[CTC] Europe Pushes Alternative to U.S.-Backed Covid-19 Vaccine Patent-Waiver Plan

Thu Jun 3 09:40:59 PDT 2021

Vaccine news from Europe and DC below…

Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826

https://www.wsj.com/articles/europe-pushes-alternative-to-u-s-backed-covid-19-vaccine-patent-waiver-plan-11622732952 <https://nam12.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.wsj.com%2Farticles%2Feurope-pushes-alternative-to-u-s-backed-covid-19-vaccine-patent-waiver-plan-11622732952&data=04%7C01%7Cb.baker%40northeastern.edu%7C884fe12e0cc045cf17b708d926a74ad8%7Ca8eec281aaa34daeac9b9a398b9215e7%7C0%7C0%7C637583322261102457%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=b%2Ftq%2F6SZswkuYQW3qQ%2FfrESWdTMhYbCxfG22hDZjcuI%3D&reserved=0>
Europe Pushes Alternative to U.S.-Backed Covid-19 Vaccine Patent-Waiver Plan

By Saeed Shah and Gabriele Steinhauser
June 3, 2021

The European Union is pushing back hard against U.S.-backed calls to temporarily waive intellectual property rights <https://nam12.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.wsj.com%2Farticles%2Fu-s-backs-waiver-of-intellectual-property-protection-for-covid-19-vaccines-11620243518%3Fmod%3Darticle_inline&data=04%7C01%7Cb.baker%40northeastern.edu%7C884fe12e0cc045cf17b708d926a74ad8%7Ca8eec281aaa34daeac9b9a398b9215e7%7C0%7C0%7C637583322261112451%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=lC4JNVL7JaT8MKLgdyLaQ5dHidbh8tQjWw67ig1ZkSs%3D&reserved=0> for Covid-19 vaccines, preparing a rival plan that officials said would better safeguard drug companies’ patents and look for other ways to boost supplies for developing countries.

As the gap between vaccine haves and have nots has widened, Washington and China have endorsed a proposal by developing countries at the World Trade Organization to suspend patent protections for the immunizations <https://nam12.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.wsj.com%2Farticles%2Fu-s-backs-waiver-of-intellectual-property-protection-for-covid-19-vaccines-11620243518%3Fmod%3Darticle_inline&data=04%7C01%7Cb.baker%40northeastern.edu%7C884fe12e0cc045cf17b708d926a74ad8%7Ca8eec281aaa34daeac9b9a398b9215e7%7C0%7C0%7C637583322261112451%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=lC4JNVL7JaT8MKLgdyLaQ5dHidbh8tQjWw67ig1ZkSs%3D&reserved=0>.

Brussels’ alternative plan would lift export restrictions on vaccines and their raw materials, expand manufacturing capacity around the world, and make it easier for countries to use existing rules to override patents in some cases, according to documents reviewed by The Wall Street Journal. 

The EU’s stance makes a quick deal on the waiver proposal less likely, and could sink it altogether, trade experts say.

EU officials said they would present the proposal at the WTO next week, when members are also set to debate the waiver. They argue that removing patents won’t do much to help increase production in the short term and would remove incentives for pharmaceutical companies to do further work, such as updating vaccines for virus mutations. 

“The rules-based global trading system can contribute to ensure a rapid expansion of production and equitable access to Covid-19 vaccines and therapeutics,” says the draft of the EU plan. 

European leaders are already trying to further elements of the plan. French President Emmanuel Macron and Germany’s health minister, Jens Spahn, traveled to South Africa last week to hold talks and offer funding to increase the production of Covid-19 shots on the continent.

South Africa and India are leading more than 60 countries that say IP rights held by pharmaceutical companies are preventing them from producing Covid-19 vaccines locally at a time when they say rich countries have bought up <https://nam12.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.wsj.com%2Farticles%2Fdeveloped-countries-lock-up-covid-19-vaccines-through-2023-11622665655%3Fmod%3Darticle_inline&data=04%7C01%7Cb.baker%40northeastern.edu%7C884fe12e0cc045cf17b708d926a74ad8%7Ca8eec281aaa34daeac9b9a398b9215e7%7C0%7C0%7C637583322261122441%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=cTishTI19uE54ZYqfVaWQFaMSalPtI3xfzcZOE3edCo%3D&reserved=0> much of this year’s supply.

Their current proposal at the WTO includes a three-year waiver of IP for drugs and testing technologies to treat the infected and prevent further spread. The U.S. and China haven’t explicitly endorsed that part of the plan. 

Africa currently imports 99% of the vaccines it needs and has administered less than 2% of the Covid-19 shots given globally. 

The EU proposal has similarities to ideas put forward by leading vaccine makers. Since the Biden administration surprised the industry by backing the waiver in May, companies opposed to it have stepped up their lobbying <https://nam12.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.wsj.com%2Farticles%2Fcovid-19-vaccine-makers-press-countries-to-oppose-patent-waiver-11622021402%3Fmod%3Darticle_inline&data=04%7C01%7Cb.baker%40northeastern.edu%7C884fe12e0cc045cf17b708d926a74ad8%7Ca8eec281aaa34daeac9b9a398b9215e7%7C0%7C0%7C637583322261122441%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=6sSfYCbNi6nFWa%2FVvFH4wvWY0WoBOj89Sg0yBRuARPs%3D&reserved=0>, including by arguing that there are more effective alternatives.

Covid-19 vaccine manufacturers say that they have voluntarily forged 300 partnerships around the world, and can produce enough vaccines for all adults this year.

The European proposal would allow for subsidies to be paid to expand production. It calls for the WTO to monitor export restrictions.

The bloc also says it would be quicker to streamline the WTO’s existing Trade-Related Aspects of Intellectual Property Rights, or TRIPS, rules than negotiate any new waiver. It proposes removing requirements for countries to negotiate with patent holders, envisages compensation to patent holders that entails no profit, and allows for export to any countries that lack their own manufacturing capacity. 

“Instead of negotiations which will not lead anywhere, it makes more sense to look at the options we have available on which everybody can agree,” said an EU official. 

Developing nations say TRIPS rules, which permit countries to issue what are known as “compulsory licenses” to manufacture medicines in emergencies, are so cumbersome that they are unworkable. Their proposal also covers more than patents, including other types of intellectual property such as copyrights and trade secrets needed for manufacturing, which aren’t covered by the TRIPS agreement. 

The European proposal was described as “hot air” by one trade official of a developing country. The ambassador of another developing nation said he hoped the WTO would discuss the two proposals separately, to allow the consideration of the waiver to progress.

Developing nations have battled for eight months to lift intellectual property protections over Covid-19 vaccines. In that time, they say, new production lines could have been set up in their countries, while it appears the pandemic will drag on for years in the developing world, meaning that the waiver is still needed.

World Health Organization chief Tedros Adhanom Ghebreyesus says he supports the waiver and has described the current situation as “vaccine apartheid.”

The waiver is gaining support at the WTO, with New Zealand and Ukraine this week announcing their backing. But the WTO works on consensus so negotiations are often slow.

Along with the EU, the U.K. and Switzerland are among the critics of the waiver, although all have said they would examine the proposal. 

A U.S. official said the administration is reviewing the new proposal from developing countries and looks forward to negotiations on the text.

The EU says it has exported nearly 300 million doses, around half of the Covid-19 vaccine produced in the bloc, arguing it did so earlier and more generously than other richer economies <https://nam12.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.wsj.com%2Farticles%2Fpoor-countries-ask-wealthy-ones-to-do-more-to-stave-off-covid-19-surge-11621602003%3Fmod%3Darticle_inline&data=04%7C01%7Cb.baker%40northeastern.edu%7C884fe12e0cc045cf17b708d926a74ad8%7Ca8eec281aaa34daeac9b9a398b9215e7%7C0%7C0%7C637583322261132432%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=tp%2BXxroHPi52LTSo2cn2DJr349rgweXy2%2BOgtOrYIxU%3D&reserved=0>. The U.S. has pledged to share 80 million vaccine doses with other countries by the end of June.

https://www.whitehouse.gov/briefing-room/statements-releases/2021/06/03/statement-by-president-joe-biden-on-global-vaccine-distribution/ <https://www.whitehouse.gov/briefing-room/statements-releases/2021/06/03/statement-by-president-joe-biden-on-global-vaccine-distribution/>
Statement by President Joe Biden on Global Vaccine Distribution
JUNE 03, 2021•STATEMENTS AND RELEASES <https://www.whitehouse.gov/briefing-room/statements-releases/>
As the United States continues our efforts to get every eligible American vaccinated and fight COVID-19 here at home, we also recognize that ending this pandemic means ending it everywhere. As long as this pandemic is raging anywhere in the world, the American people will still be vulnerable. And the United States is committed to bringing the same urgency to international vaccination efforts that we have demonstrated at home.

Already the United States has committed $4 billion to support COVAX, and we have launched partnerships to boost global capacity to manufacture more vaccines. My administration supports efforts to temporarily waive intellectual property rights for COVID-19 vaccines because, over time, we need more companies producing life-saving doses of proven vaccines that are shared equitably. We have already shared more than 4 million doses of vaccine with Canada and Mexico, and last month, I announced that, by the end of June, the United States will share 80 million doses of our vaccine supply with the world.

Today, we’re providing more detail on how we will allocate the first 25 million of those vaccines to lay the ground for increased global coverage and to address real and potential surges, high burdens of disease, and the needs of the most vulnerable countries. At least 75 percent of these doses—nearly 19 million—will be shared through COVAX, including approximately 6 million doses for Latin America and the Caribbean, approximately 7 million for South and Southeast Asia, and approximately 5 million for Africa, working in coordination with the African Union and the Africa Centres for Disease Control and Prevention. The remaining doses, just over 6 million, will be shared directly with countries experiencing surges, those in crisis, and other partners and neighbors, including Canada, Mexico, India, and the Republic of Korea.

We are sharing these doses not to secure favors or extract concessions. We are sharing these vaccines to save lives and to lead the world in bringing an end to the pandemic, with the power of our example and with our values. And we will continue to follow the science and to work in close cooperation with our democratic partners to coordinate a multilateral effort, including through the G7. 

Strong American leadership is essential to ending this pandemic now, and to strengthening global health security for tomorrow—to better prevent, detect, and respond to the next threat. The United States will be the world’s arsenal of vaccines in our shared fight against this virus. In the days to come, as we draw on the experience of distributing the vaccine doses announced today, we will have more details to provide about how future doses will be shared. And we will continue to do all we can to build a world that is safer and more secure against the threat of infectious disease.

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