Globalization Class Notes PDF

GLOBALIZATION AND EMERGING ECONOMIES TABLE OF CONTENTS TABLE OF CONTENTS 5 CLASS 1 5 Course Overview: Emerging Countries and Globalization 5 Course Structure...

GLOBALIZATION AND EMERGING ECONOMIES TABLE OF CONTENTS TABLE OF CONTENTS 5 CLASS 1 5 Course Overview: Emerging Countries and Globalization 5 Course Structure 5 1. Introduction 5 2. Assessment 6 Key Topics 6 Globalization Trends 6 Historical Periods of Globalization 6 Trade Openness (1870-2021) 6 Impacts of Globalization 7 Benefits 7 Negatives 7 Legal Aspects of Globalization 8 CLASS 2 9 CLASS 2 10 Overview of Global Trade Trends and Impacts 10 The World Trade Organization (WTO) 10 Anti-Dumping Regulations 11 Subsidies Overview 12 Trade and Politics 13 The Evolution of Global Trade and the World Trade Organization 14 Trade Integration and Emerging Economies 15 Foreign Direct Investment and Technology Transfer 15 Skills Development and Market Diversification 15 Free Trade Agreements and Their Implications 15 Internalization of Trade Rules and Norms 15 Equitable Treatment and Development Strategies 16 CLASS 1 Course Overview: Emerging Countries and Globalization Course Structure 1. Introduction - Course structure and expectations - Globalization: parameters and impacts on global economy - Emerging economies: characteristics and relationship to globalization 2. Assessment - Group work - Multiple choice exam for midterm (date to be noted) Key Topics Globalization Trends Historical Periods of Globalization 1. 1870-1914: Industrialization era 2. 1914-1945: Interwar era 3. 1945-1980: Bretton Woods era 4. 1980-2008: Liberalization era 5. 2008-2021: Slowbalization era Trade Openness (1870-2021) - Measured as sum of exports and imports as a percentage of GDP - Key trends: - 1870: ~30%  - Rise to ~40% then decrease to ~30% during Bretton Woods era - Peak of ~60% in 1980s liberalization era - Decline starting in 2009 to ~50% by 2021 Trade Restrictions - Increase in restrictions between 2009-2022 - Affects goods, investments, and trade - Increase in services restrictions, though goods mostly restricted - Example: Russia (due to Ukraine conflict - political factors) Impacts of Globalization Benefits - Lower transaction costs - Access to key goods and services - Technology transfer (technical skills and knowhow) - Technology diffusion - Poverty reduction Negatives - Increased income inequality between countries - Job losses - Underused or unused domestic services - Lacklustre approach to capacity building - Higher prices for goods and services Case Studies - Impact on farmer economies and unfair competition - Call center jobs: opportunities for youth but risk of delocalization and job dependence - Indonesia's nickel production Legal Aspects of Globalization International Laws Facilitating Globalization - Intellectual property laws - Trademark laws - Trade agreements Role of Domestic Laws and Institutions - How domestic laws, institutions and governance structures support globalisation Regulatory Approaches - Debate: Is more or less regulation better for dealing with globalisation's impacts? Additional Resources CLASS 2 SArticles: Herbert, Eti Best, “The Role of World Trade Organisation in International Trade and Investment” (2020) 11:1 Nnamdi Azikiwe U J Int’l L & Juris 47–55. https://heinonline.org/HOL/Page?public=true&handle=hein.journals/naujilj11&div=6&st art_page=47&collection=journals&set_as_cursor=15&men_tab=srchresults “Global trade hits record high of $28.5 trillion in 2021, but likely to be subdued in 2022”, (17 February 2022), online: UNCTAD. https://unctad.org/news/global-trade-hits-record-high-285- trillion-2021-likely-be- subdued-2022 “Canada hits China-made electric cars with 100% tariff”, João da Silva, BBC News, Aug. 27, 2024 online: https://www.bbc.com/news/articles/cm2n091v4m5o “Russia To Legalize Use Of Cryptocurrency In International Trade: Report | Nasdaq”, online: https://www.nasdaq.com/articles/russia-to-legalize-use-of-cryptocurrency-in-internationaltrade:- report Videos: 1. World101, International Trade Explained | World101 (2019). https://www.youtube.com/watch?v=HfN8BnRJryQ&ab_channel=World101 2. One Minute Economics, Subsidies Explained in One Minute (2016). https://www.youtube.com/watch?v=vlm09G2mAg4&ab_channel=OneMinuteEconomics 3. CNBC International, How do tariffs work? | CNBC Explains (2018). https://www.youtube.com/watch?v=LKCMnCZyxiQ&ab_channel=CNBCInternational 4. DW Documentary, The deceptive promise of free trade | DW Documentary (2018). https://www.youtube.com/watch?v=DnW9ZQtI1_E&ab_channel=DWDocumentary September 20: Impact of Globalization on EE: Actors and Interests in EE (Case Study-F CLASS 2 Overview of Global Trade Trends and Impacts In today's class, we delved into the complex dynamics of global trade, focusing on the interplay between developed and emerging economies. An emerging economy is defined as a developing country that has begun to benefit significantly from international trade relationships. These nations are characterized by increasing exports of goods and services, notable growth in various economic sectors, and rising GDP figures. However, it's crucial to understand that despite these positive indicators, emerging economies often face substantial power imbalances when interacting with developed countries in the global marketplace. These imbalances manifest in several ways. Firstly, emerging economies frequently lack adequate representation in international trade forums and organizations. Secondly, they often struggle with limited resources, which can hinder their ability to compete on equal footing with more established economic powers. Lastly, many emerging economies grapple with over-specialization in their export portfolios. This phenomenon is particularly evident in countries that heavily rely on exporting a narrow range of commodities such as sugar, coffee, or bananas. Such specialization can leave these economies vulnerable to market fluctuations and limit their overall economic resilience. Examining recent global trade trends, we observed that after a significant decline in 2020 due to the COVID-19 pandemic, global trade in both goods and services has resumed growth in 2024. However, it's important to note that within this broader trend, there are nuances. Specifically, in 2024, there has been a decline in merchandise trade across global economies. This contrasts with the trade in services sector, which has demonstrated moderate positive growth rates. These divergent trends highlight the complex and sometimes unpredictable nature of global trade patterns. The World Trade Organization (WTO) The World Trade Organization (WTO) plays a pivotal role in regulating international trade. This organization serves multiple critical functions in the global trade ecosystem. Primarily, the WTO is responsible for regulating international trade practices and enforcing trade agreements, with the General Agreement on Tariffs and Trade (GATT) being one of the most significant. The WTO also works diligently to establish common frameworks that facilitate smoother trade relations between nations. Additionally, it serves as an arbiter in trade disputes, providing a structured mechanism for resolution when conflicts arise between member states. One of the WTO's core principles is the promotion of non-discrimination and equal treatment of goods in international trade. This ethos underpins many of the organization's policies and decisions, aiming to create a more level playing field in global commerce. The WTO operates as a rules-based, member-driven system. Its organizational structure is divided into three main bodies, each with distinct responsibilities: The General Council stands at the apex of the WTO's structure. As the highest decision- making body, it convenes regularly to carry out the WTO's myriad functions. The council comprises representatives from all member countries, ensuring a diverse range of perspectives in its deliberations. The Dispute Settlement Body (DSB) is tasked with managing trade conflicts between member states. When a dispute arises, the DSB establishes a panel of experts to hear the case. After careful consideration, the DSB either accepts or rejects the decision rendered by this panel or, if applicable, the appellate body. This mechanism provides a structured approach to resolving international trade disagreements. The Trade Policy Review Body plays a crucial role in maintaining transparency and adherence to WTO rules. This body is responsible for reviewing trade ecosystems, identifying and resolving discrepancies in current trade policies, and making recommendations for improvements. The Trade Policy Review Mechanism, a key tool employed by this body, enhances the transparency of members' trade policies, encourages adherence to WTO rules, and subjects all members to periodic reviews. These reviews involve comprehensive reports produced both by the member country under scrutiny and the WTO Secretariat. Anti-Dumping Regulations Anti-dumping regulations form a critical component of international trade law. To understand these regulations, we must first define dumping in the context of international trade. A product is considered "dumped" when it is introduced into another country's market at a price below its normal market value. More specifically, dumping occurs when the export price of a product is less than the comparable price for similar products in the exporting country's domestic market, under ordinary trade conditions. Anti-dumping measures are policy tools used by importing countries to counter the practice of dumping. These measures typically take the form of duties imposed on imported goods that are deemed to be unfairly priced. The primary aim of such measures is to prevent an influx of artificially cheap imports that could potentially harm domestic producers. It's important to note that the focus of anti-dumping investigations is not on the practice of dumping itself, but rather on whether the duties imposed by the importing country on the alleged dumped goods are justifiable and compliant with the WTO's Anti-Dumping Agreement. Several key legal provisions govern the application of anti-dumping measures. Article 3.4 of the Anti-Dumping Agreement outlines the criteria for injury determination. For anti-dumping duties to be justified, there must be evidence of "material injury," a threat of such injury, or material retardation of the establishment of a domestic industry. This injury must be directly linked to the dumped imports, as stipulated in Article 3.5, which requires a demonstrable causal relationship between the dumped imports and the harm to domestic producers. Another important provision is found in Article 5.8 of the Agreement, which introduces the concept of de minimis levels. This article suggests that if the margin of dumping is negligible, anti-dumping proceedings may be terminated. This provision helps prevent the misuse of anti-dumping measures for minor pricing discrepancies. Subsidies Overview Subsidies represent another significant area of focus in international trade law. A subsidy can be defined as financial aid provided by a government to support domestic production and improve the competitive position of its industries, either in domestic or foreign markets. This definition was notably articulated in the Australia - Subsidies on Ammonium Sulphate case, decided by a GATT Panel in 1950. The WTO's Agreement on Subsidies and Countervailing Measures (SCM Agreement) provides a comprehensive framework for addressing subsidies in international trade. Article 1 of this agreement offers a precise definition of what constitutes a subsidy under WTO rules. According to this article, a subsidy exists when there is a financial contribution by a government or public body, and this contribution confers a benefit to the recipient. Article 2 of the SCM Agreement introduces the concept of specificity. For a subsidy to be actionable under WTO rules, it must be specific to an enterprise or industry, or group thereof. General subsidies available to all are typically not subject to WTO disciplines. The agreement categorizes subsidies into prohibited and actionable subsidies. Prohibited subsidies, as outlined in Article 3, include export subsidies and import substitution subsidies. These are considered particularly harmful to international trade and are subject to expedited dispute settlement procedures. Actionable subsidies, defined in Article 5, are those that cause adverse effects to the interests of other members. These adverse effects can manifest as injury to another member's domestic industry, nullification or impairment of benefits accruing to other members under GATT 1994, or serious prejudice to the interests of another member. When a country believes it is being harmed by subsidized imports, it may impose countervailing measures. These are special duties levied on imported products to offset the impact of subsidies, as permitted under GATT Article VI:3. The imposition of such measures typically follows a WTO panel decision, as stipulated in Article 4.7 of the SCM Agreement. Trade and Politics The intersection of trade and politics significantly impacts domestic production in emerging economies. Policymakers in these countries often face the challenging task of balancing trade liberalization with the protection of local industries. This balancing act involves navigating complex economic, social, and political considerations, often under pressure from both domestic constituencies and international trade partners. xercise (Country A) Country A is an emerging economy. It has just started to open up its economy to more expansive trade and labour integration with countries outside of its region. The country’s main economic activities are fishing and canola oil production. Country A is well known for its fish “flutea”, which is found in large quantities in its seas and rivers. Residents of country A prefer imported fish to their own locally caught stock. It is also cheaper, pre-scaled and easy to prepare. This has led to a large increase in imports of fish from other countries, especially from country D. Since 2015, several skilled workers have been leaving the country, taking advantage of foreign worker schemes made available between Country A’s government and governments in Country X and Y. In addition, professionals have been emigrating to these countries (among others) at increasing rates. This is impacting Country A’s innovation and human welfare levels. Emerging economy, main ressource is fish, competition is imported fish from country D, brain drain  1. Identify two challenges that Country A is experiencing. Country A is experiencing brain drain and the lack of infrastructure as well as competition from country D. 2. Would a subsidy help Country A? If so, under what conditions? a subsidy would benefit country a as it would lower market cost and allow them to create infrastructure to prepare the fish it would also promote local consumption and allow the market to increase worker salaries. however a subsidy is not always beneficial I can make Market stagnate over specialization 3. The remittances from country A’s diaspora community have been very low. Should country A end its foreign worker program with countries X and Y? yes as there is a loss of skilled workers and a little Financial exchanges from skill workers in country X and Y. there should be Financial incentives for workers to return to their home country. 4. Tulipan is a small coastal community in country A. The decline in demand for “flutea” (the fish) makes it difficult for fishers to earn a living from their trade. Can country A end fish importation on this basis? Explain. it is possible however protectionist policies hinder trade and Commercial exchanges between a and countries X and Y. —- The impact of globalization on EEs - globalisation and EEs The Evolution of Global Trade and the World Trade Organization The World Trade Organization (WTO) came into existence in 1995, marking a significant milestone in the formalization of global trade relations. However, it is important to note that globalization as a phenomenon predates the WTO by centuries. The inception of free trade agreements (FTAs) has played a pivotal role in reshaping the landscape of international commerce, allowing emerging economies to become significant actors in global trade. Trade Integration and Emerging Economies The establishment of multilateral trading systems has facilitated trade integration on a global scale. This integration has been particularly transformative for emerging economies, often referred to as "the South," enabling them to participate more fully in economic flows traditionally dominated by developed nations or "the North". Foreign Direct Investment and Technology Transfer One of the key mechanisms through which emerging economies benefit from this integration is foreign direct investment (FDI). FDI not only brings capital into these countries but also facilitates the transfer of technology. This influx of investment and knowledge allows emerging economies to develop their industries and infrastructure, while also promoting the movement of goods and people across borders. Skills Development and Market Diversification The transfer of technology associated with increased global trade integration has led to significant skills development in emerging economies. This, in turn, has enabled these nations to diversify their market economies. They can now develop their commerce and trade capabilities, focusing on producing high-quality, specialized goods and services. A prime example of this is the implementation of advanced technologies like Wi-Fi in these countries. Free Trade Agreements and Their Implications Free Trade Agreements (FTAs) are bilateral or multilateral agreements that reduce or eliminate tariffs and other trade barriers between participating countries. While FTAs can bring numerous benefits, they can also pose challenges, particularly for emerging economies. Internalization of Trade Rules and Norms FTAs often require participating countries to internalize certain trade rules and norms. This process can be complex and potentially detrimental if the imposed norms are too stringent or inappropriate for the emerging economy's current stage of development. (see example of country A B C -> A being a developed economy and B and C being emerging ones; what if A wanted a FTA with B and imposed rules? What is BCD started a tri- FTA ? ) Equitable Treatment and Development Strategies Despite potential challenges, the implementation of trade rules in emerging economies can also bring benefits. It can guarantee more equitable treatment in international trade, providing these countries with an opportunity to compete on a more level playing field with developed economies. This, in turn, can lead to changes in development strategies and government policies. Preferential Trade Agreements (PTAs) PTAs allow member nations to accord preferential treatment to another country's market. These agreements typically do not cover all goods and services but focus on specific areas. PTAs are characterized by little to no reciprocity and are often time-limited, lasting only as long as the country providing preferential treatment chooses to maintain the discriminatory policy. Regional Trade Agreements (RTAs) In contrast to PTAs, RTAs require both (or all) participating countries to open their markets, and reciprocity is a key feature. These agreements tend to be more comprehensive and long- lasting than PTAs. CHART : Impact of globalization; Case Study: Indonesia's Nickel Industry The case of Indonesia's nickel industry provides a compelling example of the complex interplay between globalization, national economic policies, and environmental concerns. Law No. 4 of 2009 and Domestic Priority Indonesia implemented Law No. 4 of 2009, which includes an export ban on raw nickel. This law, particularly Articles 1, 2, and 5, allocates domestic priority to nickel production. The aim is to encourage the processing of raw materials within Indonesia before export, thereby adding value to the country's natural resources. t as represented on the Chinese Southern post videoThis policy has led to a "nickel rush," particularly in the context of electric vehicle battery production, a market worth approximately $30 billion. While this has brought economic benefits, it has also resulted in significant environmental damage, including pollution from mining activities, deforestation, and the displacement of local communities. in the DW video on the Indonesia mining industry, we see that Fishers or the fishing industry and more particularly the badger people are impacted by pollution as they have Kohl's in their homes and are subject to poverty. there is an industrial park created by Chinese investors to produce steel and nickel for later use and electronic vehicle batteries. Australia is also a key country in this industry however there are initiatives to plant trees as to prevent deforestation. the permits are considered compliance so there are no recourse for the locals.Job position is one of the pluses of the mining industry. Indonesia plans to subsidize electronic vehicles and have 20 million electronic vehicle circulating by 2050. it aims to become a global provider of electronic Vehicles however there is very little domestic benefit to locals. International Trade Disputes Indonesia's nickel policies have led to international trade disputes. The European Union has filed a complaint with the WTO, in front of the dispute settlement body, arguing that Indonesia's export ban and subsidies contradict international trade rules. This dispute highlights the tension between national economic policies and global trade regulations.An appeal was heard. so article 3.2 of the CSM says no subsidies for the use of domestic Goods over imported goods. article x 1.1 says no prohibitions other than tariffs or duties and article X says no laws restricting International Trade policy. Globalization and Its Consequences The Indonesia case illustrates two key elements of globalization and their consequences: Supply Chain Disruptions: Indonesia's policies have caused supply issues for industries reliant on raw nickel, potentially leading to struggles in manufacturing sectors of other countries. Shifting Dependencies: These policies may lead to increased dependence on other producers, such as China, which could have geopolitical implications, especially for regions like the EU. CLASS 5 : Intellectual property rights and emerging economies  CLASS 5 : Intellectual property rights and emerging economies Exam next week 9:30 to 11:30 Content : def of EE, FTA, developed vs developing economy, differences between types of economy, etc, SCM agreement, anti-dumping, subsidies use by EEs, 30 multiple choice questions - closed book except for TRIPS and SCM - 1 correct answer For presentation : instructions posted on Studium- topic per week - same grading scale than WLS, content has to be linked to law ( ex : copyright law in a EE and how it allows the country to develop + link it to TRIPS agreement) Midterm Exam Details The exam will take place next week from 9:30 AM to 11:30 AM - 30 multiple choice questions - closed book except for TRIPS and SCM agreements, each question has one correct answer The exam will focus on the following topics: Definition of Emerging Economies (EEs) Free Trade Agreements (FTAs) Developed vs. Developing economies Differences between types of economies SCM (Subsidies and Countervailing Measures) Agreement Anti-dumping measures Use of subsidies by Emerging Economies Presentation Guidelines Detailed instructions for the presentation have been posted on Studium. Each week covers a specific topic.  The presentation will be graded using the same scale as the WLS (Writing and Learning Services). - The content must be linked to law - Example: Discuss copyright law in an Emerging Economy and how it contributes to the country's development - Connect the topic to the TRIPS (Trade-Related Aspects of Intellectual Property Rights) agreement Does IP promote economic development in Emerging Economies? Definition and Parameters of IP Intellectual Property (IP) refers to creations of the mind, resulting from one's intellectual ability or activity. There are various types of IP, including: Copyright Trademark Industrial designs Patents Geographical indications Trade secrets Genetic resources Cultural expressions Integrated circuits Data IP Trademark - Exclusive use of a sign or logo to distinguish from other enterprises Industrial Designs - Ornamental designs or original appearance of a product - Appealing features that don't serve a functional purpose Patent - Exclusive right granted for an invention - Often involves an inventive process (common in pharmaceutical and cosmetic industries) Geographical Indications (GI) - A mark identifying a product whose quality, reputation, or characteristics are linked to its geographic origin - Unique in having no temporal limitation - Example: EU-Canada agreement on mutual protection of geographical products - Note: In the US, GIs are protected under minimal standards (Lanham Act) Trade Secret - Rights on confidential information that can be sold or licensed - Unlike patents, not registered and only protected under contracts or agreements - Example: Attempts to disclose trade secrets like Coca-Cola or Pepsi recipes Monkey Selfie Case: Photographer David Slater's camera was used by a monkey to take a picture, leading to a debate on animal IP rights (PETA claimed the monkey had IPR), under the Berne convention, only a natural person can have IPR rights. International Agreements concerning intellectual property : TRIPS (Trade-Related Aspects of Intellectual Property Rights) : establishes a common framework amongst member states and guaranteeing minimum standards of copyright protection Berne Convention of 1886  -Stipulates that only a natural person can claim copyright - Requires member states to maintain a certain level of copyright protection - Mandates protection of works by citizens of other member states The WTO agreement on trade related aspects of IPR (Annex 1C) The TRIPS agreement provides a common framework for minimal IPR protection provisions in all member states. This implies that citizens of member states have a right to protection of their works in other member states. See article 7 of the TRIPS agreement: Objectives The protection and enforcement of intellectual property rights should contribute to the promotion of technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technological knowledge and in a manner conducive to social and economic welfare, and to a balance of rights and obligations Intellectual property (IP) laws are intended to promote economic growth, but this process can be lengthy. The relationship between IP protection and economic development in emerging economies is complex. The agreement involves reciprocity between all member states. Economic development, intellectual property and developing countries : Relationships and Limits Emerging economies and the promise of economic development through intellectual property have gained significant attention in recent years. The Global Innovation Index (GII) provides valuable insights into this relationship by measuring various indicators of innovation and economic progress. Global Innovation Index The GII uses several indicators to assess innovation and economic development, including: - IPR filings - Scientific publications - Research and development expenditure - High-tech exports Note : copyright protection does not require registration in most countries, which can be particularly relevant for emerging economies where access to copyright offices may be limited. Note relating on evolution : Moore's Law, named after Intel co-founder Gordon Moore, predicts that the number of transistors on a microchip doubles about every two years.. This law has been a driving force behind technological advancements in emerging economies. Domestic factors play a crucial role in economic development, with scientific clusters being a prime example. These are specific geographic sites within countries that produce significant innovation. According to the GII 2023, the top 5 Science and Technology clusters globally are: 1. Tokyo-Yokohama (Japan) 2. Shenzhen-Hong Kong-Guangzhou (China) 3. Seoul (Republic of Korea) 4. Beijing (China) 5. San Jose-San Francisco (USA) While stronger intellectual property rights (IPR) are often associated with economic development, the relationship is not always straightforward. Peter Yu's research suggests that stronger IPR provisions in a country do not necessarily guarantee economic development.. Development is influenced by various factors beyond IPR, including bilateral agreements, investments, and free trade agreements. The Berne Convention, in Article 7, provides a minimum copyright protection period of 50 years after the author's death. However, some emerging economies are implementing stricter standards, known as TRIPS+, which can extend protection up to 100 years in some cases. See this example of copyright protection standards potentially creating challenges for emerging economies. Country B's economy is primarily driven by its offshore banking industry. The country is a signatory to the TRIPS agreement and a member of the World Intellectual Property Organization (WIPO). Despite these affiliations, movie piracy remains widespread in Country B. The United States is pushing for Country B to enact legislation that would extend copyright protection to 75 years as part of a Free Trade Agreement (FTA). This proposal comes in the context of varying copyright terms globally: - Country X already has a 95-year copyright protection term. - Canada, a significant consumer of Country B's music, only offers 70 years of protection. 1. The United States would likely benefit from increased protection terms. 2. Country B's potential benefits depend on the consumption patterns of its local content: - If consumed primarily domestically, longer protection could be advantageous. - However, if a significant portion of Country B's content (e.g., music) is consumed in jurisdictions with shorter protection periods (like Canada), the extended term may not yield substantial benefits. Furthermore, the discrepancy between Country B's proposed 75-year term and Canada's 70-year term could affect royalty collections from collective societies, potentially limiting the financial advantages for Country B's creators. PETER YU’s ( webinar on nov 19th)  PETER YU – Intellectual Property paradoxes in Pandemic times [To be sure, many factors have contributed to the economic and technological developments in these countries. IP reform is only one of them. Nevertheless, this type of reform has provided substantial macro-level benefits. Since the adoption of the TRIPS Agreement, developing countries have practiced what commentators have referred to as ‘selective adaptation’. While they have embraced IP standards that are consistent with their development models, they have also rejected those standards that sit uneasily with local needs, interests, conditions and priorities. In doing so, they have managed to slowly catch up with their more developed counterparts.] CAPACITY TO ENACT AND IMPLEMENT IP FRAMEWORK EFFECTIVELY: can negate positive relationships in IPR The TRIPS Agreement allowed developing countries extra time to implement IP laws: General transition period of 5 years until January 1, 2000 for developing countries. Additional 5 years (until 2005) for developing countries that did not previously provide product patent protection in areas like pharmaceuticals. Least developed countries initially had until 2006 to implement TRIPS, later extended to 2013 and then 2021 for pharmaceutical patents. Myanmar is a recent example, having enacted its first IP laws in 2019 after decades of delay. ➔ WIPO has worked on developing international legal instruments to protect genetic resources, traditional knowledge and folklore. ➔ Many developing countries have advocated for TRIPS to be amended to require disclosure of origin for genetic resources in patent applications.  ➔ The turmeric patent case in the 1990s highlighted issues with patenting traditional knowledge. The US patent on turmeric's wound healing properties was ultimately revoked. ➔ For products like sea moss, the TRIPS Agreement requires disclosure of origin, making it difficult to patent such naturally-occurring substances. ➔ Article 27.3(b) of TRIPS allows countries to exclude plants and animals from patentability. It requires protection for plant varieties either through patents or an effective sui generis system. This provides flexibility in protecting agricultural innovations. HOW DOES THIS FOSTER ECONOMIC DEVELOPMENT? - Robust IP laws - Country's stage of development - Economic goals of emerging economies - copyright utility in specific sectors: - e.g., offshore banking infrastructure - Blockchain integrations INTEREST IN THE USE OF THE LAW Identifying sectors that could benefit from intellectual property (IP) and allocating resources to these sectors (for example, traditional weaving) is important. Consider the example of Country A and users from Country B – what form of Intellectual Property Rights (IPR) would be most appropriate? A society can progress through IP and should aim to protect the rights of singers, artists, and other creators. What role does the IP office play? It serves as a licensing body, promoting awareness of IP benefits and the law itself, while also handling filings. However, the regulatory aspect is more often handled by courts, police, and competition offices. Complaints can be filed before these entities. In emerging economies, there is often difficulty for IP generators to take action against copyright infringement due to the lack of an effective regulatory body. For instance, consider the example of Blue Mountain coffee with Geographical Indication (GI) located in Jamaica. The government's inaction resulted in farmers suffering losses and damages due to IPR infringement. CLASS EXERCISE Country “A” is an emerging economy. The country has an interest in enacting a geographical indication (GI) law as it is believed (by the government) that it will promote economic development. No suitable products have been identified as GI registrable. Country B is a strong supporter of the GI and economic development narrative. Country B exports several products (foods and agricultural products) to Country A and wants these products to have a high standard of protection in Country A. Country A and Country B will likely enter into bilateral talks towards the signing of a trade agreement. Country A however, wants its GI law to be similar to the United States’ laws on GIs. These rights are protected through trademark law. This provides limited protection for GIs (including the risk of cancellation of the GI designation, and a coverage that only extends to unfair competition matters). 1. Using the EU-Chile interim trade agreement as a guide (the GI section) and the TRIPS agreement (hint not the Articles of the Agreement), identify four potential benefits of enacting GI law in Country A. - Market access - - opportunities of GI products being created and commercialized - Diversification of IP/ GI designations 2. Identify two factors that may hinder economic development through GIs in Country - Country A does not have a product that is GI registrable therefore no economic benefit derived from local products. - Country B wants its products to have a higher standard of protection (inadequacy of country A’s GI framework, could lead to tensions and less trade opportunities) - Monopoly of producers that can control the marketing and specification of products that compromise the benefits. ( corruption and the effects of economic development) 3. Can country A enact strong laws on GIs and still use the United States’ approach to GI protection? Country A can’t apply the de minima standard likewise the US, it should progressively apply a stricter standard of protection as the US provisions are too weak to match up to the high standard of protection that Country B requests. ( the minimum floor standard imposed by the TRIPS, in Eu, Caribbean, African, Canadian FTAs, standards can be higher and products presenting similarities to original GI product can be liable for infringement) -> exclusivity based on name of product linked to geographical origin.