IPR waiver best bet to boost vaccine output
THE US decision to support the proposal made by India and South Africa for waiver of intellectual property rights (IPR) protection for vaccine production has been unexpected and a dramatic fillip to the initiative. Significant roadblocks still stand in the way of implementing the idea as other rich countries like those in the European Union need to be convinced about it. But there is no doubt the surprising, though very welcome decision by the Biden administration, will help sway even those strongly opposed to it. The move indicates that the new US regime is taking a radically different approach to global policies. It has always staunchly opposed any dilution of IPR on any ground at multilateral fora in the past. American interests will still be paramount, but it is bowing to public opinion which says that the international pandemic needs to be dealt with by global cooperation rather than insularity.
The decision to support the waiver at the World Trade Organisation (WTO) came on the heels of the other welcome announcement that it would help India to overcome its Covid crisis by humanitarian aid and by allowing the export of vaccine-related products. It must not be forgotten, however, that the decision to aid India came only after the US had managed to fully vaccinate one-third of its population and is thus in a good position to vanquish the virus — a lesson learnt for India which tried to be a model global citizen by exporting vaccines, but in a reckless manner without taking its own needs into account. Even now, the US is sitting on stockpiles of surplus vaccines without any sign of exporting them to countries facing shortages.
The waiver by itself must be viewed as a long-term gain for India as well as other developing countries. It will not solve the immediate emergency facing this country in terms of dire shortages of hospital beds, oxygen, medicines and even vaccines. It will also not give an impetus to the medium-term requirement of enhancing healthcare infrastructure. The initiative, in case it ultimately succeeds, will bear fruit only by next year at the earliest. Negotiations at the WTO typically take months due to the mandatory consensus needed from all 164 member countries. The other considerable obstacle is the pressure bound to be put by the powerful global pharmaceutical industry on Western governments to stall the move. It is already arguing this could stifle innovation and prevent companies from reaping the benefits from investments made in research and development.
In the case of Covid vaccines, however, most of the financing has come from governments concerned and not from the private sector pharma industry itself. Billions of dollars were poured into Operation Warp Speed by the US while Germany and the UK also provided unprecedented financial support so that a Covid vaccine was produced in the amazingly rapid time of less than a year by Pfizer, Moderna, Johnson and Johnson and AstraZeneca. At the end of the day, the pharma companies cannot say that public funding should not lead to public good. Corporate profits in the global drug industry have already skyrocketed over the past year and stock values of these companies have risen exponentially. Great noise has been made over the dip in share prices recently after the US decided to support the IPR waiver, but little over the steep rise in the past year.
Yet it will still take considerable negotiating skills to bring about the needed consensus at the WTO. At this stage, one must recall the pioneering efforts of previous negotiators who enabled this country to become a leader of the South in ensuring IPR does not curb access to affordable drugs in poorer countries. Both Manmohan Singh and Pranab Mukherjee were involved in the original multilateral trade negotiations that led to the creation of the WTO as well as the IPR regime now in force. Indian negotiators ensured for many years that this country stayed out of the product patents regime and maintained the system of process patents right up to 2005 when Indian laws had perforce to be brought in line with WTO regulations. The clause allowing compulsory licensing in case of public health crises was incorporated in TRIPS (trade-related aspects of intellectual property rights), largely due to India’s efforts.
One must also not forget the role of the then Commerce Minister Murasoli Maran at the Doha ministerial conference in 2001. It was his aggressive advocacy that led to the WTO recognising the seriousness of public health problems of poor countries. It acknowledged that TRIPS should not hinder countries from taking measures to protect public health not only by issuing compulsory licences to local firms, but also by allowing imports by countries with inadequate manufacturing capacities. The terminology was that imports could be used for dealing with HIV/AIDs, malaria, tuberculosis and “other epidemics”, a phrase which resonates darkly today.
The current initiative is for a waiver of IPR on a global basis, rather than by individual countries, in a bid to prevent delay in increasing vaccine production. There will still be some wait even after the decision is taken, to enable technology transfer and ultimate ramping up of output. It is here India should have a clear advantage over other countries owing to its large unutilised vaccine production capacity. There are as many as 24 vaccine manufacturers and even other pharma companies are capable of making various types of vaccines, including the much-vaunted mRNA vaccines that require storage in extremely cold conditions. The good news is that hyper-cold temperatures are no longer needed and several vaccines can be stored in a way that will make them viable for use in developing countries like India.
The process of negotiations for ensuring the IPR waiver is finally concluded will be long and tedious. It should thus not be cited as a victory of any kind for this government, even if the US has decided to lend its weight to the proposal. The tendency to be triumphal on such issues needs to be resisted by the government right now as the country is in a sombre mood, having become the calamitous epicentre of the global pandemic.
