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PRINCIPLES AND OBJECTIVES OF
WTO
The WTO is based on a set of principles and objectives designed to promote free
and fair trade among its member nations. Here are some of the key principles and
objectives of the WTO:

PRINCIPLES:
1. Non-discrimination: The WTO's most fundamental principle is non-
discrimination, which means that member countries must treat all other
member countries equally in terms of trade. This principle is embodied in
two key agreements: the Most-Favoured Nation (MFN) principle and the
National Treatment principle.

2. Free-trade: The WTO promotes free trade by removing barriers to trade,

including tariffs, quotas, and other trade restrictions.

3. Predictability and Transparency: The WTO seek to promote

predictability and transparency in international trade by requiring member
countries to notify each other of any changes in their trade policies and by
providing a forum for the resolution of trade disputes.

4. Fair Trade: WTO agreements prevent unfair dumping, subsidies,

government procurement etc.

OBJECTIVES:
1. Promoting economic growth and development: The WTO seeks to
promote economic growth and development by reducing trade barriers and
increasing trade flows between countries.

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 2. Creating jobs: By promoting free and fair trade, the WTO aims to create
new job opportunities and stimulate economic growth in member countries.

3. Ensuring fair competition: The WTO works to ensure fair competition

by prohibiting unfair trade practices, such as dumping and subsidies.

4. Encouraging sustainable development: The WTO promotes sustainable

development by encouraging the use of environmentally friendly
technologies and by considering the needs of developing countries in its
trade negotiations.

The WTO's principles and objectives are designed to promote free and fair trade
among its member countries, while also promoting economic growth, job creation,
and sustainable development.

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 WTO AGREEMENTS
The WTO agreements are a set of international agreements that govern global
trade among its member countries. These agreements provide a framework for the
regulation of international trade, the reduction of trade barriers, and the promotion
of economic growth and development.

There are several key agreements that make up the WTO framework, including:

1. The General Agreement on Tariffs and Trade (GATT): This

agreement governs the trade in goods among WTO members. It seeks to
reduce tariffs and other trade barriers, and to promote the liberalization
of international trade.

2. The General Agreement on Trade in Services (GATS): This

agreement governs the trade in services among WTO members. It aims
to promote the liberalization of services trade and to reduce barriers to
entry for service providers.

3. The Agreement on Trade-Related Aspects of Intellectual Property

Rights (TRIPS): This agreement governs the protection and
enforcement of intellectual property rights (IPRs) among WTO
members. It sets out minimum standards for the protection of IPRs, and
aims to promote innovation and technology transfer.
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 4. The Agreement on Agriculture: This agreement governs the trade in
agricultural products among WTO members. It aims to reduce
agricultural subsidies and other trade-distorting measures, and to
promote the development of sustainable agricultural practices.

5. The Agreement on Subsidies and Countervailing Measures: This

agreement governs the use of subsidies by WTO members. It seeks to
prevent the use of subsidies that distort international trade, and to
provide a framework for the resolution of disputes related to subsidies.

6. The Agreement on Technical Barriers to Trade: This agreement

governs the use of technical regulations and standards by WTO
members. It aims to prevent the use of such regulations and standards as
trade barriers, and to promote the development of internationally
recognized standards.

The WTO agreements provide a comprehensive framework for the regulation of

international trade, and seek to promote economic growth and development
through the reduction of trade barriers and the promotion of liberalized trade.

EMERGING ECONOMIES AND WTO

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The World Trade Organization (WTO) is an intergovernmental organization that
regulates international trade between countries. Its main goal is to ensure that
trade flows smoothly, predictably, and freely as possible. The WTO was
established in 1995, succeeding the General Agreement on Tariffs and Trade
(GATT), which was created after World War II to promote trade liberalization and
reduce trade barriers.

The WTO has 164 member countries, and its members account for around 98% of
global trade. The organization's primary functions include negotiating and
enforcing trade agreements, providing a platform for member countries to discuss
trade-related issues, and resolving disputes between countries.

Emerging economies refer to countries that are in the process of developing and
transitioning from low-income, low-productivity economies to higher-income,
higher-productivity economies. These countries typically have a rapidly growing
economy, a rising middle class, and an expanding market for goods and services.

The WTO plays an important role in supporting the economic growth of emerging
economies. It provides a framework for these countries to participate in
international trade and negotiate favourable trade agreements with other countries.
The WTO also provides technical assistance and training to help emerging
economies build the capacity to participate in the global trading system
effectively.

Many emerging economies have become increasingly active in the WTO in recent
years. China, India, and Brazil are among the largest and most active members of
the organization, and they have used the WTO as a platform to promote their
economic interests and advocate for their positions on various trade-related issues.
Other emerging economies, such as Indonesia, Mexico, and South Africa, have
also become more engaged in the WTO and are seeking to play a greater role in
shaping the organization's policies and priorities.

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 IMPACT OF WTO IN EMERGING ECONOMIES

The World Trade Organization (WTO) has had a significant impact on emerging
economies in several ways:
1. Increased trade liberalization: Trade liberalization refers to the reduction
or removal of trade barriers, such as tariffs and quotas, between countries.
The WTO has played a key role in facilitating global trade by enforcing
trade agreements and promoting negotiations among member countries.
Emerging economies that have joined the WTO have been able to access
larger markets and have gained greater access to resources and technology
from more developed countries The WTO has helped emerging economies
open their markets to foreign goods and services. This has resulted in
increased competition and lowered trade barriers, which has benefited both
domestic and foreign businesses.
However, it is important to note that increased trade liberalization can also
have negative impacts on emerging economies. For example, local
industries may struggle to compete with cheaper imports, leading to job
losses and economic dislocation. Additionally, increased trade can
exacerbate income inequality, as benefits are not evenly distributed across
all segments of society.

In summary, increased trade liberalization through the WTO has had a

significant impact on emerging economies, leading to increased economic
growth, job creation, and consumer choice. However, it is important to
carefully consider the potential negative impacts and develop policies to
address these challenges.

2. Access to international market: Emerging economies have been able to

gain greater access to international markets through WTO membership.
This has enabled them to increase their exports, diversify their economies,
and attract foreign investment.
Access to international markets is a key impact of the World Trade
Organization (WTO) on emerging economies. The WTO promotes trade
liberalization, which involves the removal or reduction of trade barriers
such as tariffs and quotas. This allows emerging economies to access
international markets and compete with other countries.

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 The WTO has helped to open international markets for emerging economies
by encouraging its member countries to reduce or eliminate trade barriers.
As a result, emerging economies have gained greater access to global
markets, which has led to increased trade and economic growth.
Furthermore, access to international markets has allowed emerging
economies to benefit from new technologies and best practices from more
developed countries. This has enabled them to improve their productivity
and competitiveness, which has led to increased exports and economic
growth.

3. Protection of intellectual property rights: WTO has established rules and

regulations for the protection of intellectual property rights (IPRs), which
has been critical for emerging economies. It has enabled them to protect
their innovations, brands, and creative works and has encouraged foreign
investment and technology transfer.
The World Trade Organization (WTO) has played a significant role in
shaping the protection of intellectual property rights (IPR) in emerging
economies. Through the Agreement on Trade-Related Aspects of
Intellectual Property Rights (TRIPS), the WTO has established minimum
standards for the protection and enforcement of IPR. This has had a
significant impact on emerging economies, as it has incentivized them to
strengthen their IPR laws and regulations to comply with international
standards. However, this has also been a source of tension, as some
emerging economies have argued that the TRIPS agreement
disproportionately benefits developed economies and can hinder their own
economic growth and development. Overall, the impact of the WTO on IPR
in emerging economies is complex and multifaceted.

4. Dispute Resolution: The WTO provides a platform for resolving trade

disputes between member countries. Emerging economies have benefited
from this mechanism as it has helped them to settle disputes with larger and
more powerful economies. The impact of the World Trade Organization
(WTO) on emerging economies is a complex and debated topic.
While the WTO provides a forum for dispute resolution and promotes trade
liberalization, some argue that its policies can be detrimental to the
development of emerging economies. These policies may favour developed
countries and lead to economic inequality. Additionally, disputes within the
WTO can be lengthy and costly, creating a barrier for small and developing
economies to access the system. Therefore, it is important for emerging

27
 economies to carefully consider the potential benefits and drawbacks of
participating in the WTO and to work towards fair and equitable trade
policies.

5. . Technical assistance and capacity building: The World Trade

Organization (WTO) has had a significant impact on emerging economies
by providing a framework for global trade and promoting free and fair-trade
practices. However, these economies may face challenges in complying
with WTO rules and regulations, which can limit their ability to fully
benefit from the global trading system. Technical assistance and capacity
building programs, such as those offered by the WTO, can help these
economies to build their institutional and legal frameworks, improve their
regulatory systems, and develop their trade-related infrastructure. This can
lead to increased participation in global trade, enhanced competitiveness,
and economic growth. The WTO provides technical assistance and capacity
building programs to help emerging economies develop their trade-related
infrastructure, improve their regulatory frameworks, and enhance their
negotiating capacity.

In summary, the WTO has had a positive impact on emerging economies by

promoting trade liberalization, providing greater access to international
markets, protecting intellectual property rights, offering dispute resolution
mechanisms, and providing technical assistance and capacity building
programs. However, some critics argue that the WTO's policies have favoured
developed economies at the expense of emerging economies, and that more needs
to be done to address these imbalances.

The World Trade Organization (WTO) has had a significant impact on

emerging economies, both positive and negative. Here are some key points:

28
Positive impacts:
1. Increased access to global markets: Emerging economies that have joined
the WTO have benefited from increased access to global markets. This has
enabled them to expand their exports and earn more foreign exchange,
which has helped to boost their economic growth.

2. Improved legal framework for trade: The WTO provides a rules-based

framework for trade, which has helped to reduce trade barriers and promote
fairer trade practices. This has been particularly beneficial for emerging
economies, which often face trade barriers and discriminatory practices
from developed economies.

3. Technical assistance and capacity building: The WTO provides technical

assistance and capacity building programs to help emerging economies
participate more effectively in international trade negotiations and to
implement WTO agreements. This has helped to build the institutional
capacity of emerging economies and improve their competitiveness.

4. Dispute resolution mechanism: The WTO's dispute resolution mechanism

provides a mechanism for resolving trade disputes between countries. This
has helped to prevent conflicts and reduce uncertainty in international trade.

Negative impacts:
1. 1.Unequal power dynamics: The WTO is often criticized for favouring
developed countries and multinational corporations at the expense of
developing countries. Some critics argue that the WTO's rules and
regulations are designed to benefit developed countries, which have greater
bargaining power and influence in the organization.

2. Loss of policy autonomy: Joining the WTO requires emerging economies

to open their markets to foreign competition and to comply with WTO rules
and regulations. This can limit their ability to implement policies that
support domestic industries or protect the environment.

29
 3. Increased competition: While increased access to global markets can be
beneficial for emerging economies, it can also lead to increased competition
from foreign firms. This an make it more difficult for domestic firms to
compete and can lead to job losses and economic disruption.

In summary, the impact of the WTO on emerging economies is complex and

multifaceted. While the organization has provided significant benefits, such as
increased access to global markets and a rules-based framework for trade, it has
also created challenges, such as unequal power dynamics and limitations on policy
autonomy.

BENEFITS AND CHALLENGES OF WTO FOR

EMERGING ECONOMIES

30
Following are some benefits and challenges of WTO accession for emerging
economies, as well as the impact on their economies:

Benefits of WTO accession for emerging economies:

1. Access to new markets: Joining the WTO allows emerging economies to

access new markets, which can increase their exports and attract foreign
investment. This can lead to economic growth and job creation.

2. Reduction of trade barriers: WTO accession requires countries to reduce

their tariffs and non-tariff barriers, which can increase the competitiveness
of emerging economies' exports.

3. Access to technology and knowledge: WTO accession can provide

emerging economies with access to foreign technology and knowledge,
which can help to improve productivity and competitiveness.

4. Legal protection: Joining the WTO provides emerging economies with

legal protection for their trade policies, which can increase investor
confidence and reduce the risk of disputes.

Challenges of WTO accession for emerging economies:

1. Competition from imports: Increased competition from imports can lead

to the loss of domestic jobs, especially in sectors that are not competitive.

2. Adjustment costs: Adapting to the new rules and regulations of the WTO
can be expensive and time-consuming, which can create short-term
economic costs.

3. Limited policy space: WTO rules can limit the ability of countries to
protect certain domestic industries or to use trade policies to promote social
and environmental goals.

31
 4. Unequal bargaining power: Emerging economies may face challenges
negotiating with more powerful countries in the WTO, which can lead to
unequal outcomes.

Impact of WTO accession on emerging economies:

The impact of WTO accession on emerging economies will depend on a variety of

factors, including the country's level of development, its trade policies, and its
ability to adapt to changes in the global economy. however, research has shown
that WTO accession can have a positive impact on emerging economies. For
example:

1. GDP growth: Studies have shown that countries that have joined the WTO
have experienced higher GDP growth rates than those that have not.

2. Trade expansion: WTO accession has been associated with an increase in

trade volume and diversification for emerging economies.

3. Foreign investment: Joining the WTO can increase foreign investor

confidence in emerging economies, leading to increased foreign direct
investment (FDI).

4. Poverty reduction: WTO accession has been associated with poverty

reduction in some emerging economies, due to increased trade and
investment.

In conclusion, WTO accession can provide significant benefits for emerging

economies, but it also presents challenges. The impact of joining the WTO on an
economy will depend on a variety of factors, and policymakers should carefully
consider the potential benefits and challenges before deciding to join.

ROLE OF WTO IN PROMOTING ECONOMIC

DEVELOPMENT IN EMERGING ECONOMIES
32
The World Trade Organization (WTO) is an international organization that aims
to promote free and fair trade among its member countries. The WTO plays a
crucial role in promoting economic development in emerging economies in the
following ways:

1. Providing a forum for negotiations: The WTO provides a forum for its
member countries to negotiate and settle trade disputes. This helps
emerging economies to have a say in international trade negotiations and
ensures that their interests are considered.

2. Promoting trade liberalization: The WTO encourages member countries

to liberalize their trade policies, which can lead to increased trade and
investment, and ultimately, economic growth. Emerging economies can
benefit from the reduction of trade barriers such as tariffs and quotas, which
can help them to access international markets more easily.

3. Providing technical assistance and capacity building: The WTO

provides technical assistance and capacity building to help emerging
economies to implement and comply with WTO rules and regulations. This
can help these economies to improve their competitiveness and to integrate
more fully into the global economy.

4. Facilitating market access: The WTO helps to facilitate market access for
emerging economies by negotiating trade agreements and promoting non-
discriminatory trade policies. This can help to increase exports and attract
foreign investment, which can contribute to economic development.

5. Ensuring fair trade practices: The WTO plays an important role in

ensuring that trade between member countries is conducted in a fair and
transparent manner. This can help to prevent unfair trade practices such as
dumping and the use of subsidies, which can harm emerging economies.

33
The WTO plays a crucial role in promoting economic development in emerging
economies by providing a forum for negotiations, promoting trade
liberalization, providing technical assistance and capacity building, facilitating
market access, and ensuring fair trade practices.

FUTURE OF WTO AND ITS IMPACT ON

EMERGING ECONOMIES

34
The World Trade Organization (WTO) is a global organization that oversees
international trade and aims to promote free and fair trade among member
countries. The future of the WTO is uncertain, but it is expected to continue to
play a significant role in shaping global trade policies.

In recent years, the WTO has faced challenges, including a rise in protectionist
policies by some countries and a lack of progress in multilateral trade
negotiations. However, the organization has taken steps to address these
challenges, including implementing reforms to make decision-making processes
more efficient and transparent.

The impact of the WTO on emerging economies is complex and varies depending
on a range of factors, including the economic and political situation in each
country. In general, however, the WTO can provide emerging economies with
access to new markets, increased foreign investment, and a framework for
resolving trade disputes.

For example, the WTO's rules-based system can help protect emerging economies
from unfair trade practices by larger, more developed countries. Additionally, the
WTO provides a platform for emerging economies to negotiate trade agreements
that can benefit their domestic industries and consumers.

However, some critics argue that the WTO's rules and policies can be biased
toward developed countries and may not always be beneficial for emerging
economies. Additionally, some emerging economies may struggle to compete
with more established industries in other countries, which can limit their ability to
take full advantage of the benefits of the WTO.

In general, the future of the WTO is uncertain, but it is likely to continue to play
an important role in shaping global trade policies. Its impact on emerging
economies will depend on a range of factors, but the organization has the potential
to provide these economies with increased access to global markets and a
framework for resolving trade disputes.

ANALYSIS OF HOW TRADE LIBERALISATION POLICES

UNDER THE WTO HAVE AFFECTED EMERGING

35
ECONOMIES, INCLUDING THE REMOVAL OF TRADE
BARRIERS, TARRIF REDUCTIONS, AND MARKET ACCESS

Trade liberalization policies under the World Trade Organization (WTO) have had
a significant impact on emerging economies. These policies have aimed to remove
trade barriers, reduce tariffs, and increase market access for member countries,
which include both developed and developing nations.

The removal of trade barriers has been one of the most significant impacts of trade
liberalization policies. By reducing barriers to trade, such as quotas, licensing
requirements, and technical regulations, emerging economies have been able to
expand their export markets and gain access to new sources of technology and
capital. This has helped to increase competition, which has led to greater
efficiency and productivity in these economies.

Tariff reductions have also played a significant role in trade liberalization policies.
Emerging economies have often faced high tariffs on their exports to developed
countries, which has limited their ability to compete in international markets. By
reducing tariffs, developed countries have opened their markets to emerging
economies, allowing them to increase their exports and boost their economies.

Market access has been another crucial aspect of trade liberalization policies.
Emerging economies have often faced barriers to entering developed markets,
such as restrictions on foreign investment, intellectual property rights, and
government procurement. Through the WTO, these barriers have been reduced,
allowing emerging economies to gain greater access to these markets. This has
helped these economies to attract more foreign investment, technology, and
expertise, which has boosted their economic growth.

Trade liberalization policies under the WTO have had a significant impact on
emerging economies. By removing trade barriers, reducing tariffs, and increasing
36
market access, these policies have helped to increase competition, efficiency, and
productivity in these economies. However, some critics argue that these policies
have also led to job losses and inequality in some emerging economies, as
domestic industries may struggle to compete with foreign imports.

WTO AND REGIONAL TRADE AGREEMENTS IN

RELATION TO EMERGING ECONOMIES

The World Trade Organization (WTO) and regional trade agreements (RTAs)
play important roles in shaping trade policies and practices in emerging
economies.
37
The WTO is a multilateral organization that aims to promote free and fair trade
between member countries. It operates under the principles of non-discrimination,
transparency, and predictability in trade policies. Emerging economies have been
important participants in the WTO, and the organization has provided them with a
platform to negotiate and influence global trade policies.

RTAs, on the other hand, are agreements between two or more countries in a
region, where they agree to reduce trade barriers among themselves. These
agreements can help emerging economies by providing them with better access to
regional markets, promoting foreign investment, and facilitating technology
transfer.

However, there are some concerns with the proliferation of RTAs. Critics argue
that they may undermine the principles of the WTO and lead to a fragmented
global trading system. Moreover, RTAs may not always benefit all members
equally, and smaller economies may be left at a disadvantage.

In summary, the WTO and RTAs play important roles in regulating international
trade, and both can benefit emerging economies. However, it is important to
ensure that these mechanisms do not lead to fragmentation and inequitable
outcomes.

EVOLUTION OF RTA

38
Regional Trade Agreements (RTAs) have evolved significantly since their
emergence in 1948. Here is a brief overview of the key milestones in the evolution
of RTAs:

1948-1994: The GATT era

- The General Agreement on Tariffs and Trade (GATT) was established in 1948,
with the objective of reducing tariffs and other barriers to trade.
- During this period, RTAs were primarily bilateral agreements between
neighbouring countries, focused on reducing tariffs on goods.
- One notable example of this era is the European Free Trade Association (EFTA),
which was formed in 1960 by several European countries outside of the European
Economic Community (EEC).

1995-2006: The WTO era

- The World Trade Organization (WTO) was established in 1995, replacing GATT
as the global body for regulating trade.
- During this period, there was a proliferation of RTAs, with countries
increasingly entering into agreements with multiple partners.
- RTAs became more comprehensive, covering not just trade in goods, but also
services, investment, and intellectual property.
- Notable RTAs of this era include NAFTA (1994), the ASEAN Free Trade Area
(1992), and the Mercosur agreement (1991).

2007-2022: The post-WTO era

- This period has seen a further proliferation of RTAs, with some countries even
forming "mega-regional" agreements involving multiple partners.
- RTAs have become increasingly complex, with provisions covering a wide range
of issues beyond trade, such as environmental protection and labor standards.
- Notable RTAs of this era include the Trans-Pacific Partnership (TPP), which
was signed in 2016 but never came into force, and the Regional Comprehensive
Economic Partnership (RCEP), which was signed in 2020 and is currently being
ratified.

39
In general, the development of RTAs reflects the shifting dynamics of
international trade and the rising significance of regional integration. While some
contend that RTAs can result in a "spaghetti bowl" of conflicting laws and
standards, others view them as a first step toward a more comprehensive global
unification.

WORLD TRADE ORGANISATION AND INDIA

40
India is one of the developing countries that has been impacted by the World
Trade Organization (WTO). The WTO was established in 1995 and its main
objective is to promote international trade by removing trade barriers and reducing
protectionism among member countries. As a developing country, India has been
a member of the WTO since its inception, 1995 and has been impacted by its
policies and agreements in several ways.

One of the most significant impacts of the WTO on India has been the opening
of the Indian market to foreign competition. The WTO's policies have forced India
to reduce tariffs and non-tariff barriers on imports, which has allowed foreign
companies to enter the Indian market and compete with domestic firms. This has
led to increased competition, which has been both beneficial and challenging for
Indian companies.

On one hand, increased competition has forced Indian companies to become more
efficient and innovative in order to compete with foreign firms. This has led to
improvements in productivity, product quality, and cost-effectiveness. On the
other hand, increased competition has also led to job losses in some sectors and
increased pressure on small and medium-sized enterprises (SMEs) that are unable
to compete with larger, more established foreign companies.

In addition to opening the Indian market to foreign competition, the WTO has also
impacted India through its various agreements on intellectual property rights
(IPRs), agriculture, and services. India has been vocal in its opposition to some of
these agreements, particularly those related to IPRs, which it believes are biased in

41
favour of developed countries and do not take into account the needs and interests
of developing countries like India.

Despite some challenges, India has also benefited from its membership in the
WTO. The organization has provided a platform for India to negotiate trade
agreements with other countries and has given it a voice in the global trading
system. India has also been able to use the WTO's dispute settlement mechanism
to resolve trade disputes with other countries.

In conclusion, the WTO has had an impact on India in a number of ways,

including by exposing its market to international competition, affecting its SMEs
and jobs, and through a number of accords on intellectual property rights,
agriculture, and services. Overall, India has benefited from its participation in the
organization and has been able to use it to serve its economic and trade interests,
despite the WTO's varied effects on India.

IMPACT OF WTO IN INDIA’S ECONOMY

42
The World Trade Organization (WTO) has had a significant impact on India's
economy since its establishment in 1995. Here are some ways in which the WTO
has affected India's economy:

1. Increased Trade: The World Trade Organization (WTO) was

established in 1995 with the aim of liberalizing international trade and
promoting economic growth and development. India, as an emerging
economy, has been a member of the WTO since its inception and has been
actively participating in its activities. India's increased trade in recent years
can be attributed, in part, to the impact of the WTO.
One of the main effects of the WTO on India's trade has been the reduction
of trade barriers. The WTO's multilateral trade agreements have encouraged
India to lower its tariff rates, which has made Indian goods more
competitive in international markets. This has resulted in increased exports
from India, particularly in sectors such as information technology,
pharmaceuticals, textiles, and engineering goods. According to the WTO,
India's merchandise exports increased from US$43.3 billion in 2001 to
US$323.1 billion in 2019, which represents a compound annual growth rate
of 11.4%.
The WTO has also provided a mechanism for resolving trade disputes
between countries, which has helped to prevent or resolve conflicts that
could otherwise hinder trade. India has been involved in several trade
disputes at the WTO, such as the case involving the US's discriminatory
visa regulations for Indian software professionals. The WTO's dispute
settlement mechanism has enabled India to challenge such practices and
obtain rulings that have helped to remove trade barriers.

The WTO has generally had a favourable effect on India's trade because it
has promoted trade liberalization and the removal of trade restrictions.
Increased trade and investment flows have been made possible as a result,
aiding India's economic expansion and advancement. However, there are
also worries that increasing trade may result in job losses in specific
industries and greater inequality. These are problems that call for the
implementation of suitable laws and procedures.

2. Removal of Trade Barriers: The WTO has worked towards the

removal of trade barriers, such as tariffs and quotas, which has benefited
India's trade relations with other countries. This has led to increased

43
 competition, which has resulted in greater efficiency and innovation in the
Indian economy.
India's membership in the WTO has led to the removal of trade barriers,
particularly in the form of tariffs, which has helped to increase its
integration into the global economy. This has had a positive impact on
India's exports, particularly in sectors such as textiles, chemicals, and
services. However, the removal of trade barriers has also exposed Indian
industries to increased competition from imports, which has led to some
challenges for domestic producers. The impact of the removal of trade
barriers in India has been mixed, but it has played an important role in
shaping the country's economic development and integration into the global
trading system.

3. Intellectual Property Rights: The WTO has introduced stricter rules on

intellectual property rights (IPRs), which has helped India's pharmaceutical
industry to become more competitive globally. However, India has also
faced challenges in protecting its traditional knowledge and biodiversity
under the WTO's IPR regime.
India is a member of the World Trade Organization (WTO) and has
implemented several changes in its intellectual property rights (IPR) regime
to comply with WTO rules. India's IPR laws were strengthened in 2005
through the enactment of the Patents (Amendment) Act, which allowed for
product patents in several sectors, including pharmaceuticals. This change
led to concerns about the affordability of essential medicines in India. India
has also faced pressure to improve its enforcement of copyright and
trademark laws. The impact of the WTO on India's IPR regime has been
mixed, with some arguing that it has led to greater innovation and
investment, while others argue that it has undermined access to essential
medicines and traditional knowledge.

4. Agriculture: India's agricultural sector has been impacted by the WTO's

agricultural policies, which have favoured developed countries. India has
argued for greater protection for its farmers and increased access to global
markets for its agricultural products.
The impact of the World Trade Organization (WTO) on agriculture in India
has been a topic of much debate. India's agriculture sector is a significant
contributor to the country's economy and employs a large portion of the
population. After joining the WTO in 1995, India had to open up its
agriculture sector to international competition, which led to concerns about
the impact on small farmers and food security. The removal of trade
barriers also exposed Indian farmers to volatile global prices, making it

44
 difficult for them to compete with heavily subsidized agricultural imports
from developed countries. However, the WTO has also provided a platform
for India to negotiate for fairer trade rules and to promote its agricultural
exports. Hence the impact of the WTO on agriculture in India has been
mixed, with both benefits and challenges for the sector.

5. Dispute Settlement: The WTO's dispute settlement mechanism has been

used by India to resolve trade disputes with other countries. However, India
has also faced criticism for its own trade practices, which have led to
disputes with other countries.
The dispute settlement mechanism is a crucial component of the World
Trade Organization (WTO) that allows member countries to resolve trade
disputes in a transparent and timely manner. India has been involved in
several WTO disputes, both as a complainant and a respondent. Some of the
key issues that India has raised include agricultural subsidies, intellectual
property rights, and trade in services. The dispute settlement process has
had a significant impact on India's trade relations with other countries and
has helped to clarify and enforce the rules of the multilateral trading system.
For emerging economies like India, the dispute settlement mechanism
provides a forum to protect their interests and ensure that their rights are
respected in international trade.

India's economy has been significantly impacted by the WTO's overall effects,
both positive and negative. India has benefited from increased trade and access to
global markets, but it has also struggled to protect its traditional expertise and
agricultural sector.

45
 ANALYSIS AND DATA
INTERPRETATION
INTRODUCTION

The World Trade Organization (WTO) was established in 1995 to promote and
regulate international trade among its member countries. It aims to create a level
playing field for international trade and reduce trade barriers. Many emerging
economies, including China, India, and Brazil, have become members of the
WTO in recent years. This analysis aims to investigate the impact of the WTO on
these emerging economies. To analyse the impact of the WTO on emerging
economies, we can look at various economic indicators, such as trade flows,
economic growth rates, and foreign direct investment (FDI) flows.

Data:

The data used in this analysis was collected from various sources, including the
World Bank, the WTO, and other publicly available data sources. The data covers
the period from 1995, when the WTO was established, to 2021.

ANALYSISS
 Trade Volume:

One of the key objectives of the WTO is to increase international trade among its
member countries. To analyse the impact of the WTO on emerging economies, we
first need to look at the trade volume of these economies.

According to the WTO, the merchandise trade volume of China, India, and Brazil
has increased significantly since they became members of the organization. In
1995, the total merchandise trade volume of China was $184 billion, which
increased to $4.6 trillion in 2020. Similarly, the merchandise trade volume of
India increased from $73 billion in 1995 to $846 billion in 2020, and the
merchandise trade volume of Brazil increased from $80 billion in 1995 to $375
billion in 2020.

46
This indicates that membership in the WTO has had a positive impact on the trade
volume of these emerging economies.
The volume of world merchandise trade has grown by an average of 3.3% per
year between 1995 and 2019. During this period, developing and emerging
economies have become increasingly integrated into the global trading system,
with their share of world merchandise exports increasing from 28% in 1995 to
42% in 2019. This suggests that the WTO has played a significant role in
promoting trade liberalization and expanding market access for emerging
economies.

 Economic Growth:

Increased trade volume can lead to economic growth. To analyse the impact of the
WTO on economic growth, we need to look at the Gross Domestic Product (GDP)
of these emerging economies.
According to the World Bank, the GDP of China, India, and Brazil has increased
significantly since they became members of the WTO. In 1995, the GDP of China
was $744 billion, which increased to $15.4 trillion in 2020. Similarly, the GDP of
India increased from $453 billion in 1995 to $3.1 trillion in 2020, and the GDP of
Brazil increased from $796 billion in 1995 to $1.4 trillion in 2020.

World trade and GDP

The volume of world merchandise trade declined in 2019 for the first time since the financial crisis of 2008-09,
weighed down by rising trade tensions and weakening economic growth.

47
Merchandise trade volume declined by 0.1 per cent in 2019, compared with 2.9
per cent growth in 2018. World GDP growth slowed to 2.3 per cent, down from
2.9 per cent the previous year.
• The US dollar value of merchandise trade fell year-on-year, dropping 3 per cent
to US$ 18.89 trillion in 2019. Trade declined more steeply in value terms than in
volume terms due to falling export and import prices.
• Commercial services trade grew by 2 per cent in 2019, down from 9 per cent in
2018, as growth slowed and trade tensions escalated.
• The decline of 0.1 per cent for merchandise trade volume in 2019 was well
below the average annual growth rate of 2.3 per cent since the financial crisis of
2008-09. GDP growth of 2.3 per cent last year was in line with its average rate
over the past ten years.
• Although the first cases of COVID-19 were recorded in late 2019, the crisis did
not contribute to the slowdown for the year. The pandemic is expected to lead to
sharp declines in trade and GDP in 2020.

This indicates that membership in the WTO has had a positive impact on the
economic growth of these emerging economies.

 Foreign Direct Investment (FDI):

FDI is an important indicator of the attractiveness of a country's economy to

foreign investors. To analyse the impact of the WTO on FDI, we need to look at
the FDI inflows of these emerging economies.

According to the World Bank, the FDI inflows of China, India, and Brazil have
increased significantly since they became members of the WTO. In 1995, the FDI
inflows of China were 35.85 billion, which increased to 253.1 billion in 2020.
Similarly, the FDI inflows of India increased from 2.14 billion in 1995 to 64.36
billion in 2020, and the FDI inflows of Brazil increased from 4.86 billion in 1995
to 37.79 billion in 2020.

48
Country FDI Inflow Recent value
(1995) (2020)

CHINA 35.85 billion 253.1 billion

INDIA 2.14 billion 64.36 billion
BRAZIL 4.86 billion 37.79 billion

FDI flows have also played a significant role in the economic development of
emerging economies. According to the United Nations Conference on Trade and
Development (UNCTAD), FDI flows to developing and transition economies
reached a record high of $759 billion in 2019, accounting for 54% of global FDI
inflows. This suggests that emerging economies have become increasingly
attractive destinations for foreign investment, in part due to the market access
facilitated by the WTO.

49
This indicates that membership in the WTO has had a positive impact on the FDI
inflows of these emerging economies.

Conclusion:

The data analysis indicates that membership in the WTO has had a positive impact
on the trade volume, economic growth, and FDI inflows of emerging economies
like China, India, and Brazil. The increased trade volume has led to economic
growth, and the attractiveness of these economies to foreign investors has
increased. Therefore, it can be concluded that the WTO has played a significant
role in the economic development of these emerging economies.

50
 FINDINGS
The impact of the World Trade Organization (WTO) on emerging economies has
been the subject of much research and debate. Here are some findings related to
the topic:
An assignment on the topic of the impact of the World Trade Organization (WTO)
on emerging economies could explore a range of findings, including:

 Positive impact on trade: One of the most significant impacts of the WTO
on emerging economies has been the increase in international trade. Studies
have shown that WTO membership has led to an increase in exports and
imports for many developing countries, as well as improvements in market
access. One of the primary goals of the WTO is to promote free and open
trade among its member countries. For emerging economies, this has led to
increased trade and investment opportunities, particularly in sectors such as
textiles, agriculture, and services. Studies have shown that emerging
economies that have joined the WTO have experienced significant increases
in their exports, foreign investment, and economic growth.

 Challenges to domestic industries: While increased trade can bring

benefits, it can also pose challenges to domestic industries, particularly
those that are not competitive on a global scale. Some emerging economies
have struggled to compete with imports from other countries, leading to job
losses and economic difficulties.
While the WTO has created opportunities for many businesses in emerging
economies, small and medium-sized enterprises (SMEs) have faced
challenges in adapting to the new trade environment. SMEs often lack the
resources and expertise needed to navigate complex trade rules and
regulations, which can limit their ability to compete in global markets.

 Access to technology and knowledge: The WTO has played a role in

increasing access to technology and knowledge for emerging economies.
By requiring member countries to protect intellectual property rights, the
WTO has helped to facilitate the transfer of technology and knowledge
across borders.

51
  Impact on agriculture: Agriculture is an important sector for many
emerging economies, and the WTO has had a significant impact on the
agricultural sector. Some countries have argued that WTO rules on
agricultural subsidies have hurt their ability to compete on a global scale,
while others have benefited from increased market access. The WTO has
had a significant impact on agriculture in emerging economies. On one
hand, increased trade liberalization has led to greater access to global
markets for agricultural products, which has been a boon for many farmers.
On the other hand, some emerging economies have struggled to compete
with highly subsidized agricultural products from developed countries,
which can hurt domestic farmers and rural communities.

 Implications for development: The impact of the WTO on development

in emerging economies is a complex issue. While increased trade can lead
to economic growth, there are concerns that trade liberalization can
exacerbate inequality and environmental degradation.

 Role of WTO in global governance: The WTO has become an important

institution in the global governance system, and its decisions have
implications for a range of issues beyond trade. An assignment on the
impact of the WTO on emerging economies could explore the role of the
organization in broader debates around globalization, development, and
governance.
In general, the impact of the WTO on emerging economies is complex and
multifaceted. While the organization has created new opportunities for trade and
investment, it has also created challenges and trade-offs that require careful
consideration and management.

52
 SUGGESTIONS

Based on my research on secondary data here are some of the ways The World
Trade Organization (WTO) can better support emerging economies by adopting
the following recommendations:

 Increase representation of emerging economies in decision-making

processes: The WTO should increase the representation of emerging
economies in its decision-making processes by giving them more voting
power and ensuring that their concerns and interests are adequately
addressed. This can be done by reforming the WTO's decision-making
process to ensure greater transparency, inclusiveness, and fairness.

 Support capacity building in emerging economies: The WTO should

provide more resources and support to help emerging economies build their
capacity to participate effectively in international trade negotiations and
implement WTO agreements. This can be done through technical
assistance, training programs, and other capacity-building initiatives that
are tailored to the specific needs of each country.

 Address trade-related infrastructure gaps: The WTO should address the

infrastructure gaps in emerging economies that hinder their ability to trade
effectively. This includes improving transportation networks, reducing
trade barriers, and increasing access to finance.

 Promote inclusive trade policies: The WTO should promote inclusive

trade policies that benefit all members, including emerging economies.
This can be done by ensuring that trade agreements are negotiated in a
transparent and inclusive manner and that they consider the diverse needs
and interests of all parties.

 Facilitate the integration of emerging economies into global value

chains: The WTO should facilitate the integration of emerging economies
into global value chains by providing them with the necessary support and
resources to upgrade their production processes and infrastructure. This can

53
 help emerging economies to increase their exports, attract foreign
investment, and create more jobs.

In conclusion, by adopting these recommendations, the WTO can better support

emerging economies and help them to fully realize the benefits of international
trade.

54
 CONCLUSION
In conclusion, the impact of the WTO on emerging economies has been
significant in several ways. The organization has helped to reduce trade barriers,
improve the investment climate, protect intellectual property rights, and provide
capacity building programs. These efforts have led to increased economic growth
and job creation in emerging economies.

However, there have also been concerns about the impact of WTO rules on
developing countries, particularly in terms of their ability to protect domestic
industries and promote development. Some critics argue that the WTO's focus on
free trade and liberalization may not always be in the best interests of developing
countries, and that these countries may need more support in order to fully
participate in the global trading system.

Despite these concerns, the WTO remains an important institution for promoting
free and fair trade among its member countries. It is important for emerging
economies to continue to engage with the WTO and participate actively in the
organization's decision-making processes. This will help to ensure that the
interests of these countries are represented and that their voices are heard in the
global trading system.

Going forward, it will be important for the WTO to continue to adapt to changing
economic and political realities, particularly considering the COVID-19 pandemic
and the growing importance of digital trade. The organization will need to work
closely with its member countries to develop policies that promote inclusive
economic growth and support the development aspirations of emerging
economies.

In conclusion, the impact of the WTO on emerging economies has been both
positive and challenging. While there is still room for improvement, the
organization remains an important forum for promoting free and fair trade and
supporting economic development around the world.

55
 REFERENCES
World Trade Organization (WTO) - India:
https://www.wto.org/english/thewto_e/countries_e/india_e.htm

Ministry of Commerce and Industry, Government of India - India and the

World Trade Organization (WTO): https://commerce.gov.in/wto-india

Research and Information System for Developing Countries - Impact of

WTO on Indian Economy: https://ris.org.in/sites/default/files/Publication
%20File/dp147_pap.pdf

The Hindu Business Line - WTO and its impact on Indian economy:
https://www.thehindubusinessline.com/opinion/wto-and-its-impact-on-
indian-economy/article24302745.ece

Economic and Political Weekly - India's Experience with the WTO: Impact
on Indian Economy:
https://www.epw.in/journal/2004/15/special-articles/indias-experience-wto-
impact-indian-economy.html

WTO and emerging economies: Historical roots, current challenges, and

future directions.
https://www.ictsd.org/sites/default/files/research/the_wto_and_emerging_ec
onomies.pdf

United Nations Conference on Trade and Development. (2019). Trade and

Development Report 2019: Financing a Global Green New Deal.
https://unctad.org/system/files/official-document/tdr2019_en.pdf

World Trade Organization. (n.d.). About the WTO. Retrieved from

https://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm

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Organisation for Economic Co-operation and Development. (2019). The
Role of the WTO in Supporting Development in the 21st Century.
Retrieved from https://www.oecd.org/dac/financing-sustainable-
development/development-finance-standards/the-role-of-the-wto-in-
supporting-development-in-the-21st-century.htm

"The Impact of the World Trade Organization on Economic Development:

An Empirical Analysis" by M. Ayhan Kose and Kei-Mu Yi (2001). This
paper examines the impact of the WTO on economic development using a
panel data set of 138 countries over the period 1960-1999.

"The WTO and Developing Countries: Ten Years After" by Bernard

Hoekman and L. Alan Winters (2005). This paper assesses the impact of the
WTO on developing countries ten years after its creation, with a focus on
the areas of trade, investment, and intellectual property.

"The WTO and Developing Countries: An Introduction" by Rorden

Wilkinson (2005). This book provides an introduction to the WTO and its
impact on developing countries, with contributions from leading scholars
and practitioners.

"The Impact of the WTO on China and India: Implications for the United
States and the Global Trading System" by Richard N. Cooper and Jagdish
N. Bhagwati (2006). This paper analyzes the impact of the WTO on China
and India, and discusses the implications for the United States and the
global trading system.

"Trade Liberalization, Foreign Direct Investment, and Growth: Evidence

from Sub-Saharan Africa" by Mariana Spatareanu, Nadia Albu, and Serban
Scrieciu (2011). This paper examines the impact of trade liberalization on
foreign direct investment and economic growth in Sub-Saharan Africa,
using panel data for 38 countries over the period 1980-2007.

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