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.
