I (Meaning and importance of Exports) Unit Structure

3.10.1 Negative Impact- 
1. Impact of TRIPS- 
 
The TRIPS agreement of WTO favours the developed 
countries as compared to the developing countries. Under the 
TRIPs agreement protection is given to intellectual property rights 
such as patents, trade marks, layout designs, etc. The TRIPs 
agreement favours the developed nations as they hold a large 
number of patents. 
The agreement on TRIPS extends to agriculture through the 
patenting of plant varieties. This may have serious implications for 

---

39 
developing countries agriculture including India. Patenting of plant 
varieties may transfer all gains in the hands of MNCs which will be 
in a position to develop almost all new varieties with the help of 
their huge financial resources and expertise. 
The agreement on TRIPs also extends to micro-organisms 
as well. Research in micro-organisms is closely linked with the 
development of agriculture, pharmaceuticals and industrial 
biotechnology. Patenting of micro-organisms will again benefit large 
MNCs as they already have patents in several areas and will 
acquire more at a much faster rate. 
2. Impact of TRIMS- 
 
Agreement on TRIMs requires the treatment of foreign 
investment on par with domestic investment. Due to TRIMs 
agreement, developing countries including India have withdrawn a 
number of measures that restricts foreign investment. This 
agreement also favours the developed nations. Due to huge 
financial and technological resources at their disposal, the MNCs 
from developed countries would play a dominant role in developing 
countries. Besides foreign firms are free to remit profits, dividends, 
and royalties to the parent company, thereby causing foreign 
exchange drain on developing nations.