World trade organization (WTO) and Development of small and Medium entreprises (SMEs)

Abstract

This article analyses a sample af WTO agreements to see their impact on small and medium enterprises (SME), particularly of the developing countries. Many of the rules of the World Trade Organization on trade, subsidies, intellectual property, investment, and services protect the interests of rich countries and their powerful multinationals. Rules, regulations and policies used by developing countries for nurturing local small and medium industries and services are the targets of attacks of most of these agreements. Export subsidies, investment subsidies to small enterprises in backward areas, tax holidays, sales tax exemptions, concessions to weak and sick units and measures to rehabilitate sick enterprises and industry wise incentives are prohibited or actionable subsidies under SCM. The policies of import substitution and local content requirements have been banned under TRIMs. The intellectual property regime (TRIPsj is a subtle conspiracy against SMEs and denies the benefit of knowledge and innovation to developing societies. CATS denies any incentives, subsidies or privileges to small local service providers in the private sector. How the SMEs have been affected by the WTO subsidy regime is indicated by the widespread protest being raised by SME industry associations in the European Union countries.