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TWN
Info Service on Intellectual Property Issues (Jan23/02)
Trade: Swiss Minister opposes TRIPS Decision on diagnostics
& therapeutics New Delhi, 24 Jan (D. Ravi Kanth) — Attempts to intensify the discussions for extending the World Trade Organization’s 12th ministerial conference (MC12) Ministerial Decision on the TRIPS Agreement to diagnostics and therapeutics were apparently opposed by Switzerland at the informal trade ministerial meeting held on the margins of the annual Davos meetings on 20 January. At the informal ministerial meeting attended by more than two dozen countries on 20 January, Switzerland appears to have unmistakably opposed any move to accelerate the discussions to extend the TRIPS decision reached on 17 June 2022 to diagnostics and therapeutics, said participants, who preferred not to be identified. As reported in SUNS #9724 dated 17 January 2023, several developing countries raised the issue at the informal ministerial meeting in Davos. Days after a small group of developed countries blocked the extension of the TRIPS decision to diagnostics and therapeutics at the General Council meeting last month, the co-sponsors of the original TRIPS waiver proposal (IP/C/W/669/Rev.1) circulated a paper on 22 December. In a restricted document (Job/GC/332), seen by the SUNS, the co-sponsors argued that “the pandemic has, from its outset, raised issues at the crossroads of public health, trade, intellectual property (IP) policy, and the framework for and management of innovation and access, including issues related to technology transfer.” The co-sponsors argued that “a more comprehensive waiver decision as envisaged in the original TRIPS waiver proposal as entailed in IP/C/W/669 and IP/C/W/669/Rev.1 (“original TRIPS waiver proposal”) co-sponsored by 65 WTO Members would support the efforts to ensure timely, equitable and universal access to safe, affordable and effective therapeutics and diagnostics, ramping up of production and expanding supply options.” They said that “the MC12 Decision on the TRIPS Agreement approved on 17 June 2022 in document WT/MIN(22)/30 – WT/L/1141 is far removed from the comprehensive TRIPS waiver proposal which envisaged a comprehensive policy tool to help make COVID-19 health products available and affordable for everyone.” According to the co-sponsors, “ensuring equitable, affordable, timely and universal access for all countries to COVID-19 medical tools and technologies calls upon states and other relevant stakeholders to take appropriate measures to guarantee fair, transparent, equitable, efficient, universal and timely access and distribution of safe, quality, efficacious, effective, accessible and affordable COVID-19 vaccines, therapeutics and diagnostics.” Significantly, in the face of a strong demand from several developing countries for WTO Members to deliver on paragraph 8 of the MC12 TRIPS Decision soon, Switzerland’s trade minister Guy Parmelin apparently said “NO” to extending the Decision to diagnostics and therapeutics, participants said. DIFFERENCES OVER PRIORITIES More importantly, trade ministers who took part in the half-day meeting highlighted sharply differing priorities for the WTO’s 13th ministerial conference (MC13), said participants, who asked not to be quoted. The trade ministers from several developing countries apparently expressed concern over Switzerland apparently ruling out any agreement to extend the MC12 TRIPS Decision on vaccines to diagnostics and therapeutics, participants told SUNS. The US Trade Representative (USTR) Ambassador Katherine Tai apparently issued confusing messages on issues such as the moratorium on customs duties on electronic transmissions, WTO reforms, and the restoration of the two-stage dispute settlement system as demanded by a large number of participants at the meeting. The US, according to two participants, seems to have continued with its opposition to the restoration of the Appellate Body. The US also apparently leaned towards the continuation of the moratorium on customs duties on electronic transmissions, said participants, who asked not to be quoted. Trade ministers and senior officials from Australia, Brazil, Chile, Cameroon, Costa Rica, the European Union, China, Jamaica on behalf of the ACP (African, Caribbean, and Pacific) group, Japan, South Korea, South Africa, Singapore, India, Indonesia and the United Arab Emirates among others took part in the meeting. In her remarks at the meeting, the WTO Director-General Ms Ngozi Okonjo-Iweala outlined several topics for further work. The topics include “the follow-up negotiations provided for in the Fisheries Subsidies Agreement; a decision on extending the TRIPS waiver compromise beyond COVID-19 vaccines to cover therapeutics and diagnostics; food security and agriculture reform; WTO and dispute settlement reform; development, in particular topics of interest for least developed countries; and e-commerce and a forward-looking agenda covering digital trade and climate change.” CHINA PRESSES FOR APPELLATE BODY RESTORATION In contrast to the US position on the restoration of the two-stage dispute settlement system, China said “restoring the normal operation of the DSB is a must-have for any MC13 package.” China called for entering into “text negotiations instead of continuing general debates.” Beijing emphasized that “the core features of the DSB mechanism, namely, independent, impartial, binding, two-tier, etc, must be maintained.” China said it has started the ratification process for the Agreement on Fisheries Subsidies, informing ministers that it will try to complete it within the year. INDONESIA ISSUES A STRONG MESSAGE In a strong statement at the meeting, Indonesia said that “members should give their best efforts to follow up the result of MC12 and work towards identifying potential deliverables for the upcoming MC13 by focusing on several key areas.” Indonesia said that in its view, the key areas for further work include: “(i) achieving a permanent solution for the longstanding agricultural negotiation on public stockholding for food security purposes; (ii) reinvigoration of work under the Work Programme on e-commerce; (iii) the resolution of the crisis surrounding the Appellate Body with a view to having a fully and well- functioning dispute settlement system; (iv) deciding once and for all the expansion of the TRIPS Decision to therapeutics and diagnostics.” Indonesia also stands ready to continue the negotiations on fisheries subsidies. Indonesia argued that the unresolved mandated issues such as the permanent solution for public stockholding programs for food security and the special safeguard mechanism in the Doha work program must be resolved, “rather than sweeping them under the rug and moving into new shiny items to play with.” In the face of multiple crises, Indonesia said that trade must address “sustainable growth, development, and resilience in the face of multiple crises.” More importantly, the WTO must do its best to “ensure that whatever outcomes we achieve will level the playing field and benefit all members equally, instead of maintaining the status quo.” On the current food crisis, China drew reference to “trade distortion caused by excessive agriculture subsidies of some members.” “Those subsidies put small subsistence farmers in other members at loss, reducing their willingness and ability to produce.” China said that the “reduction of AMS (aggregate measurement of support) will help level the playing field and motivate more members to increase production.” A group of countries – the European Union, New Zealand, and Kenya among others – held a meeting on environmental sustainability and trade outside the informal meeting. However, there were few takers for the EU’s initiative. At the end of the meeting, the Swiss trade minister issued the following remarks: * Ministers expressed their appreciation for the successful outcomes of the 12th Ministerial Conference (MC12) of June last year and underlined the significance of WTO delivering substantive, multilaterally-negotiated outcomes. * Building on the achievements at MC12, Ministers stressed their commitment to a successful outcome of the 13th Ministerial Conference (MC13). They expressed their gratefulness to the United Arab Emirates for hosting the next WTO Ministerial Conference in February 2024 in Abu Dhabi and to Cameroon for hosting the 14th Ministerial Conference (MC14). * Ministers expressed their resolve to preserve the credibility of the rules-based multilateral trading system and to undertake a meaningful reform of the WTO to improve all its functions. Many Ministers underlined the importance of considering development needs along the entire reform process. Issues related to LDC graduation were also stressed. * Ministers recalled the commitment at MC12 to conduct discussions with a view to having a fully functioning dispute settlement system accessible to all Members by 2024. Most participants highlighted this objective as a priority. * Ministers welcomed the adoption of the Agreement on Fisheries Subsidies at MC12 and called on Members to ratify the Agreement without delay so that it can enter into force soon. Numerous Ministers also stressed the importance of completing the remaining negotiations on fisheries subsidies by the next ministerial meeting. * Referring to concerns about the considerable social and economic impact of the COVID-19 pandemic, a number of Ministers emphasised the need to extend the TRIPS Decision adopted at MC12 to cover the production and supply of COVID-19 diagnostics and therapeutics. * Ministers stressed the need for effective negotiations on agricultural trade policy reform. Many participants highlighted food security as well as other concerns such as subsidies, export restrictions, public stockholding and environmental issues. * Several Ministers also called for an extension of the moratorium on customs duties on electronic transmissions. The reinvigoration of the work program was also underlined in order to inform decision-making on this matter. * While multilateral outcomes remain the preferred option, many considered that it is important to continue to apply new approaches that allow Members to pursue, in an open and inclusive manner, initiatives of interest to them. * In this context, many Ministers welcomed the progress in the Joint Statement Initiative negotiations such as on E-commerce and Investment Facilitation. Many Ministers also expressed their commitment to advance the work in other joint statement initiatives. * The importance of environmental sustainability and trade and climate were also highlighted by several participants. * Ministers showed their readiness to remain involved in the preparations for MC13 to further engage for meaningful results. +
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