Rich nations refuse to waive IP rights on Covid-19 vaccines at WTO

Mumbai/New Delhi: The World Trade Organization (WTO) members failed to reach a consensus on the “landmark” proposal submitted by India and South Africa in October for a temporary waiver of intellectual property on Covid-19 drugs and vaccines.
At the formal meeting of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Council on Thursday, members agreed to keep the item on the agenda of future TRIPS Council meetings to allow for further discussions on the submission, sources close to the deliberations said.
The proposal which earlier had the support of nearly 100 countries, barring multiple wealthy nations, has been sought in the wake of challenges of developing nations in accessing crucial Covid-19 medical products, including diagnostics.
Thursday’s meeting was the continuation of long and comprehensive discussions initially held at the formal TRIPS Council meeting on October 15-16, and subsequently at informal meetings on November 20 and December 3.
Members highlighted in those meetings the common goal of providing access to high-quality, safe, effective and affordable vaccines and medicines, exchanged views, sought clarifications and provided information on the waiver request but did not reach consensus, sources added.
India emphasized that this is not a proposal only for the two countries but for the global community at large.
India may have the required manufacturing capacity and national legislations to cater to its needs, but in a global pandemic, where every country is equally affected, we need a global solution, the Indian delegate said.
India challenged the assertion that the system provides sufficient tools to ensure swift and equitable access to vaccines and medical products for all, questioning for example the functionality and effectiveness of TRIPS flexibilities as contemplated in Article 31 on compulsory licences, as these licences must be issued on a case by case, country by country basis, and according to national patent law procedures and practices.
It is an impractical option, India said, taking into consideration the need for regional and international collaboration to scale up the supply and the need to source materials from various countries, and also the need for economies of scale to make such manufacturing viable.
Further, the chair of the TRIPS Council, ambassador Xolelwa Mlumbi-Peter of South Africa, said there was emerging agreement that the TRIPS Council should provide a communication to the General Council that would be neutral and factual, and reflect the state of play of discussions and the absence of consensus on the waiver proposal in the TRIPS Council at this time.
As per WTO rules, waivers concerning WTO agreements must be submitted initially to the relevant Council which has 90 days to submit a report to the Ministerial Conference or, in its absence as it is the case this year, to the General Council.
Given that this proposal was initially submitted on October 2, the 90-day time-period expires on December 31, and the next meeting of the General Council will be the last opportunity for members to take a formal decision.