CETA and the Erosion of India’s IP and Public Health Safeguards

The India–United Kingdom Comprehensive Economic and Trade Agreement (CETA) contains provisions in its Intellectual Property chapter that may dilute India’s long-standing stance on compulsory licensing and technology transfer on favourable terms.

Dilution of Compulsory Licensing Provisions

• Shift from Compulsory to Voluntary Licensing: Article 13.6 of CETA promotes voluntary licensing as the “optimal route” for access to medicines, undermining India’s TRIPS-consistent safeguard of compulsory licensing.
• Precedent in Sorafenib Tosylate Case: The 2012 compulsory licence to Natco Pharma reduced the monthly cost of treatment from ?2,80,428 to ?8,800, demonstrating the public health benefits of compulsory licensing.
• Weakened ‘Working’ Requirement: CETA reinforces earlier dilution from India–EFTA FTA by extending patent “working” reporting intervals to not less than three years, reducing a key ground for issuing compulsory licences.

Public Health and Access Implications

• Reduced Bargaining Power of Domestic Firms: Voluntary licences place developing country manufacturers at a disadvantage, allowing patent holders to impose restrictive supply and distribution conditions.
• Case of Remdesivir Pricing: Under a voluntary licence with Gilead Sciences, Cipla priced remdesivir higher in purchasing power terms than Gilead’s U.S. price, showing limits of voluntary licensing in ensuring affordability.
• Undermining Doha Declaration Gains: India’s support for voluntary licensing weakens the coalition of developing countries that secured compulsory licensing rights under the 2001 Doha Declaration on TRIPS and Public Health.

Impact on Technology Transfer Demands

• Departure from ‘Favourable Terms’ Principle: CETA compromises India’s NIEO-era position that technology transfer from advanced to developing countries must occur on preferential and concessional terms.
• Climate Technology Access Barriers: India’s 2024 UNFCCC Biennial Update Report highlighted slow international technology transfer and IPR restrictions as barriers to adopting climate-friendly technologies.
• Loss of Negotiating Leverage: Weakening the demand for favourable technology transfer terms may reduce India’s bargaining power in future climate and industrial technology negotiations.

Practice Question:

"Critically examine how the intellectual property provisions in the India–UK Comprehensive Economic and Trade Agreement could affect India’s public health safeguards and its long-standing position on technology transfer. Suggest policy measures to preserve strategic interests in future trade negotiations."