TRIPS Agreement was a matter of bitter conflict between developed and developing countries during Uruguay Round Multilateral Negotiations. Although both sides compromised in the end, the concerns on the effects of the Agreement on developing countries are still maintained. On January 1, 2005 Indian parliament approved and passed the new Patents Act designed to make the necessary changes in its legislation to comply with its obligations under TRIPS Agreement. As one of the leading generic drugs exporter, India 's new Patents Act revived the discussion; whether under TRIPS provisions developing countries may reach essential drugs with affordable prices thereafter. In this paper the effects of TRIPS Agreement on developing countries are discussed by analysing pharmaceutical sector as an example.
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