|
||
|
TWN
Info Service on Sustainable Agriculture Tbilisi, 18 Oct (D. Ravi Kanth) — The chair of the World Trade Organization’s General Council (GC) has issued a restricted “state of play” report for the consideration of the capital-based Senior Officials Meeting (SOM) that suggests that an outcome on paragraph eight of the MC12 Ministerial Decision on the TRIPS Agreement seems unlikely to materialize at the upcoming WTO’s 13th ministerial conference (MC13), said people familiar with the development. The SOM is scheduled to take place in Geneva on 23-24 October to prepare a blueprint of possible deliverables for MC13, to be held in Abu Dhabi in February 2024. Ahead of the SOM, the GC chair, Ambassador Athaliah Lesiba Molokomme of Botswana, issued a restricted “state of play” report (Job/GC/357), seen by the SUNS, that suggests that there may not be any outcome on paragraph eight of the MC12 Ministerial Decision on the TRIPS Agreement, which states, “No later than six months from the date of this Decision, Members will decide on its extension to cover the production and supply of COVID-19 diagnostics and therapeutics.” Incidentally, the issue has not even been placed on the SOM agenda, even though almost a full day is being spent on the non-mandated issues such as trade and industrial policy and trade and environmental sustainability that are being pursued at the insistence of the European Union, and which appears to be supported by the WTO Director-General, said people, who asked not to be identified. For more than 100 developing countries, the mandated issue of paragraph eight of the MC12 Ministerial Decision on the TRIPS Agreement (WT/MIN(22)/30), is one of the core issues along with the permanent solution for public stockholding (PSH) programs for food security in developing countries. In fact, South Africa has called for a decision on paragraph eight at MC13. However, a few countries like Switzerland and the United Kingdom among others continued to adopt obdurate positions by insisting that intellectual property rights (IPRs) are not a barrier for access to COVID-19 diagnostics and therapeutics, even though the proponents seeking a final decision have apparently conclusively established that it is indeed a barrier to the manufacture and distribution of these medical products. In a similar vein, another mandated issue concerning the permanent solution for PSH, which remains unresolved since 2015, is also not included in the agriculture pillar for the SOM. Both issues seem to be eclipsed in the SOM agenda, said people, who preferred not to be quoted. GC CHAIR’S REPORT Yet, the GC chair’s report states with regards to the MC12 TRIPS Decision extension, “the matter was taken up in the lead up to the 17 December 2022 deadline at the General Council in July, October and December 2022 and at the TRIPS Council in July, October and December 2022”. The report says, “At the regular session of the General Council in December 2022, WTO Members agreed to extend the 17 December deadline with the understanding that (i) this issue – of the duration of the deadline – will remain on the General Council agenda; (ii) that Members will provide an update on where they stand with their internal processes; and (iii) that substantive discussions will continue in the TRIPS Council.” “In this regard,” the GC chair said, “substantive discussions continued at the TRIPS Council. The TRIPS Council Chairperson, Ambassador Pimchanok Pitfield (Thailand), has since held consultations with individual delegations and group coordinators on this matter – and these discussions continue in the TRIPS Council.” With repeated efforts by a small group of countries such as Switzerland and the United Kingdom, as well as the United States, progress in these negotiations is almost stalled. The GC chair said, “An agreement is yet to be reached at the General Council on the duration of the deadline.” According to the GC chair’s report, “In the substantive discussions in the Council for TRIPS, there is currently no consensus on the question of whether to extend the MC12 TRIPS Decision to COVID-19 diagnostics and therapeutics.” The GC chair said, “Members remain divided inter alia on the fundamental question of whether IP is a barrier to or an enabler of the manufacture and distribution of pharmaceutical products related to COVID-19.” The report says, “A further disagreement concerns the question (of) whether the concept of COVID-19 diagnostics and therapeutics would need to be further defined before an extension could be considered, or whether the Decision should be extended to such products mutatis mutandis without re-opening the text.” The item was also taken up at an informal meeting on 9 October and will be taken up at the next formal meeting of the TRIPS Council on 30-31 October. “Substantive engagement by Members is expected to increase once all Members have completed their internal processes. In this regard, a report by the US International Trade Commission [ITC] on the matter is expected to be published after mid-October 2023.” Meanwhile, according to a report published in Washington Trade Daily on 18 October, the US ITC has arrived at the following findings in its report released on 17 October: I. The universe of products that are COVID-19 diagnostics and therapeutics is vast. Possible approaches to narrowing the universe of products to a smaller scope of relevant COVID-19 diagnostics and therapeutics could be to look at whether the product is covered by patents, whether the product is directed to COVID-19, and whether the product has received regulatory approval or authorization. II. The two fields of diagnostics and therapeutics are composed of different producers, inputs, and know-how. In general, COVID-19 diagnostics can be brought to market faster than COVID-19 therapeutics. Research and development of COVID-19 diagnostics and therapeutics primarily occurred in HICs, but manufacturing of diagnostics and therapeutics occurred in countries of all income levels except for LICs. III. Voluntary licenses, including licenses coordinated by the Medicines Patent Pool, have been an important mechanism to offer COVID-19 therapeutics for sale at reduced prices in LICs, LMICs, and some UMICs; however, a number of UMICs have been excluded from coverage under voluntary licenses. Compulsory licenses have been used by a small number of countries to access intellectual property associated with certain COVID-19 therapeutics. IV. The disparity among countries of different income groups in terms of access to and availability of COVID-19 diagnostics and therapeutics is wide, with key factors affecting demand and availability including access to intellectual property, prices and affordability, regulatory approvals, healthcare infrastructure and the healthcare priorities of governments. The importance of each of these and other factors impacting availability and demand varies greatly among countries. The report also catalogues, among other things, barriers to accessing COVID-19 diagnostics and therapeutics and actions taken by WTO members to use or attempt to use compulsory licenses for pharmaceuticals and any alternatives, including voluntary licenses and licensing coordinated by the Medicines Patent Pool. PSH Similarly, continued opposition from the US, the EU, and a few South American countries seems to have held up any progress in the Doha agriculture negotiating body on the permanent solution for PSH and the special safeguard mechanism (SSM) for developing countries. Despite best efforts by the chair of the Doha agriculture negotiations, Ambassador Alparsan Acarsoy from Turkiye, the major industrialized and some developing countries like Paraguay seem to be opposed to any outcome in agriculture, particularly on the PSH issue, at MC13, said several developing countries. The chair is expected to host a meeting with members on 19 and 20 October to discuss the report/messages to be shared at the SOM. In the “state of play” report, the GC chair provided a factual account of the meetings held since the Costa Rican ambassador, Ms Gloria Abraham Peralta, held the position of chair, and who allegedly caused havoc in the negotiations, as well as on the substance of the discussions held under the leadership of Ambassador Acarsoy, said people, who asked not to be quoted. In the sub-section on the “substance” of the discussions, the GC chair said, “While some progress has been made in recent months under the leadership of the CoA SS Chairperson, views continue to differ between Members on possible landing zones on the various topics under negotiations and, more globally, on the shape of a possible outcome on agriculture at MC13.” On the crucial issue of domestic support, the GC chair said: “For the vast majority of Members, addressing trade-distorting domestic support is a priority, but views remain divergent on how to achieve this objective as well as on the sequencing of reforms.” It is common knowledge that both the US and the EU remain sharply opposed to addressing the issue of domestic support, in which they have either exceeded their current commitments or are close to their Uruguay Round scheduled limits, said negotiators who preferred not to be quoted. “Issues such as how to implement a proportionality principle in the reductions to be made by Members, how to incorporate special and differential treatment in the negotiations, leveling the playing field, the possible sequencing in the reduction of various forms of trade-distorting domestic support, or the approach to be retained for some categories of support such as Article 6.2 or blue box remain disputed,” the GC chair said in her report. Further, according to the GC chair’s report, “Whether the approach followed on domestic support can also address PSH, and how to address the green box also remain controversial.” The US apparently currently provides more than USD 150 billion as “green box” support, which according to several studies, has been found to be trade-distorting. In her report, the GC chair pointed out that, “Another key area of the negotiations is public stockholding for food security purposes (PSH). A large group of developing country Members consider that finding a permanent solution to this issue is essential to achieving food and rural livelihood security and are requesting the adoption of a permanent solution at MC13 considering the missed deadlines and Ministerial mandates.” Without naming a large number of developing countries, including the G33 group of developing countries led by Indonesia, the African Group, and the ACP (African, Caribbean, and Pacific) group, India, and South Africa among others, the GC chair said: “These Members also consider that the rules used to calculate the level of support provided under these programs should be updated to take account of the evolution of prices from their 1986-88 levels.” The GC chair said that “given that food purchases are made at prices set by governments under PSH programs, other Members are concerned that these programs could potentially result in trade distortions, particularly if accumulated stocks end up being released onto world markets. These members therefore consider that parallel progress is needed in the domestic support negotiations.” For the US and the Cairns Group of farm-exporting countries, market access is an important goal. “Market Access is considered by some Members as an important component for a balanced outcome, while some others considered that it should be addressed sequentially after progress has been achieved on domestic support,” the GC chair said. Even though members nearly concluded a decision on the SSM in 2008, as spelled out in the report issued by then chair of the Doha agriculture negotiations, Ambassador Crawford Falconer of New Zealand, the GC chair’s report states that, “Members’ views remain divergent in the SSM negotiations, principally on how a safeguard mechanism to be negotiated relates to market access reforms.” On export competition, the report said that past discussions have mainly focused on the issue of transparency, in particular, to ensure effective implementation of the December 2015 Nairobi Ministerial Decision on Export Competition. Several Members also stress the importance of an overall balance across the various negotiating topics and pillars. Cotton is a priority area for the four West African countries, Benin, Burkina Faso, Mali, and Chad, and it is being supported by a large group of developing countries. But progress at MC13 on the central issue of trade-distorting domestic support provided by some Members to their cotton producers is imperative. Some Members are of the view that this topic cannot be considered in isolation from the overall negotiations, particularly on domestic support. The cotton development track is also considered by several Members as an important component to support the development of a sustainable and competitive cotton sector in LDCs. The GC chair said, “All Members agree on the need to achieve an outcome that would help to enhance food security, but views differ on the best way to address this issue.” “Members are considering both short- and long-term responses to enhance food security, including reforming the current agricultural trade rules,” the GC chair said. She added that, “Views diverge between those who wish to adopt a holistic approach to food security and those who prefer to focus currently on specific pillars or tools. Levelling the playing field and the specific needs of LDCs and net food-importing developing countries are also important considerations in these discussions.” The GC chair maintained that “while considerable work has been done since the beginning of the year, more remains to be done to achieve a substantive, meaningful outcome on agriculture by MC13.” She underscored the need to accelerate the negotiations and invited Members to be more proactive and exercise flexibility where necessary to achieve substantive progress. Attempts are apparently underway to “kick the can down the road” on the issues of PSH, SSM, and domestic support at MC13, said trade envoys, who asked not to be quoted. The GC chair also said that while “MC13 will not be the end of the road, it can and should be an important milestone in the negotiating process.” In conclusion, the GC chair said that: “MC13 should deliver on the commitment undertaken at MC12 to take “concrete steps” to facilitate trade and improve the functioning and long-term resilience of global markets for food and agriculture and demonstrate that the WTO is back on track to achieving a fair and market-oriented agricultural trading system, ending hunger, achieving food security and improved nutrition and promoting sustainable agriculture and food systems as reaffirmed by Ministers at MC12.” +
|
||
