[CTC] Industry Criticism & Republican Attacks on TRIPS Waiver Announcement

[Arthur Stamoulis]

Some hints as to the partisan’s attacks on the TRIPS waiver announcement, as well as Big Pharma’s strategy: "how we negotiate with the WTO moving forward will be critical in mitigating this myopic decision” ...


Politico Morning Trade

— Trade Representative Katherine Tai announced Wednesday the United States supports waiving valuable patent and other intellectual property protections for Covid-19 vaccines to help expand worldwide production of the lifesaving shots.
...
U.S. SUPPORTS WAIVING COVID-19 VACCINE PATENTS: <https://go.politicoemail.com/?qs=927cb5124ddab8255b2106a4e9fca9ab504173617e9b877313fc9fc61f3570f756493ee35b47bb45c4122edb0b5b3d20> The major policy shift breaks with decades of U.S. support for tough intellectual property rights protections and was the Biden administration’s biggest trade decision yet. 

“This is a global health crisis, and the extraordinary circumstances of the Covid-19 pandemic call for extraordinary measures,” Tai said in a statement, setting the stage for tough negotiations at the WTO over the scope of the waiver. 

The decision is a victory for progressive Democrats who have pushed President Joe Biden to endorse India and South Africa's call for a broad waiver of all intellectual property protections for Covid-19 vaccines, therapeutics and diagnostics.

“This is the right thing to do, and a moment to make every American proud,” a group of House Democrats including Jan Schakowsky <https://go.politicoemail.com/?qs=927cb5124ddab8254dc17810d87685f22f4d2c7d11cf253ee739a95f390351476a111f8d1d7601ac32b26c7226ed3b07> (D-Ill.), Rosa DeLauro <https://go.politicoemail.com/?qs=927cb5124ddab825ec9a0a5e12086cf633c41a47563fea53aefadd524ff3baaf7310e3be901bbd6eb03e55c31f41aaf8> (D-Conn.), Lloyd Doggett <https://go.politicoemail.com/?qs=927cb5124ddab8250f1e5448d2a987d3cd7b5119699082dc0626aea2873d9022e7f7b6d3b3392744cb4f441bbd51b80a> (D-Texas) and Earl Blumenauer <https://go.politicoemail.com/?qs=927cb5124ddab825b1538874303540d85a1a277c5906868be7330f9085ff04c93ff4521b6fa04e7f59c78b8eb54ce6e3> (D-Ore.) said in a statement.

Another high-profile advocate, Sen. Bernie Sanders <https://go.politicoemail.com/?qs=927cb5124ddab825dae5f7d01e5f65df2c5a36e1847444ee181ae82bb99fae36df9a5ebd8d71055ec971e7f0cc8ec919> (I-Vt.), also applauded the administration for taking “a bold step” to control the pandemic. “This is exactly the kind of leadership the world needs right now,” he said.

Industry criticism: Both the Pharmaceutical Research and Manufacturers of America and the Biotechnology Innovation Organization blasted the decision.

The two groups have warned granting the waiver could drastically hinder existing efforts to scale up global manufacturing, disrupt efforts to equitably distribute the vaccines to every corner of the globe through an international vaccine alliance and further strain the global supply chain.

"The United States has unfortunately chosen to set a dangerous precedent with these actions. But how we negotiate with the WTO moving forward will be critical in mitigating this myopic decision and its effects on patients around the world,” BIO President and CEO Michelle McMurry-Heath said.

She also urged USTR to insist on terms that, among other things, would prevent the expropriation of technology that has use beyond Covid vaccines and protect American companies from the coerced transfer of technology by foreign governments. 

The China card: Leading Republicans warned that China would be a primary beneficiary of the move at a time when both the administration and Congress are looking for ways to boost U.S. competitiveness and reduce dependence on the Asian giant.

"Not only is the biopharmaceutical industry one of China’s targets for dominance in its Made in China 2025 strategy, but the Department of Justice handed out indictments last summer in connection with the Chinese government’s attempts to steal U.S. Covid research," Senate Finance ranking member Mike Crapo <https://go.politicoemail.com/?qs=927cb5124ddab825e3a31de8e9537bc84af8be876401d9ac2753f661af9d0fe0bcce0f827292a2777458c811018ff913> (R-Idaho) said.


Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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