WTO – Non-Agriculture: TRIPS, TRIMS & Services (Smart Module)

WTO – Non-Agriculture: TRIPS, TRIMS & Services (Block 1)

GS III • Indian Economy • WTO • Intellectual Property • Services Trade

1. Why Non-Agriculture at WTO Matters for India

When we hear WTO, we often think of agriculture and MSP. But some of the most important and controversial issues for India lie in the non-agriculture track, especially:

  • TRIPS – Trade-Related Aspects of Intellectual Property Rights
  • TRIMS – Trade-Related Investment Measures
  • GATS – Services trade (IT, BPO, movement of professionals)

These agreements shape India’s space for pharmaceutical production, industrial policy, technology access, investment rules and export of services. For UPSC, they link economy, diplomacy, public health and development.

UPSC One-Liner: Non-agri issues at WTO decide who controls knowledge (TRIPS), how states regulate investment (TRIMS), and how India exports software & professionals (GATS). 
flowchart TB

  WM[IASNOVA.COM]:::wm

  A["WTO – Non-Agriculture"]:::root --> B["TRIPS
  (Intellectual Property)"]:::n1
  A --> C["TRIMS
  (Investment Measures)"]:::n2
  A --> D["GATS
  (Services Trade)"]:::n3

  B --> B1["Patents, trademarks,
  pharma, copyright"]:::note1
  C --> C1["Local content,
  trade–investment link"]:::note2
  D --> D1["IT, BPO, Mode 4
  (professionals)"]:::note3

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2. TRIPS – Basics and Coverage

TRIPS (Trade-Related Aspects of Intellectual Property Rights) is the WTO agreement that sets minimum global standards for intellectual property (IP) protection. It was part of the Uruguay Round (1986–94) and came into force with the WTO in 1995.

TRIPS covers:

  • Patents – inventions in pharma, biotech, chemicals, etc.
  • Copyrights – books, software, films.
  • Trademarks – brands, logos.
  • Geographical Indications (GI) – Darjeeling Tea, Basmati (debates), etc.
  • Industrial designs, trade secrets and more.
TRIPS Aspect What It Requires UPSC Relevance
Patent Protection 20-year patent term for inventions Pharma pricing, access to medicines
National Treatment Foreign IP holders treated like domestic ones Level-playing field vs domestic industry concerns
Enforcement Effective legal remedies, anti-piracy measures Link to digital economy, piracy debates 
flowchart LR

  WM[IASNOVA.COM]:::wm

  A["TRIPS Agreement"]:::root --> B["Patents"]:::n1
  A --> C["Copyrights & Related Rights"]:::n2
  A --> D["Trademarks & GI"]:::n3
  A --> E["Other IP
  (designs, trade secrets)"]:::n4

  B --> B1["20-year term,
  pharma focus"]:::note1
  D --> D1["Basmati, Darjeeling,
  GI protection"]:::note2

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3. TRIPS & Pharmaceuticals – Public Health vs Profits

For India, the biggest impact of TRIPS is in the pharmaceutical sector. India moved from a process patent system (pre-TRIPS) to a product patent system in 2005, which changed how domestic firms could produce generic medicines.

3.1 Pre-TRIPS vs Post-TRIPS

  • Pre-TRIPS: India allowed only process patents; generic firms could make the same drug using a different process → led to India becoming the “pharmacy of the global South”.
  • Post-TRIPS: India amended its Patent Act (2005) to comply with TRIPS – now product patents are allowed in pharma.

3.2 Safeguards: Doha Declaration & Indian Patent Act

  • Compulsory licensing – State can allow others to produce a patented drug in public interest.
  • Section 3(d) – prevents “evergreening” of patents (minor changes ≠ new patent).
  • Parallel imports – importing cheaper genuine products from another market.
UPSC Mains Angle: India’s IP regime is a TRIPS-compliant but public-health oriented model, balancing innovation incentives with access to affordable medicines.
Dimension Benefit of TRIPS Concern / Risk
Innovation Incentive for R&D, high-tech investment Excessive monopoly power for Big Pharma
Access to Medicines Can use flexibilities like compulsory licences Higher prices where safeguards not used
Indian Generics Move into higher-end R&D, biosimilars Pressure from MNCs, trade negotiations 
flowchart TB

  WM[IASNOVA.COM]:::wm

  A["TRIPS & Pharma
  in India"]:::root --> B["Pre-2005
  Process Patents"]:::n1
  A --> C["Post-2005
  Product Patents"]:::n2
  A --> D["Safeguards"]:::n3

  D --> D1["Compulsory
  Licensing"]:::note1
  D --> D2["Section 3(d) –
  anti-evergreening"]:::note2

  B --> B1["Rise of Indian
  generics"]:::note3
  C --> C1["Stronger MNC
  patent rights"]:::note4

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4. TRIMS – Linking Trade & Investment Policy

TRIMS (Trade-Related Investment Measures) restricts how countries can design their industrial and investment policy when it affects trade in goods. It mainly targets measures that distort trade by forcing certain investment conditions.

4.1 Prohibited TRIMS

  • Local Content Requirements – forcing firms to use a minimum share of domestic inputs.
  • Trade Balancing Requirements – forcing exporters to match imports with exports.
  • Other measures that violate basic GATT principles (national treatment, non-discrimination).

4.2 Why TRIMS Matters for India

  • Reduces policy space for “infant industry” protection.
  • Limits ability to insist on technology transfer or domestic sourcing.
  • India had to modify some FDI policies (e.g., earlier auto sector conditions).
Idea: TRIMS disciplines push countries away from investor performance requirements and towards a more “investor-friendly” regime, which can conflict with developmental needs.
Type of Measure Example TRIMS View
Local Content “40% of components must be sourced domestically” Generally inconsistent with TRIMS
Trade Balancing “Import value must equal export value” Can violate GATT obligations
Export Performance Mandatory export targets for FDI firms Problematic when linked to investment approval 
flowchart LR

  WM[IASNOVA.COM]:::wm

  A["TRIMS"]:::root --> B["Bans certain
  investment conditions"]:::n1
  B --> C["Local Content
  Requirements"]:::n2
  B --> D["Trade Balancing
  Requirements"]:::n3

  C --> C1["Limits 'Make it
  locally' mandates"]:::note1
  D --> D1["Constrains
  export–import linking"]:::note2

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5. GATS – Understanding Services Trade

GATS (General Agreement on Trade in Services) is the WTO framework governing international trade in services. For India, this is critical because services — especially IT, BPO, tourism, health, education and professional services — are the backbone of our external sector.

GATS defines four modes of supply through which services are traded:

Mode Meaning Example Relevance for India
Mode 1
(Cross-border)		 Service crosses border, supplier & consumer stay in their countries Software exports, BPO, online consulting Very important for IT/ITES
Mode 2
(Consumption abroad)		 Consumer goes to another country Medical tourism, students abroad India attracts foreign patients, students
Mode 3
(Commercial presence)		 Foreign company sets up branch/subsidiary Foreign banks in India Linked with FDI in services
Mode 4
(Movement of natural persons)		 Individuals travel to provide services Indian IT professionals onsite, nurses abroad Core Indian demand at WTO
UPSC Key Point: India’s main offensive interest in services is Mode 1 & Mode 4 – software exports and movement of professionals. Rich countries are cautious due to immigration sensitivities. 
flowchart TB

  WM[IASNOVA.COM]:::wm

  A["GATS – 4 Modes
  of Services Trade"]:::root --> B["Mode 1
  Cross-border"]:::n1
  A --> C["Mode 2
  Consumption Abroad"]:::n2
  A --> D["Mode 3
  Commercial Presence"]:::n3
  A --> E["Mode 4
  Movement of Persons"]:::n4

  B --> B1["IT, BPO,
  online services"]:::note1
  E --> E1["Indian professionals
  working overseas"]:::note2

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WTO – TRIPS, TRIMS, GATS: Advanced Issues, Negotiation History & India’s Strategy (Block 2)

GS III • WTO • IP Rights • Services Negotiations • Industrial Policy

6. The Politics of TRIPS – The North–South Divide

TRIPS is the most politically sensitive WTO agreement. It reflects the interests of developed countries (US, EU, Japan) that are home to major pharma, biotech, software, and entertainment firms.

6.1 Why Developed Countries Pushed for TRIPS

  • To stop large-scale copying of patented drugs & technologies.
  • To enforce IP in software, films, and digital content.
  • To protect MNC profits and global value chain dominance.

6.2 Why Developing Countries Resisted

  • Higher drug prices hurt public health (HIV, TB, cancer medicines).
  • Fear of “monopoly capitalism” enabled by patents.
  • Threat to domestic generics, innovation, and self-reliance.
UPSC Angle: TRIPS = a clash between public health and corporate IP interests. India’s legal innovations (Sec 3(d), compulsory licences) show how developing nations can use flexibilities. 
flowchart LR

  WM[IASNOVA.COM]:::wm

  A["TRIPS Politics"]:::root --> B["Developed Nations"]:::n1
  A --> C["Developing Nations"]:::n2

  B --> B1["Patent-heavy industries,
  pharma, software"]:::note1
  C --> C1["Public health,
  cheap generics"]:::note2

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7. India–US Conflicts in TRIPS

India has frequently clashed with the US at the WTO over pharmaceuticals and IP enforcement. The US places India on its Priority Watch List under the Special 301 report.

7.1 Key Flashpoints

  • Compulsory licensing (Bayer vs Natco case for cancer drug).
  • Anti-evergreening clause (Section 3(d)) – disliked by Big Pharma.
  • Drug pricing rules & public interest grounds.
  • IP enforcement in digital markets.

7.2 Why the US Disagrees with India

  • Claims India discourages innovation.
  • Wants stronger protection of biologics & medical technologies.
  • Wants easier market access for pharmaceutical MNCs.
UPSC Mains Point: India balances TRIPS compliance with public health needs — a model praised by WHO and G-77 countries. 
flowchart TB

  WM[IASNOVA.COM]:::wm

  A["India–US
  TRIPS Conflict"]:::root --> B["India's Safeguards"]:::n1
  A --> C["US Demands"]:::n2

  B --> B1["Compulsory licensing,
  Sec 3(d)"]:::note1
  C --> C1["Stronger patent protection"]:::note2

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8. TRIMS: India’s Strategic Concerns

TRIMS restricts India’s ability to use industrial policy. It bans several tools that countries historically used to industrialise.

8.1 Why India Wants TRIMS Reform

  • Local content rules needed for Make in India.
  • Strategic sectors (electronics, solar panels) need tech transfer.
  • Global value chains dominated by rich countries → India wants flexibility.

8.2 India’s Challenges

  • WTO cases against India (solar energy dispute).
  • Pressure to reduce “discriminatory” FDI rules.
  • Difficulty promoting manufacturing without violating TRIMS.
Issue India’s Need TRIMS Restriction
Local Content Boost domestic manufacturing Prohibited
Technology Transfer Self-reliance No mandatory tech-sharing allowed
Export Performance Encourage exports Condition-based FDI rules banned 
flowchart LR

  WM[IASNOVA.COM]:::wm

  A["India & TRIMS"]:::root --> B["India's Requirements"]:::n1
  A --> C["TRIMS Restrictions"]:::n2

  B --> B1["Tech transfer,
  local sourcing"]:::note1
  C --> C1["Ban on local content,
  export conditions"]:::note2

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9. GATS: India’s Negotiation Strategy (Mode 1 & 4)

India has a clear strategic priority in GATS: liberalisation of Mode 1 (software exports) & Mode 4 (movement of professionals).

Why Developed Countries Resist These Modes

  • Immigration & labour market sensitivities.
  • Fear of outsourcing & wage depression.
  • Domestic political pressure against foreign workers.

India’s Demands

  • Easier visas for skilled workers (engineers, doctors, IT professionals).
  • Recognition of qualifications.
  • Social security portability.
  • Stronger commitments on remote services.
UPSC Note: India = “offensive interest” in services; Developed nations = “defensive interest”, especially in Mode 4. 
flowchart TB

  WM[IASNOVA.COM]:::wm

  A["India in GATS"]:::root --> B["Mode 1
  Online Services"]:::n1
  A --> C["Mode 4
  Professionals"]:::n2

  B --> B1["IT, BPO,
  consulting"]:::note1
  C --> C1["Visas, mobility,
  recognition"]:::note2

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10. The Developing Countries’ Coalition – G-33

G-33 is a coalition of developing countries (India, Indonesia, Nigeria, etc.) formed to reform WTO rules that **limit policy space**. Initially focused on agriculture, it now also shapes **services and TRIPS debates**.

Main demands:

  • Policy flexibility for public interest.
  • Protection of traditional knowledge & biodiversity.
  • Reform of TRIMS to allow industrial policy.
  • Greater mobility for service providers (Mode 4).
flowchart LR

  WM[IASNOVA.COM]:::wm

  A["G-33 Group"]:::root --> B["Developing
  Countries"]:::n1
  A --> C["Policy Flexibility"]:::n2
  A --> D["Reform Demands"]:::n3

  D --> D1["TRIPS–TK,
  biodiversity"]:::note1
  D --> D2["Mode 4 mobility"]:::note2

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11. Why Developed Countries Oppose India

Developed nations argue that India:

  • Uses subsidies & industrial policies that distort markets.
  • Protects generics at the expense of patent rights.
  • Wants labour mobility but restricts other areas.
  • Demands flexibility while seeking access abroad.

But the hypocrisy:

  • US & EU give huge “Green Box” subsidies to farmers.
  • Big Pharma uses evergreening to extend monopolies.
  • Rich countries protect their own labour markets.
UPSC Mains Statement: WTO reflects global power asymmetries—developed nations enjoy policy space under new guises (innovation, climate subsidies) while restricting similar space for developing nations.

12. Way Forward for India at WTO – A Balanced Strategy

  • Fight for TRIPS flexibility (compulsory licensing, anti-evergreening).
  • Push Mode 4 aggressively in services negotiations.
  • Reform TRIMS to regain space for industrial policy.
  • Form coalitions (G-33, BRICS, G-77) for bargaining power.
  • Promote tech innovation to reduce dependence on external IP regimes.
  • Defend generic pharma as a global public good.
UPSC-ready Conclusion:
India needs a WTO that recognises developmental asymmetries, preserves policy space for industrialisation, and safeguards public health while remaining integrated into global value chains.

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