Talks on Terms of Tech Transfer in Run into Unruly Trade Winds [Pandemic Treaty Negotiations]

Newsletter Edition #124 [Treaty Talks]

Hi,

In the backdrop of what looks like a bonfire of international trade rules, WHO member states are trying to broker and conclude a global pandemic agreement to fight systemic risks, that needs cooperation, sharing of information, ensuring access to medical products even as industry demands more protection on intellectual property.

While it is one of the toughest phases to conclude a treaty, the timing could not be more urgent for multilateral rule-making in global health.

Read our update on the tech transfer discussions in the pandemic treaty negotiations, and how ongoing economic impulses are seeping through global health discussions.

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Priti

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Illustration Credit: Amy Clarke, Chembe Collaborative

I. INB13 UPDATE

Talks on Terms of Tech Transfer in Run into Unruly Trade Winds

By Priti Patnaik

Nishant Sirohi contributed to this story

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As many as 80 developing countries are pushing back against explicitly stating voluntary approaches for technology transfer during pandemic emergencies, in the draft WHO Pandemic Treaty currently under negotiation in Geneva – these include members of the Africa Group (47), and the Equity Group (30+). In addition, a number of other developed countries, are not wedded to the word “voluntary” in Article 11 on tech transfer provisions in the treaty. This implies that majority of the WHO member states are keen on protecting their already negotiated policy space to respond to health emergencies by securing the option of using non-voluntary approaches on technology transfer.

However, for a handful of countries the term “voluntary” is a preferred position, these include, Germany, Japan, Switzerland. Sources indicate few other EU member states are also in favour of this position. (The formation of a new government is currently underway in Germany.)

To understand why these countries are pivotal to the discussion on tech transfer, we look at the export numbers. (See more on this below.)

Though public health considerations are tightly dictated by commercial compulsions, there has always been an aspiration to rise in favour of public interest. The room for manoeuvre in these current times has just gotten worse.

The dynamics at WHO, is unfolding in the backdrop of fast-moving economic and political considerations blown up by trade wars between the U.S. and China. And this, changes the field in these negotiations, to an extent.

We reported earlier this week, that tariff wars are muddying these treaty negotiations.

Two days ago on April 8, U.S. President Donald Trump has threatened tariffs on pharmaceuticals. (See Reuters: Global pharma shares plunge as Trump doubles down on tariff threat)

This has opened up a window for EU pharmaceutical manufacturers looking for assurances from the European Commission cautioning authorities of “exodus to the US”, and seeking intellectual property protection.

Now you have the ingredients of a perfect storm in these penultimate days in the pandemic treaty negotiations. Stakeholders still hope that collective wisdom and nimble diplomacy would get countries to the finish line of these negotiations eventually. (There are a bunch of other issues to untangle and agree upon.)

In this story we parse through the considerations and dynamics of the tech transfer discussions at WHO, and also bring you an update on the trade wars that are dragging the world economy into a downward spiral.

Image Credit: Photo by cottonbro studio, Pexels