Washington DC, 20 Apr (D. Ravi Kanth) – The World Trade Organization director-general Ms Ngozi Okonjo- Iweala on 19 April claimed that the meeting she convened with four trade ministers, vaccine manufacturers, and other stakeholders on “COVID-19 and vaccine equity” enabled frank discussions among the participants, said people familiar with the development. At a virtual meeting with the WTO Secretariat staff on 19 April, Ms Okonjo-Iweala devoted more than 25 minutes speaking on the meeting on COVID-19 and vaccine equity that she chaired last week, suggesting that there has been frank talk of the issues concerning vaccine equity and the un-utilized production capacity for vaccines in companies.
Ms Okonjo-Iweala also underscored the importance of the trade and health initiative proposed by the Ottawa Group of countries, but did not suggest how she would take the unfinished discussion on vaccine equity and associated issues forward, said people, who preferred not to be quoted.
At the end of the “Covid-19 and vaccine equity” event last week, Ms Okonjo-Iweala summarized her expectations “from WTO Members” to “advance negotiations in the TRIPS Council on the waiver proposal and incentives for research and innovation,” adding that “I hope that the ideas and the open dialogue heard will move us closer to agreement.” (See https://www.wto.org/english/news_e/spno_e/spno7_e.htm).
However, at the 19 April meeting with the Secretariat staff, she did not provide any indication whether and how such discussions on the TRIPS waiver will be advanced, as also repeatedly demanded by more than 100 WTO members, said people, who asked not to be quoted.
In sharp contrast, leading US senators from the Democratic Party have raised the bar for an urgent approval of the proposed TRIPS waiver by the Biden-Harris administration.
In a letter written to US President Joseph Biden, ten senators led by Bernie Sanders and Elizabeth Warren urged the US administration “to support the adoption of this temporary waiver; doing so will help to ensure the most effective and efficient response to this once-in-a-lifetime global pandemic.”
The growing support from the US senators and US Congressmen and Congresswomen as well as hundreds of civil society organizations coupled with a call from former leaders and Nobel Laureates seem to be turning the tide in favour of the TRIPS waiver, as other forms of collaboration, including bilateral and voluntary licenses seem to be further widening the inequitable access to vaccines, as at least half of the global production is snapped up by high- income countries that only make up 16% of the world population, said people familiar with the TRIPS waiver discussions.
In fact, with the worsening second and third waves of the COVID-19 pandemic in many countries and multiplying levels of death and disruption across countries, the need for exceptional measures such as the TRIPS waiver could not have come a day too soon, said people, preferring not to be quoted.
After talking to several participants who attended the DG-convened meeting on COVID-19 and vaccine equity last week, the following points have emerged from the meeting.
They include:
1. It is difficult to think that a meeting of this kind and the way it has been organized on different themes – (1) challenges for equitable vaccine distribution, (2) vaccines manufacturing capacity, and (3) the path forward – and with 50 participants, would produce any concrete results;
2. The DG tried hard to give an impression that she is doing something and bringing the stakeholders to the table, but it is not clear whether such an effort would assist the discussion in any way or create a parallel process to take away the attention from the proposed TRIPS waiver;
3. The sponsors of the TRIPS waiver proposal reckon the DG’s meeting as a parallel process and are prepared to engage in any constructive discussion to find a solution;
4. Regardless of the DG’s meetings to advance her “third way” framework that is based on opaque and burdensome voluntary license conditions, it is important for the sponsors of the TRIPS waiver to push for a decision;
5. At least what came out from the discussions at the DG-convened meeting has only buttressed the case for the TRIPS waiver, as members are saying that IPRs are the barrier and that there is un-utilized production capacity in the developing countries;
6. A number of manufacturers from the developing countries at the meeting raised the point that they can produce one billion doses and that they have not been able to use the un-utilized capacity because of the way the contracts are structured and the stipulations contained in those contracts which limit the companies’ ability to produce beyond what was prescribed;
7. The developing country manufacturers also spoke about serious issues of technology transfer and know-how, which are constraining them from ramping up production;
8. In a way, the meeting did amplify some of the points raised by the TRIPS waiver sponsors during the TRIPS Council meetings;
9. The meeting also revealed that inequity in vaccine access is not correct and it is a problem with the limited supply of vaccines and what is required is to unlock the technology transfer and know-how and data transfer;
10. However, the solution suggested by some participants like the European Union is that the vaccine problem can be addressed with TRIPS flexibilities which are to raise the production of vaccines;
11. The USTR Ambassador Katherine Tai issued a mixed baggage of views, which suggests that the Biden Administration is still considering various options and they did not want to reveal their mind yet;
12. Also, the US acknowledged that the lessons of the past health crises like HIV/AIDS should not be repeated;
13. The US said the market-based system is rigged and the USTR adopted a human-centered approach;
14. Manufacturers from the developed countries made demands aligned with trade and health and the removal of export restrictions but if the supply-side for vaccines is blocked, it does not matter on the rules that are created;
15. The most sustainable solution to overcome vaccine nationalism and hoarding is to address the ramping up of production by ensuring that the transfer of technology and know-how are accepted;
16. The meeting also showed weaknesses in bilateral mechanisms and underscored the need for a multilateral solution.
In short, the DG’s meeting seemed more like the proverbial “dog’s breakfast” where there are things for all sides to pick up issues on vaccine equity, said an analyst, who asked not to be quoted.
Meanwhile, the chair of the TRIPS Council, Ambassador Dagfinn Sorli from Norway, has apparently clarified to members late last week about what he said at the DG’s vaccine equity event earlier in the week.
He is understood to have said that notwithstanding the shared objective and active engagement on the TRIPS waiver, there are fundamental differences, most importantly in relation to the basic assumptions underpinning the waiver request.
Ambassador Sorli apparently said that members continue to differ on the fundamental question of whether, and to what extent, intellectual property protection represents barriers or challenges to the achievement of the common objective, which could not be overcome by using the existing TRIPS flexibilities.
He suggested that the co-sponsors of the TRIPS waiver proposal are of the clear opinion that such challenges do exist and can only be effectively addressed by waiving certain TRIPS obligations, according to people familiar with his note sent to members.
Ambassador Sorli suggested that several members remain unconvinced about the necessity of a waiver at the international level, with some arguing that a waiver might be counterproductive in relation to ongoing collaborative efforts.
In conclusion, while there is growing acceptability for the TRIPS waiver outside the WTO, a handful of countries are attempting to undermine an early decision on text-based negotiations on the waiver. – Third World Network
Published in SUNS #9330 dated 21 April 2021
