Protectionism in the industrial area has not been restricted to
textiles. Over the last few years the US has been using the option of
introducing ''anti-dumping'' levies to prevent import surges or market
disruption as a protectionist device against manufactured imports from
the developing countries. The most blatant example is that of steel,
where industry and union pressure led to the introduction of levies that
violate WTO norms. Not surprisingly, the WTO's dispute settlement panel
has already ruled against the US in cases filed by some countries, and
is expected to do the same in others, including one filed by India.
These
developments have deprived most developing countries of even the limited
benefits they were to get from the Uruguay Round, and made them
suspicious of claims that a new round would bring further gains. Not
surprisingly, they are demanding something in return for their own
liberalisation efforts, which have substantially increased the access of
developed-country producers and investors to their markets. This makes a
review of the implementation of the Uruguay Round agreement, and a
revision of that agreement to accommodate developing country interests,
their principal concern.
Of all the Uruguay Round agreements, the
TRIPS agreement is possibly the one in greatest need of revision. The
TRIPS Agreement protects intellectual property rights in all WTO member
countries and constrains the production of imitation products. It is
estimated that the number of patents granted worldwide in 1995 was about
710,000 and that at the end of 1995 about 3.7 million patents were in
force in the world. Since then, there has been an increase in patenting
activity, dominantly by large companies based in the North. Thus, it has
been estimated that industrial countries hold 97 per cent of all
patents, and that 90 per cent of all technology and product patents are
held by MNCs. Privately, negotiators acknowledge that the TRIPS
Agreement was to a great extent driven by MNC interests rather than the
requirements of citizens across the world. The developing country case
for revision has many grounds:
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It has been stressed
by the representatives of several developing countries in the WTO that
the objective of fostering the transfer and dissemination of
technology, which is already explicitly stated in Article 7 of the
TRIPS Agreement, should be made operational through special
provisions. This is because, after a period in the early 1990s when
technology access constraints were relaxed somewhat, there has been a
tightening up after TRIPS was signed. Also, the stronger protection to
invention which has been granted under TRIPS makes it more difficult
for industries in developing countries to adapt and use, through
reverse engineering and other devices, developed elsewhere. This
reduces one of the more obvious means of "catching up" by late
industrialisers, and closes one of the more important sources of
technology particularly for small and medium enterprises across the
world.
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Much technological
progress in the recent past has been in the field of biotechnology and
genetic engineering, which in turn has been based on generic resources
which are often available only in the tropics (that is, mainly
developing countries). Increasingly, while research organised by
private corporations into genetic resources has drawn on the
traditional knowledge of indigenous communities, these communities and
peoples themselves do not benefit from the patents or even from the
resulting inventions. Reconciling the TRIPS agreement with the
Convention on Biological Diversity and accommodating "farmers'
rights", defined by the FAO as the "rights arising from the past,
present and future contribution of farmers in conserving, improving
and making available plant genetic resources" must become one of the
focal points of renegotiation.
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Article 27.3 (b) of TRIPS says that members may also
exclude from patentability plants and animals other than
micro-organisms, and essentially biological processes for the
production of plants and animals other than non-biological and
micro-biological processes. However, members shall provide for the
protection of plant varieties either by patents or an effective sui
generis system or by any combination thereof. These provisions were to
be reviewed after four years, but no systematic review has been put
into place at the WTO. In this context, a recent proposal of the
African Group of WTO members is significant, as it questions the TRIPS
Agreement's requirement for mandatory patenting of some life forms and
some natural processes. It calls for a clarification that plants,
animals and micro-organisms should not be patentable, and that natural
processes that produce plants, animals and other living organisms
should also not be patentable. The paper also puts forward the view
that by stipulating compulsory patenting of micro-organisms (which are
natural living things) and micro-biological processes (which are
natural processes), Article 27.3(b) contravenes the basic tenets of
patent laws: that substances and processes that exist in nature are a
discovery and not an invention and thus are not patentable. The
African countries have thus proposed a review of TRIPS which would :
(a) clarify that developing countries can opt for a national sui
generis law that protects innovations of indigenous and local farming
communities; (b) allow the continuation of traditional farming
practices, including the right to save and exchange seeds and sell
their harvests; (c) prevent anti-competitive rights or practices that
threatens food sovereignty of people in developing countries; (d)
harmonise Article 27.3(b) with the provisions of the CBD and the FAO's
International Undertaking, which take into account the conservation
and sustainable use of biological diversity, the protection of the
rights and knowledge of indigenous and local communities, and the
promotion of farmers rights. These proposals have been supported by
many other developing countries.
It has
also been pointed out that the implementation of public health policies
may be restrained by the implementation of TRIPS. It forces all
countries rich and poor to adopt the same, strict guidelines on
respecting corporate patents, trademarks and copyrights. The TRIPS
guarantees monopoly ownership over, among other things, pharmaceutical
patents; thus a WTO member may not be able to suspend intellectual
property rights even to address critical public health issues. Once an
approach focused on public health is accepted, several articles may
require revision, for instance, Article 27.1 in order to exclude the
patentability of "essential medicines" listed by WHO; Article 30 so as
to incorporate an explicit recognition of an "early working" exception
for the approval of generic products before the expiration of a patent;
and, Article 31 in order to clarify the right to grant and the scope of
compulsory licenses for public health reasons. One of the most important
areas of public concern relates to the availability and prices of
life-saving drugs. The move from process patents to product patents
dramatically reduces the ability of companies in developing countries to
produce cheaper versions of important life-saving drugs, especially
those relating to cancer and HIV/AIDS. The extent to which this can make
a difference is apparent in the very wide differences in drug prices
that can be observed in India, where product patents are were not in
force and other developing countries in Asia where such patents were
allowed in the 1990s. |