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TRIPS won't get fixed this year

The WTO is unlikely to get an agreement at all for two years, and to be honest most of the activities of people trying to make trade more pro-poor have been to do with agriculture. But TRIPS will resurface in the future. This is an article from Intellectual Property Watch:
Key officials in Geneva indicate that World Trade Organization members are not likely to find a compromise on a permanent amendment to global trade rules in order to allow poor countries to import affordable medicines in time for the December WTO ministerial in Hong Kong.

There is no formal deadline for items to be included in the Hong Kong agenda, but “in practical terms any text to be taken to Hong Kong should be completed by about 2 December at the latest,” a WTO official said. That is because the following week people will have started travelling, he said. The ministerial will be held from 13 to 18 December. The public health issue is not required to be part of Hong Kong agenda.

At issue is a mandate for members to make a permanent amendment to the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) to allow countries to import cheap generics under compulsory licenses when deemed necessary. Such a waiver was mandated to be made permanent by 2002 under paragraph six of the 2001 Doha Declaration on TRIPS and Public Health. A temporary waiver was agreed on 30 August, 2003.
TRIPS is opposed by the leading free-market economists. Dr Razeen Sally of the London School of Economics says in a report for the Cato Institute, under the heading "Alarming Trends in the WTO": "TRIPS takes WTO rules in a new direction - not further in the direction of market access, but elsewhere, towards a complex, regulation-heavy standards harmonization agenda..."

Similarly, Prof. Jagdish Bhagwati attacks TRIPs in his book In Defense of Globalization. He writes that: "The damage inflicted on the WTO system and on poor nations has been substantial." He attacks the "pseudo-intellectual justification" for them through the pretense that they were "trade-related". Moreover, he writes:
TRIPs... were like the introduction of cancer cells into a healthy body. For virtually the first time, the corporate lobbies in pharmaceuticals and software had distorted and deformed an important multilateral institution [the WTO], turning it from its trade mission and rationale and transforming it into a royalty collection agency.

The consequences have been momentous. Now every lobby in rich countries wants to push its own agenda, almost always trade-unrelated, into the WTO, following in the footsteps of the IPP [intellectual property protection] lobbies. This is true... of the AFL-CIO and the ICFTU (International Confederation of Free Trade Unions), which want labor standards to be included in the WTO in the form of the Social Clause, allowing trade sanctions to kick in if the included labor standards are not met. Their principal argument is that TRIPs were allowed for the benefit of capital, so the Social Clause must be allowed to do the same for labor; environmentalists want the same done for nature.
So while drug companies pretend to support free markets, the reality is that their lobbying is damaging the future ability to make free trade agreements.

Wednesday, November 23, 2005

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