[CTC] At a ‘critical juncture,’ WTO members look to compromise on IP waiver

[Arthur Stamoulis]

At a ‘critical juncture,’ WTO members look to compromise on IP waiver
By Hannah Monicken, Inside US Trade 
10/7/2021
 
The debate over a proposed waiver of some World Trade Organization intellectual property obligations for pandemic-related products hit a better stride this week, with countries conversing in more constructive and conciliatory tones at the General Council meeting, the last before the upcoming 12th ministerial conference starting at the end of November.
 
The U.S., which supports a waiver for COVID-19 vaccines only, pushed WTO members to find “real compromises” at this “critical juncture,” according to a copy of its remarks. A pandemic-related package is one of the key goals for MC12 and the waiver could be the centerpiece -- if members can work out a way forward.
 
The waiver, proposed a year ago this month, would allow countries to forgo some elements of the Agreement on Trade-Related Aspects of Intellectual Property Rights to speed up the production of vaccines, diagnostics and therapeutics. The proposal is supported by many developing and least-developed countries, while a handful of largely developed members oppose it. Following the Biden administration’s announcement of support, the talks moved to text-based negotiations, but they have since largely stalled as members have not moved much beyond their initial positions.
 
But WTO spokesman Keith Rockwell told reporters on Thursday that “the tone of the discussion was quite constructive” about the TRIPS waiver. “The tone was really quite different from what I have heard before,” he added. “I think there is certainly an understanding of how important this issue is and how short time is.”
 
He characterized it as “some subtle shifting in the direction of compromise from both sides,” while noting that reaching consensus remains very difficult.
 
The U.S. was among those advocating for compromise. It also reiterated its support for the waiver for vaccine production, arguing that “more vaccinations are how we end this pandemic.” The scope of the waiver, its duration and its implementation continue to be the key elements under discussion in the TRIPS Council.
 
“With MC12 coming up in less than 2 months, we are at a critical juncture,” the U.S. said. “We remain committed to engaging with WTO Members to find a way forward that all Members can support. However, unless Members are able to make some real compromises, we worry that there may be the possibility of no outcome -- which would be extremely regretful. It is time for the WTO to come together and deliver the constructive and practical outcome that the world needs.”
 
U.S. Trade Representative Katherine Tai was in Paris this week to meet with trade ministers at the Organization for Economic Cooperation and Development and holding bilateral discussions with her counterparts from several countries. How to ensure MC12 is a success was one of the recurring topics of discussion in these meetings. Tai next week will be in Geneva, including for the last scheduled TRIPS Council meetings before the ministerial, although whether she’ll attend is not clear.
 
The TRIPS waiver would be one part of a larger pandemic-related package that could include a number of different themes, including export restrictions, regulatory coherence and trade facilitation, tariff reductions, services trade, transparency and a framework for future public health crises.
 
New Zealand Ambassador David Walker has been tasked with putting together the package amid consultations with members. He told members during the General Council meeting on Thursday that his goal was to move to text-based negotiations soon.
 
Members hope the package can be part of a larger one that makes up the ministerial “outcome document,” the writing of which is being led by the General Council chair, Honduran Ambassador Dacio Castillo. Specifically, he is working with members on the first part of the document, which the WTO said would cover “the context in which MC12 takes place.” The other two will reflect “broader political messages; and guidance from ministers on additional elements members may agree on,” the WTO noted in a statement on Thursday.
 
“The chair said that, based on the preliminary exchanges in the small group, members believe the first part of the outcome document should take into account both the external and internal environments in which MC12 is taking place, namely the pandemic, the changed trading landscape, and the systemic/internal challenges that the WTO is facing,” the WTO said.
 
Castillo said he would continue to consult with members, both in small groups and through informal General Council meetings. This week is the last scheduled formal General Council meeting before MC12.


Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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