India-U.K. FTA: A Compromise on Public Health and Technology Transfer?
UPSC Relevance
Prelims: International Relations (Free Trade Agreements - FTAs, World Trade Organization - WTO, TRIPS, Doha Declaration), Indian Economy (Patents Act, Compulsory Licensing), Health (Access to Medicines).
Mains:
GS Paper 2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests; Issues relating to development and management of Social Sector/Services relating to Health.
GS Paper 3: Issues relating to intellectual property rights.
Key Highlights from the News
The article argues that the provisions in the Intellectual Property (IP) chapter of the recently signed India-U.K. Comprehensive Economic Trade Agreement (India-U.K. CETA) undermine India's long-standing positions.
The main issue is Article 13.6 of the agreement, which prioritizes voluntary licensing over compulsory licensing to ensure access to medicines.
This weakens India's stance on two key issues:
India's strong position on using compulsory licensing to reduce the price of patented medicines.
India's argument that technology should be transferred to developing countries "on favourable terms."
The article cites the example of the 2012 compulsory license for the cancer drug Sorafenib Tosylate, which reduced the drug price from ₹2.8 lakh to ₹8,800.
Compulsory licensing is a key right secured by developing countries, including India, through the Doha Declaration of 2001.
Indian patent law allows for compulsory licenses if a patented invention is not "worked" in India. However, this provision is also being weakened by new trade agreements.
Agreeing to transfer technology "on mutually agreed terms" in the agreement will affect India's ability to demand technology "on favourable terms" in issues like climate change.
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