Laws and Patents in India
Contents:
1. Prologue
2. Laws, Treaties and Reports to Remember
3. Important Terms
4. Historical Background
5. Provisions of IPA 1970
6. WTO and TRIPS
7. IPA 1970 Vs TRIPS
8. Laws Enacted to comply with TRIPS
9. The Novartis Saga
10. Supreme Court Verdict 2013
11. Novartis: Timeline
12. Misc
1. Prologue
* Asked in Mains 2013, the importance of this topic much broader since it covers some more topics in GS syllabus. They are
* Effect of policies and Politics of developed and developing countries on Indias Interest.
* Issues related to IPRs
* International institutions, Agencies their structure and Mandate.
1. Laws, Treaties and Reports to Remember:
1. Patents Laws of British Model enacted in 1852, 1857 and 1859
2. The Indian Patents and Designs Act, 1911
3. Tek Chand Report, 1950 and Ayyangar Report, 1959
4. Indian Patents Act, 1970 amended in 1999, 2002, 2005
5. National Drug Policy, 1970, Drug Price Control Order, 1970 Replaced in 1995 and 2013, National Pharmaceutical Pricing Policy 2012 for 348 Essential Drugs under DPCO 2013.
6. Drugs and Cosmetics Act, 1940
7. Monopolies and Restrictive Trade Practices Act, 1969 replaced by Indian Competition Act, 2002 as amended in 2007
8. WTO, TRIPS, WIPO
1. Important Terms:
(Some Important Definitions we should know to avoid confusions in further read)
1. Radical Innovation: Involves a new product, process (or) system that results from a technological breakthrough. In Pharmaceuticals it has limitations like side effects, extremely costly, high risk etc.,
2. Incremental Innovation: Involves technical modifications of an existing product, process (or) system that results in some improvement (or) enhancement thereto. It helps increased effectiveness over prior known drug products and ensures social & economic values by supporting new drug discovery, risk mitigation etc.,
3. Types of Patents: 1. Ordinary Patens
1. Product Patents
2. Process Patents
2. Combination Patents
3. Selection Patents
4. Convention Patents
5. Pipeline (or) sealed box Patents
1. Product Patents: Innovation relating to manufacturing of machine, article, substance which is new, novel, useful and the patent asked for is called Product patent.
2. Process Patents: Same but the series of steps (or) methods for manufacturing of machine, Multi-active article, substances and patent asked for is called process patent. Ex. Making Coke
3. Bulk Drugs: Also called Active Pharmaceutical Ingredient (API) is the chemical molecule in a pharmaceutical product. Other words, it is the substance responsible for the product being a medicine. Ex. Penicillin. From product to product the Bulk Drugs remains same as it is the identity of the medicine.
4. Formations: The medicines in the form of tablets, capsules, syrups, drops, intravenous fluids etc., are called Formulations. Other words these are we buy in the Pharmaceutical shops.
5. Generic Medicines: A derivative of already patented medicines of MNCs manufactured by local domestic companies available at low cost in the market is called Generic medicines. They serve who cant afford the expensive brands of Big Companies.
6. Compulsory Licensing: It is one of the provisions of Law issued to products/process for various public interest reasons where the patent owner refused to make the invention available to everyone. Indian Patent Laws provides for safeguards against the overuse (or) misuse of patent monopoly by patent owner through the provisions of Compulsory Licensing. This is given to local drug manufacturers by controller of patents @Indian Patent Offices.
1. Historical Background:
* Has beginning in the Act VI of 1856 based on British modeled Patent law of 1852. This had some exclusive privileges granted to inventors of new manufacturers for a period of 14 years.
* The Act was repealed followed by Act IX of 1859 gave exclusive provisions in order to help British patent holders gain control over the Indian Markets.
* The Patents and Designs Act of 1911 first introduced Controller of Patents. The term was 16 years from the date of filing the application. Extended upto 7 years for certain cases additionally.
* The Act of 1911 prevented domestic pharma industry from making reverse-Engineered drugs for which foreign pharma companies held patent rights in India.
* After Independence, Our country in need of revamping since the Pharma industry in bad shape compare to other industries. Prices of Life saving Medicines were high and controlled by MNCs in the Late 50s.
* First set up Tek Chand Committee in 1950 to look into matters prevailing in the Act of 1911 and in its report gave information about the failure of the industry to serve the main purpose.
* Second committee setup under Justice Rajagopala Ayyangar in 1957 and based on this report new law was enacted as Indian Patent Act 1970 and Indian Patent Rules 1972.
* Law was enacted to suit changed political condition and economic needs for providing impetus technological development by promoting inventive activities in the country.
* From then because of the provisions of IPA 1970 India go on to become The Pharmacy of the Poor (or) The Pharmacy of the Developing Countries
1. Provisions of IPA 1970:
* The Act revoked product patent on Food, Medicines, Drugs, Chemicals either produced or prepared. It paved way for domestic generic drug makers use extensive technology of research fellows and manufactured huge sum of drugs, Thus making India Pharmacy of the Poor.
* Allowed making process patents for making pharmaceutical compounds.
* @present India is biggest producer of generic drugs by volumes & leading exporter of medicines to developing countries, Leading supplier of AIDS medicines. Before 1970 MNCs share was 68% in the market.
* Act imposed very broad Compulsory Licensing for pharma process patents. Within 3 yrs of the grant, the patents were deemed Right to license. Means, anyone could use the process if they paid royalty to the patentee. It encouraged lot of competitors and household drug industry.
* It also given in cases of, Reasonable requirements of public not satisfied, Patented Invention is not available to public @affordable Cost and Patented Invention if not worked in the Territory of India.
* Simply, Pharmaceutical products had no patents & Process patents were protected for only 3 years if a royalty given and 5 years if royalty not given.
1. WTO and TRIPS:
* The End of Uruguay round in 1994 led establishment of WTO and so TRIPS(Trade Related Intellectual Property Rights). Countries signed WTO must adopt TRIPS Compliances.
* US led talks to make developing countries to come under its purview and to enact law to protect patent holder, piracy, dumping of products in International Market.
* TRIPS gave 10yrs Waiver as transition period till 2005 to become fully compliance with its Laws to developing countries in place of Green Box and Exclusive Marketing Rights(EMR) provisions.
* Green Box proviso is applying for patents, for anything process(or) product, those who applied earlier given patent rights once the transition period completes and TRIPS compliances were fulfilled (Sort of First Come First Serve).
* EMR provisions were given to applicants in Green Box and they all facilitated with supports from government to be big player in the Market.
* At the end of Doha Development Round in 2001, the TRIPS under WTO allowed member countries to formulate laws within its framework & they are free to adopt national policies & Right to Health. Art 27 to 34 of TRIPS=Particularly to Patents.
* Some of the Provisions are below
* Patents should be available for all fields of technology including product patents to Food, Medicines, Agro Chemicals etc.,
* Patent rights should be without discrimination whether locally made (or) imported.
* Provisions defining Infringements.
* Compulsory Licenses to be allowed only under strict conditions
* Patent term should be at least 20 years from filing.
1. IPA, 1970 Vs TRIPS
IPA, 1970 TRIPS
Only process not product patents in food, medicines and chemicals.Process and product patents in almost allfields of technology
Term of patents 14 years; 5-7 years in chemicals, drugs.Term of patents 20 years
Compulsory licensing- In a compulsory license, a government can force the holder of a patent right to grant use to the state or others.Limited compulsory licensing- under specific circumstances only compulsory license can be granted.
Several areas excluded from patents (method of agriculture, any process for medicinal surgical or other treatment of humans, or similar treatment of animals and plants to render them free of disease or increase economic value of products)Almost all fields of technology patentable. Only area conclusively excluded from patentability is plant varieties; debate regarding some areas in agriculture and biotechnology
Government allowed to use patentedinvention to prevent scarcityVery limited scope for governments to usepatented inventions
1. Laws Enacted to Comply with TRIPS
* The First Amendment of IPA, 1970:
* The Indian Patent (Amendment) Act 1999 was enacted after much deliberation and delay. Since India agreed to Mail Box and EMR provisions of TRIPS in 1995, it did not make them as a law. So US dragged India to WTO dispute settlement mechanism in 1997 and India ensured them in the amendment of 1999.
* The Second Amendment of IPA, 1970:
* The Indian Patents(Amendment) Act 2002 was further included the TRIPS compliance of patent term for 20 years
* This Act also cemented Indias accession to the Paris Convention & Patent Co-operation Treaty (1970).
* These two treaties are part of WIPO (World Intellectual Property Organization) and India a signatory since 1998.
* Paris Conventions national treatment principle- Prohibits discriminating treatment of foreign applicants as well as its rights of priority.
* The Amendment also includes new definition for invention and Inventive Step.
* Also included patentability of micro-organisms and gave broader definitions to Compulsory Licensing.
* The Last Amendment:
* Much important Indian Patents (Amendment) Act, 2005 was the last step to fulfill TRIPS compliances.
* For the first time since 1970, India allowed patents protection to substances & being used in Food, Medicines, Agro Chemicals etc.,
* Made some flexibilities to help domestic drug makers and so the people through sec 3(d) to counter Ever Greening.
* Ever Greening- Patentees kept on applying for new patent rights for their old products though it is expired by modifying their earlier products a little.
* Ever Greening results in monopoly in the market and Expensive.
* Under Sec 3(d) patents would not be granted on following grounds only
* Mere discovery of known substances does not result in the enhancement of the known efficacy of that substance.
* Mere discovery of any new property (or) new use for known substances
* Mere use of a known process, Machine (or) employs at least one new reactant.
* So simply Known Substance=Same Substance unless differ in property regard to efficacy.
1. The Novartis Saga:
* Started in 1997, Novartis applies for patent right through Green Box provision for its Beta-Crystalline of Imatinib Mesylate. brand name Glivec
* Filed petition before Chennai patent office and claimed Novartis invented the B-crystalline Molecule, a salt form of free base Imatnib.
* In 2003, Glivec was granted EMRs in Indian Market. In parallel obtained orders preventing local drug makers to form & sale generic drug version of Glivec. Sold Glives @ $2666/Person/yr, though in generic it would cost $177 to $266/person/yr.
* Pre-grant opposition filed by Indian Pharma associations & by an order of 2006, Chennai patent office restricted granting of Glivec under sec 3(d). Novartis went to Madras HC in May 2006.
* Novartis argued its violating Art-14 of Indian constitution and Sec 3(d) is not complying with TRIPS.
* Patentability of Glivec was heard by Intellectual Property Appellate Board (IPAB). That is technicality of new product.
* Both HC & IPAB ruled against Novartis. Particularly the IPAB decision of Patentability of imatinib made them to go Supreme Court.
* IPAB ruled, since imatinib was patented earlier in 1993, the efficacy of the New B-Crystalline Molecule is same as that of old one. That is Beta form Imatinib Mesylate was not new substance because bioavailability is not the same as therapeutic Efficacy.
* Efficacy = For Ex, If one molecule cures Cancer in 10days, the new one should cure it in 5days. The ability to produce desired therapeutic effect is called Efficacy of the Drug. Also IPAB held the cost of Glivec is too high.
1. Supreme Court Verdict 2013:
* Only Patentability decision of IPAB challenged @SC by Novartis.
* Supports from larger groups for the sake of poor all over world wanted to upheld Sec 3(d) and US lobbying group, R&D MNCs wanted to repeal the Sec 3(d).
* Since it is on the interest of developing countries, the whole world was looking @Indian Judiciary.
* SC used Oxford Dictionary to get the exact meaning of Efficacy given in Sec 3(d).
* Finally held against Novartis. Said Efficacy- Ability to produce the desired of the Imatinib is same as that of earlier version of Imatinib filed in 1993 as part of Zimmerman Patents in US and Other Countries.
* So Sec 3(d) is upheld. Domestic Drug maker and interest groups rejoiced over the verdict.
* Novartis said its going to cut the spending in R&D in India.
* US and other western lobbying MNCs on the SC verdict said, the consequences would be felt in the future.
1. The Novartis : Timeline
* Novartis had sought to overturn a clause in Indian Patents Law that restricts patent protection for newer forms of existing molecules. The case started in 1997 when Novartis filed a plea for a patent for Glivec.
1997: Novartis files a patent application in India for its drug Glivec
2005: India introduces the Indian Patent Act preventing frivolous patents.
Jan 2006: The Patent Controller in Chennai denies Novartis a patent
May 2006: Challenges the Indian government and four other companies in the Madras HC
Aug 2007: The Madras High Court rules against Novartis case
June 2009: The Intellectual Property Appellate Board rejects a fresh appeal
Aug 2009: Novartis approaches the Supreme Court of India
April 1, 2013: Supreme Court rejects Novartis plea for patent
1. Misc:
The Obligation of TRIPS agreement relate to provision of minimum standard of protection within the member countries legal systems and practices. It provides IPRs in following areas
* Patents
* Copyrights
* Trade Marks
* Geographical Indications
* Industrial Designs
* Layout Designs of Integrated circuits
* Protection of Undisclosed Information(Trade Secrets)
* Plant varieties
Legislations Coverings IPRs in India
* Patents: Indian Patents Law, 1970 (Amended Three Times in 1999, 2002, 2005)
* Designs: The Designs Act , 1911 (Newly enacted as The Designs Act, 2000)
* Trade Mark: The Trade and Merchandise Marks Act, 1958(Newly Enacted in 1999).
* Copy Right: The Copyright Act, 1957 as amended in 1983, 1984, and 1992, 1994, 1999 and Copyright Rules 1958.
* Layout Design of Integrated Circuits: The Semiconductor Integrated Circuit Design Act 2000.
* Geographical Indications: The Geographical Indications of Goods (Registration and Protection) Act 1999.
Merits and Demerits of SC Verdict (asked in Mains 2013)
(My Points are Limited Since it has Different Views)
* Merits: Will help in high production of low cost generic medicine.
* Export will be more.
* Will help 300,000 cancer patients with affordable cost in India.
* Benefit the Developing countries.
* Demerits: R&D would be in danger not only in Pharma Industries but also agrochemicals, Nanotechnology etc., since there would be a fear of patentability.
* Negative impact on MNCs = Low FDI= High CAD= High Balance of Payments=Inflation=Low Growth=#EPIC FALL
Indian Competition Policy 2002
* In India, the competition policy is set out in the Competition Act, 2002. Replaced MRTP Act, 1969. The purpose = upholding competition in the Indian market.
* The principal objective of suppliers of goods and services who are in a position to manipulate the market is to maintain their profits at pre-determined levels. Agreements for price-fixing, limited supply of goods and services, dividing the market etc., are the usual modes of interfering with the process of competition and ultimately reducing or eliminating the competition. Where competition is adversely affected to an appreciable extent, such agreements would be anti competitive.
The new Competition Act focuses on four core areas:
(1) Anti- Competitive agreements. (Sec 3)
(2) Abuse of Dominance position. (Sec 4)
(3) Combination Regulation (mergers, alliances etc.) (Sec 5)
(4) Competition Advocacy. (Sec 49)
Competition Commission of India (CCI)
* The Competition (Amendment)Act 2007 lays responsibility on CCI on matters of Promotion of competition Advocacy, Creating Awarness, Imparting Training about competition Issues, Organises Interactive Meeting, Workshops, Seminors with different regulatory bodies, Policy makers, trade organisations, Consumer associations etc
* Also develops research capability in the area of competition economics, Law and policy etc.,
* The Act also estabilishes Competition Appellate Tribunal to mitigate the issues.
Misc Terms: Lets Know Them Too
* Bolar Provisions:
The United States permits testing to establish the bio equivalency of drugs before the expiration of the term of the patent. On the other hand, stock piling before the expiration of the term of the patent is prohibited. A similar provision is sought to be introduced under Section 107A of the Second Amendment Bill of 1999. Where there are acts that are not directly related to production, but are still damaging to the patent owner, an injunction can be obtained under the Civil Procedure Code.
* Cross-Subsidy Model:
The rich pay full price and the poor pay a subsidized price or the government purchases for the poor and supplies through government hospitals. (This would benefit the MNCs who spent Billions in R&D)
* Tiered Pricing:
An approach by Big Pharma MNCs prices their drugs differently for the developed and developing markets.
Other Important Patent Cases @Present
* Pharma giant Bayers petition in the Bombay High Court against the issue of compulsory license to Natco (Domestic Drug Maker) is one in a series of patent infringement suits filed against generic drug companies.
* To Manufacture Sorafenib tosylate for Liver and Kidney Cancer treatment. (Brand Name Nexavar)
* Another Case pharma giant Bristol-Myers Squibb (BMS) filed a patent infringement suit against BDR Pharma in Delhi HC.
Lot of information does available in Mrunal.org/Article Submission contest. To be studied along with them to cover the syllabus on this particular topic.
(In case of Wrong data, infos are deeply regretted. Correction and return intimation are welcomed. Thanking You.)
Name: Marudavanan.S
List of References:
1. A lot of study/Research papers available in google in PDF on Patents and IPRs.
2. The Hindu/Business Line and Frontline for Novartis Case.
Showing posts with label WTO. Show all posts
Showing posts with label WTO. Show all posts
Monday, January 13, 2014
International economics
1. Bretton woods development:
* In the wake of the unprecedented destruction caused to the global economic structure by the Second World War, and the accompanying instabilities and uncertainties that arose in the economies world over, a group of nations met at Bretton-woods for a conference in 1944.
* Their principal objective was to prepare a framework for economic cooperation and co-ordination between sovereign nations having the right to pursue independent policies. The Bretton-woods conference, as it has since come to be known as, addressed itself to three broad issues of interest in international economic relations, viz. (i) trade in goods, (ii)Flow of capital for development, and (iii) stability of exchange rates andprovision for assistance to members who get confronted with shorttermimbalance in their balance of payments.
* In seeking to find a solutionto the problems arising out of these, the Bretton-woods conferencereached an agreement to set up three multilateral institutions, viz. International Monetary Fund, (b) International Bank for Reconstruction and Development (IBRD), and (c) International Trade Organization (ITO).
* The two institutions, IMF and the IBRD(is part of World Bank today) which were set up and started functioning since 1946 came to be identified as Bretton-woods twins.
* The agreement relating to the setting up of the ITO was not ratified bythe US and hence the ITO could not be established. Instead, the US, UKand a few other countries, set up in 1947 an interim organization calledGeneral Agreement on Tariffs and Trade (GATT discussed later in this article).
2. International Monetary Fund:
* The International Monetary Fund(IMF) came in to force on the December 27, 1945. The main functions of the IMF as given below:
1. To facilitate international monetary cooperation;
2. To promote exchange rate stability and orderly exchange arrangements;
3. To assist in the establishment of a multilateral system payment and the elimination of foreign exchange restriction ; and
4. To assist member countries by temporarily providing financial resources to correct maladjustment of their balance of payment (BoP).
* The Board of Governors of the IMF consists of one Governor and one Alternate Governor from each member country. For India, Finance Minister is the Ex-officio Governor While the RBI governor is the Alternate Governor on the Board.
* The day-to-day management of the IMF is carried out by the Managing Director who is Chairman (currently, Ms. Christine Lagarde) of the Board of Executive Directors. Board of Executive Directors consists of 24 directors appointed / elected by member countries/group of countries is the executive body of the IMF. India is represented at the IMF by an Executive Director (currently ArvindVirmani), who also represent three other countries in Indias constituency Bangladesh, Sri Lanka, and Bhutan.
2. World Bank:
The World Bank group today consist of five closely associated institutions propitiating the role of development in member nations in in different areas. A brief account as follows:
1. IBRD
The International Bank for Reconstruction and Development is the oldest of the the World Bank institutions which started functioning (1945) in the area of reconstruction of the war-ravaged regions (WW2) and later for the development of the middle-income and creditworthy poorer economies of the world. Human development was the main focus of the developmental lending with a very low interest rate (1.55 % per annum) the areas of focus being agriculture, irrigation, urban development, healthcare etc. It commenced lending for India in 1949.
1. IDA
The International Development Agency which is also known as the soft window of the WB was set up in 1960 with the basic aim of developing infrastructural support among the member nations, long term lending for the development of economic services.
1. IFC
The International Finance Corporationwas set up in 1956 which is also known as private arm of WB. It lends money to the private sector companies of its member nations. The interest rate charged is commercial but comparatively low.
1. MIGA
The Multilateral Investment Guarantee Agency, set up in1988 encourages foreign investment in developing economies by offering insurance (guarantee) to foreign private investor against loss caused by non-commercial (i.e. political) risk , such as currency transfer, expropriation, war and civil disturbance.
1. ICID
The International Centre for Settlement of Investment Dispute, set up in 1966 is an investment settlement body whose decision is binding on the parties.
3. General Agreement on Tariff and Trade(GATT):
* 23 nations did an agreement at Geneva on October 23, 1947 for decrease tax on import trade.
* This agreement is known as GATT.
* This agreement came in force on January 1, 1948.
* GATT washeadquartered at Geneva.
* But GATT was temporary arragment.
Objective of GATT:
1. Expansion of international trade;
2. Increase of world production by ensuring full employment in the participating nations;
3. Development and full utilisation of world resources; and
4. Raising standard of living of the world community as a whole.
4. WTO:
* The WTO was born out of negotiations, and everything the WTO does is the result of negotiations. The bulk of the WTOs current work comes from the 198694 negotiations called the Uruguay Round and earlier negotiations under the General Agreement on Tariffs and Trade (GATT).
* It established on January 1, 1995. It replaced GATT and it is permanent organization. But is not specialized organization UN.
* Headquarter : Geneva
Objective of WTO:
1. to set and enforce rules for international trade,
2. to provide a forum for negotiating and monitoring further trade liberalization,
3. to resolve trade disputes,
4. to increase the transparency of decision-making processes,
5. to cooperate with other major international economic institutions involved in global economic management, and
6. to help developing countries benefit fully from the global trading system.
Rounds of GATT negotiations:
The meeting of GATT conducted between 1947 to 1993 is called Rounds. The 8 rounds completed under the GATT. First six rounds were about to reduce the tariff. 7th round was about tariff and other barriers and 8th round was different from earlier rounds. This was started at Punta del Este city of Uruguay. Everything was discussed during this round i.e. from item thing to aircraft, bank to telecommunication, medicines to textile. But, member nations were not agreed- therefore no agreement. Therefore the Director General of GATT then Arthur Dunkel made a broad proposal. This proposal is called Dunkel Proposal. This proposal transformed into final agreement on December 15, 1993. 124 countries including India signed this proposal. GATT came to end on December 12, 1995.
Function of WTO:
Administering WTO trade agreements
Forum for trade negotiations
Handling trade disputes
Monitoring national trade policies
Technical assistance and training for developing countries
Cooperation with other international organizations.
Structure of WTO:
The WTO secretariat is headed by a Director General with a three-tier system of decision making. The decisions are made at three levels: (i) Ministerial Conference, (ii) General Council and other councils, and(iii) Heads of Delegations.
Ministerial conferences of WTO:The ministerial conference of WTO is the highest decision making body of WTO. It meets once in two years. The Finance minister of every member nation participates in it.
The General Council of the WTO, togetherwith the other councils for Trade in Goods, Trade in Services andIntellectual Property, performs the WTO functions. These councils areresponsible for overseeing the implementation of the WTO agreementsin their respective areas of specialization.
The third-tier of decision-making, at the Heads of Delegation level, is most effective in overcoming inherent impediments for reachingconsensus on a trade-related issue.
The current Director-General of the WTO is Roberto Azevdo.
Ministerial Conferences of WTO:
1st ministerial conferences at Singapore: 1996 December 9 to 13. This conference created controversy between developed and developing countries. There were two controversial issue in this conference: (1) Social clause. (2) Singapore issue.
1. Social clause: according to USA there is more child labour in developing countries (including India). There might be tariff on import in USA from developing countries, as long as they solve problem child labour. For this USA referred article of GATT. Developing countries opposed vigorously for this.
2. Singapore issue: this conference discussed four issue , this known as Singapore issue. These are Investment, Competition, Collection by government, and straitening the trade
2nd conference at Geneva: 1998 -18 to 20 May. It discussed Uruguay round and Singapore issue.
3rd conference at Seattle: 1999 November 30 to December 3. There was much protest during this conference. The view of protesters was that WTO will effect badly on human development and environment.
4thconference at Doha: 2001 November 9 to 14. This round has been temporarily named as the Doha Development Round. This round beganin January 2002 and was expected to end by January 1, 2007. It has,however, not concluded till today.The Doha round of trade negotiations mandated negotiations onagriculture, industrial products, services, intellectual property, WTO rules,trade and environment. The negotiations at WTO reached a dead-end inJuly 2006 and were temporarily suspended. Since then, some attemptshave been made to revive them, but these have not been successful.
5th conference at Cancun: 2003 September 10 to 14. There was much protest against Globalization in this conference. The controversy created between developed and developing countries about Agreement on Agriculture (discussed late in this article) and Singapore issue. Unity between developing countries was an important incidence inthis conference. Developing countries created a group under the leadership of Brazil (called G-20) for put points of Agreement on Agriculture on table. Another group also created under the leadership of Malaysia for cross out Singapore issue.
6th conferences at Hon Kong: 2005 December 13 to 18. Decision taken for complete Doha round by 2006. Decision taken to end subsidy on agricultural exportation of developed countries. Decision taken to end the subsidy on cotton exportation of developed countries.
7th conference at Geneva: 2009 November 30 to December 2. The result of Doha did not come.
8th conference at Geneva: 2011 December 15 to 17. Decision take to give a membership for Russia, Samoa, Montenegro and Vanuatu. Three issue discussed trade and development, importance of multiparty trade, and Doha Development Agenda.
9th conference at Bali: 2013 December 3 to 6.
Important points:
Agreement on anti-dumping (ADA):
The objective of this agreement is to provide the right to the contractingparties to applyanti-dumping measures. These are measures againstimports of a product if such imports cause injury to a domestic industryin the territory of the contracting party.The ADA allows member-nations to apply anti-dumping measures on aunilateral basis after elaborate investigations. The anti-dumpinginvestigation determines whether:
* an imported product has been dumped;
* it has caused material injury to the domestic industry of a like product;
* there is a causal link between dumped imports and the injury.
If the investigations establish these three factors, the government is allowed to levy anti-dumping duty on imports. This duty could be levied on imports either from a specific country or a group of countries.
Agreement on Agriculture (AOA):
Agreement on Agriculture (AOA):
The approach adopted here is to encourage gradual reduction of trade distorting subsidies. The AOA specifically deals with: (i) providing market access, (ii) containing of export subsidies, and (iii) regulatingdomestic support.
1).Market Access:
The AOA requires tariffication of all NTBs, and a reduction of those tariffs by an average of 36 percent for developed countries and 24 percent for UDCs. Developed countries were given 6 years to bring about these reductions, while developing countriesare given 10 years. The time counting has begun from 1995.
2). Export Subsidies:
Export subsidies have to be reduced by 36 percent in budgetary terms and 21 percent in volume over a six-year period. The developing countries have been given lower reduction targets of 24 and 14 percent respectively over a longer period of 10 years.
3). Domestic support:
A distinction has been made between subsidies that did not distort trade and those that do. Only the trade distortingsubsidies have to be reduced, if they are above the permissible level.The following have been exempted from this provision.
* Green Box: Subsidies with no, or minimally trade distorting, effecthave been put in this box. These are not subject to any reductioncommitments. It includes all government service programmes.
* Blue box: It contains those subsidies whose continuation is subject to a limitation on production.
* Whit box: It includes such subsidy practices in developingcountries like investment subsidies, agricultural input subsidiesavailable to low-income or resource-poor farmers and measuresto encourage diversification from growing illicit narcotic crops.
5. South Asian Association Regional Cooperation (SAARC):The SAARC, is an economic and political organization of eight countries in southern Asia. In terms of population, its sphere of influence is thelargest of any regional organization: almost 1.5 billion combinedpopulation of its member states. It was established on December 8,1985 by India, Pakistan, Bangladesh, Sri Lanka, Nepal, Maldives andBhutan. In April 2007, Afghanistan became its eighth member.
It is headquartered at Kathmandu (Nepal).
Objective of SAARC:
* Promote the welfare of the peoples of South Asia and improve their quality of life;
* Accelerate economic growth, social progress and cultural developmentin the region by providing all individuals the opportunity to live indignity and realize their full potential;
* Promote and strengthen collective self-reliance among the countriesof South Asia;
* Contribute to mutual trust, understanding and appreciation of oneanothers problems;
* Promote active collaboration and mutual assistance in the economic, social, cultural, technical and scientific fields;
* Strengthen co-operation with other developing countries;
* strengthen co-operation among themselves in international forumson matters of common interest; and
* Co-operate with international and regional organizations with similaraims and purposes.
SAARC Preferential Trade Agreement (SAPTA):
The 6th summit of SAARC finished at Colombo in 1991. Member nations established one action group for doing trade agreement between themselves. According to this group, SAARC countries did an agreement for specific reduction of tariff on December 7, 1993, this agreement is known as SAPTA. This agreement signed in Delhi during 8th summit of SAARC. It came in to force on December 7, 1995. SAARC countries completed 4 round under this agreement.
It (SAPTA) concretizes the first step towards creation of a trade bloc in the South Asian Region.Under the SAPTA mechanism, the SAARC countries, to begin with, haveidentified 226 items for exchange on tariff concessions ranging from10 percent to 100 percent. Member nation may change tariff step by step but, it caninclude all items gradually.India has agreed to extend tariff concessions on 106 items.
SAARC Free Trade Agreement (SAFTA):
This historic agreement signed at Islamabad during 12th SAARC summit (January 2 to 4, 2004)by member countries. The decision was taken to create free trade area in South Asia according to this agreement. It came into force on January 1, 2006. And SAPTA is replaced by SAFTA.
Difference between SAPTA and SAFTA: Member countries accepted to give some concession to each other under SAPTA. While, they decided to destroy all barriers of trade and tariff under SAFTA. There is expectation of common market and common currency in South Asia under SAFTA in future.
Features of SAFTA:
* Member nations agreed to reduce tariff to 0-5% by 2016.
* Any member can leave this agreement at any time.
* List of sensitive items about trade will be available.
* If tariff on some item will not reduce, such items will be reviewed.
* Comparatively developed countries (India, Pakistan, and Sri Lanka) will give compensation to less developed countries for reduction of revenue.
6. Asian Development Bank:
The Asian Development Bank (ADB), with an international partnership of 63 countries, was established in 1966 and has headquartered at Manila (Philippines). Bank started its work on January 1, 1967. India is founding member of ADB. The chairman of ADB is always from Japan.
Total members: 67 countries (48 are from Asia-Pacific region and 19 are non-Asian)
The principal Function of ADB:
* to make loans and equity investment for the economic and social advancement of its developing member countries:
* to provide technical assistance for the preparation and execution of development project and programmes and advisory services:
* to respond to the request for assistance in coordinating development policies and plans in developing member countries;
7. United Nations Conference on Trade and Development (UNCTAD):
Owing to the persistent insistence of the developing countries for setting up the ITO, which move was continually opposed by the US, the United Nations (UN) appointed a committee in 1963 to resolve the issue. The committee recommended the alternative of setting up a United Nations Conference on Trade and Development (UNCTAD). The UNCTAD was thus set up in 1964. It is specialized and permanent institute of UN for regulate investment and development. Its membership is completely voluntarily. It is headquartered at Geneva.
Its principal functions outlined as follows:
* promote international trade with a view to accelerate economic development;
* formulate principles and policies on international trade and relatedproblems of economic development;
* assist developing countries in the negotiations in the international fora and facilitate market access for the goods of developing countries andencourage technology transfer to them;
* assist developing countries to improve their terms of trade vis--visthe developed countries;
* negotiate multilateral trade agreements; and
* make proposals for putting its principles and policies into effect.
9. OECD
* The Organization for Economic Co-operation and Development (OECD) celebrated its 50th anniversary, but its roots go back to the rubble of Europe after World War II. Determined to avoid the mistakes of their predecessors in the wake of World War I, European leaders realized that the best way to ensure lasting peace was to encourage co-operation and reconstruction, rather than punish the defeated.
* The Organization for European Economic Cooperation (OEEC) was established in 1948 to run the US-financed Marshall Plan (George Catlett Marshall was finance minister of USA then) for reconstruction of a continent ravaged by war. By making individual governments recognize the interdependence of their economies, it paved the way for a new era of cooperation that was to change the face of Europe. Encouraged by its success and the prospect of carrying its work forward on a global stage, Canada and the US joined OEEC members in signing the new OECD Convention on 14 December 1960. The Organization for Economic Co-operation and Development (OECD) was officially born on 30 September 1961, when the Convention entered into force.
* Other countries joined in, starting with Japan in 1964. Today, 34 OECD member countries worldwide regularly turn to one another to identify problems, discuss and analyze them, and promote policies to solve them.
* The mission of the Organization for Economic Co-operation and Development (OECD) is to promote policies that will improve the economic and social well-being of people around the world.
Main working Areas of OECD:
* First and foremost, governments need to restore confidence in markets and the institutions and companies that make them function. That will require improved regulation and more effective governance at all levels of political and business life.
* Secondly, governments must re-establish healthy public finances as a basis for future sustainable economic growth.
* In parallel, we are looking for ways to foster and support new sources of growth through innovation, environmentally friendly green growth strategies and the development of emerging economies.
* Finally, to underpin innovation and growth, we need to ensure that people of all ages can develop the skills to work productively and satisfyingly in the jobs of tomorrow.
* Headquarters Paris.
By -Dashrath Hembade
References:
1. http://www.oecd.org
2. http://unctad.org
3. http://www.worldbank.org/
4. http://www.wto.org/
5. www.saarc-sec.org/
6. http://www.imf.org/external/index.htm
7. IGNOU-Indian Economic Development_Issues and Perspectives unit 22 and 23.
8. Indian Economy by Ramesh Singh.
* In the wake of the unprecedented destruction caused to the global economic structure by the Second World War, and the accompanying instabilities and uncertainties that arose in the economies world over, a group of nations met at Bretton-woods for a conference in 1944.
* Their principal objective was to prepare a framework for economic cooperation and co-ordination between sovereign nations having the right to pursue independent policies. The Bretton-woods conference, as it has since come to be known as, addressed itself to three broad issues of interest in international economic relations, viz. (i) trade in goods, (ii)Flow of capital for development, and (iii) stability of exchange rates andprovision for assistance to members who get confronted with shorttermimbalance in their balance of payments.
* In seeking to find a solutionto the problems arising out of these, the Bretton-woods conferencereached an agreement to set up three multilateral institutions, viz. International Monetary Fund, (b) International Bank for Reconstruction and Development (IBRD), and (c) International Trade Organization (ITO).
* The two institutions, IMF and the IBRD(is part of World Bank today) which were set up and started functioning since 1946 came to be identified as Bretton-woods twins.
* The agreement relating to the setting up of the ITO was not ratified bythe US and hence the ITO could not be established. Instead, the US, UKand a few other countries, set up in 1947 an interim organization calledGeneral Agreement on Tariffs and Trade (GATT discussed later in this article).
2. International Monetary Fund:
* The International Monetary Fund(IMF) came in to force on the December 27, 1945. The main functions of the IMF as given below:
1. To facilitate international monetary cooperation;
2. To promote exchange rate stability and orderly exchange arrangements;
3. To assist in the establishment of a multilateral system payment and the elimination of foreign exchange restriction ; and
4. To assist member countries by temporarily providing financial resources to correct maladjustment of their balance of payment (BoP).
* The Board of Governors of the IMF consists of one Governor and one Alternate Governor from each member country. For India, Finance Minister is the Ex-officio Governor While the RBI governor is the Alternate Governor on the Board.
* The day-to-day management of the IMF is carried out by the Managing Director who is Chairman (currently, Ms. Christine Lagarde) of the Board of Executive Directors. Board of Executive Directors consists of 24 directors appointed / elected by member countries/group of countries is the executive body of the IMF. India is represented at the IMF by an Executive Director (currently ArvindVirmani), who also represent three other countries in Indias constituency Bangladesh, Sri Lanka, and Bhutan.
2. World Bank:
The World Bank group today consist of five closely associated institutions propitiating the role of development in member nations in in different areas. A brief account as follows:
1. IBRD
The International Bank for Reconstruction and Development is the oldest of the the World Bank institutions which started functioning (1945) in the area of reconstruction of the war-ravaged regions (WW2) and later for the development of the middle-income and creditworthy poorer economies of the world. Human development was the main focus of the developmental lending with a very low interest rate (1.55 % per annum) the areas of focus being agriculture, irrigation, urban development, healthcare etc. It commenced lending for India in 1949.
1. IDA
The International Development Agency which is also known as the soft window of the WB was set up in 1960 with the basic aim of developing infrastructural support among the member nations, long term lending for the development of economic services.
1. IFC
The International Finance Corporationwas set up in 1956 which is also known as private arm of WB. It lends money to the private sector companies of its member nations. The interest rate charged is commercial but comparatively low.
1. MIGA
The Multilateral Investment Guarantee Agency, set up in1988 encourages foreign investment in developing economies by offering insurance (guarantee) to foreign private investor against loss caused by non-commercial (i.e. political) risk , such as currency transfer, expropriation, war and civil disturbance.
1. ICID
The International Centre for Settlement of Investment Dispute, set up in 1966 is an investment settlement body whose decision is binding on the parties.
3. General Agreement on Tariff and Trade(GATT):
* 23 nations did an agreement at Geneva on October 23, 1947 for decrease tax on import trade.
* This agreement is known as GATT.
* This agreement came in force on January 1, 1948.
* GATT washeadquartered at Geneva.
* But GATT was temporary arragment.
Objective of GATT:
1. Expansion of international trade;
2. Increase of world production by ensuring full employment in the participating nations;
3. Development and full utilisation of world resources; and
4. Raising standard of living of the world community as a whole.
4. WTO:
* The WTO was born out of negotiations, and everything the WTO does is the result of negotiations. The bulk of the WTOs current work comes from the 198694 negotiations called the Uruguay Round and earlier negotiations under the General Agreement on Tariffs and Trade (GATT).
* It established on January 1, 1995. It replaced GATT and it is permanent organization. But is not specialized organization UN.
* Headquarter : Geneva
Objective of WTO:
1. to set and enforce rules for international trade,
2. to provide a forum for negotiating and monitoring further trade liberalization,
3. to resolve trade disputes,
4. to increase the transparency of decision-making processes,
5. to cooperate with other major international economic institutions involved in global economic management, and
6. to help developing countries benefit fully from the global trading system.
Rounds of GATT negotiations:
The meeting of GATT conducted between 1947 to 1993 is called Rounds. The 8 rounds completed under the GATT. First six rounds were about to reduce the tariff. 7th round was about tariff and other barriers and 8th round was different from earlier rounds. This was started at Punta del Este city of Uruguay. Everything was discussed during this round i.e. from item thing to aircraft, bank to telecommunication, medicines to textile. But, member nations were not agreed- therefore no agreement. Therefore the Director General of GATT then Arthur Dunkel made a broad proposal. This proposal is called Dunkel Proposal. This proposal transformed into final agreement on December 15, 1993. 124 countries including India signed this proposal. GATT came to end on December 12, 1995.
Function of WTO:
Administering WTO trade agreements
Forum for trade negotiations
Handling trade disputes
Monitoring national trade policies
Technical assistance and training for developing countries
Cooperation with other international organizations.
Structure of WTO:
The WTO secretariat is headed by a Director General with a three-tier system of decision making. The decisions are made at three levels: (i) Ministerial Conference, (ii) General Council and other councils, and(iii) Heads of Delegations.
Ministerial conferences of WTO:The ministerial conference of WTO is the highest decision making body of WTO. It meets once in two years. The Finance minister of every member nation participates in it.
The General Council of the WTO, togetherwith the other councils for Trade in Goods, Trade in Services andIntellectual Property, performs the WTO functions. These councils areresponsible for overseeing the implementation of the WTO agreementsin their respective areas of specialization.
The third-tier of decision-making, at the Heads of Delegation level, is most effective in overcoming inherent impediments for reachingconsensus on a trade-related issue.
The current Director-General of the WTO is Roberto Azevdo.
Ministerial Conferences of WTO:
1st ministerial conferences at Singapore: 1996 December 9 to 13. This conference created controversy between developed and developing countries. There were two controversial issue in this conference: (1) Social clause. (2) Singapore issue.
1. Social clause: according to USA there is more child labour in developing countries (including India). There might be tariff on import in USA from developing countries, as long as they solve problem child labour. For this USA referred article of GATT. Developing countries opposed vigorously for this.
2. Singapore issue: this conference discussed four issue , this known as Singapore issue. These are Investment, Competition, Collection by government, and straitening the trade
2nd conference at Geneva: 1998 -18 to 20 May. It discussed Uruguay round and Singapore issue.
3rd conference at Seattle: 1999 November 30 to December 3. There was much protest during this conference. The view of protesters was that WTO will effect badly on human development and environment.
4thconference at Doha: 2001 November 9 to 14. This round has been temporarily named as the Doha Development Round. This round beganin January 2002 and was expected to end by January 1, 2007. It has,however, not concluded till today.The Doha round of trade negotiations mandated negotiations onagriculture, industrial products, services, intellectual property, WTO rules,trade and environment. The negotiations at WTO reached a dead-end inJuly 2006 and were temporarily suspended. Since then, some attemptshave been made to revive them, but these have not been successful.
5th conference at Cancun: 2003 September 10 to 14. There was much protest against Globalization in this conference. The controversy created between developed and developing countries about Agreement on Agriculture (discussed late in this article) and Singapore issue. Unity between developing countries was an important incidence inthis conference. Developing countries created a group under the leadership of Brazil (called G-20) for put points of Agreement on Agriculture on table. Another group also created under the leadership of Malaysia for cross out Singapore issue.
6th conferences at Hon Kong: 2005 December 13 to 18. Decision taken for complete Doha round by 2006. Decision taken to end subsidy on agricultural exportation of developed countries. Decision taken to end the subsidy on cotton exportation of developed countries.
7th conference at Geneva: 2009 November 30 to December 2. The result of Doha did not come.
8th conference at Geneva: 2011 December 15 to 17. Decision take to give a membership for Russia, Samoa, Montenegro and Vanuatu. Three issue discussed trade and development, importance of multiparty trade, and Doha Development Agenda.
9th conference at Bali: 2013 December 3 to 6.
Important points:
Agreement on anti-dumping (ADA):
The objective of this agreement is to provide the right to the contractingparties to applyanti-dumping measures. These are measures againstimports of a product if such imports cause injury to a domestic industryin the territory of the contracting party.The ADA allows member-nations to apply anti-dumping measures on aunilateral basis after elaborate investigations. The anti-dumpinginvestigation determines whether:
* an imported product has been dumped;
* it has caused material injury to the domestic industry of a like product;
* there is a causal link between dumped imports and the injury.
If the investigations establish these three factors, the government is allowed to levy anti-dumping duty on imports. This duty could be levied on imports either from a specific country or a group of countries.
Agreement on Agriculture (AOA):
Agreement on Agriculture (AOA):
The approach adopted here is to encourage gradual reduction of trade distorting subsidies. The AOA specifically deals with: (i) providing market access, (ii) containing of export subsidies, and (iii) regulatingdomestic support.
1).Market Access:
The AOA requires tariffication of all NTBs, and a reduction of those tariffs by an average of 36 percent for developed countries and 24 percent for UDCs. Developed countries were given 6 years to bring about these reductions, while developing countriesare given 10 years. The time counting has begun from 1995.
2). Export Subsidies:
Export subsidies have to be reduced by 36 percent in budgetary terms and 21 percent in volume over a six-year period. The developing countries have been given lower reduction targets of 24 and 14 percent respectively over a longer period of 10 years.
3). Domestic support:
A distinction has been made between subsidies that did not distort trade and those that do. Only the trade distortingsubsidies have to be reduced, if they are above the permissible level.The following have been exempted from this provision.
* Green Box: Subsidies with no, or minimally trade distorting, effecthave been put in this box. These are not subject to any reductioncommitments. It includes all government service programmes.
* Blue box: It contains those subsidies whose continuation is subject to a limitation on production.
* Whit box: It includes such subsidy practices in developingcountries like investment subsidies, agricultural input subsidiesavailable to low-income or resource-poor farmers and measuresto encourage diversification from growing illicit narcotic crops.
5. South Asian Association Regional Cooperation (SAARC):The SAARC, is an economic and political organization of eight countries in southern Asia. In terms of population, its sphere of influence is thelargest of any regional organization: almost 1.5 billion combinedpopulation of its member states. It was established on December 8,1985 by India, Pakistan, Bangladesh, Sri Lanka, Nepal, Maldives andBhutan. In April 2007, Afghanistan became its eighth member.
It is headquartered at Kathmandu (Nepal).
Objective of SAARC:
* Promote the welfare of the peoples of South Asia and improve their quality of life;
* Accelerate economic growth, social progress and cultural developmentin the region by providing all individuals the opportunity to live indignity and realize their full potential;
* Promote and strengthen collective self-reliance among the countriesof South Asia;
* Contribute to mutual trust, understanding and appreciation of oneanothers problems;
* Promote active collaboration and mutual assistance in the economic, social, cultural, technical and scientific fields;
* Strengthen co-operation with other developing countries;
* strengthen co-operation among themselves in international forumson matters of common interest; and
* Co-operate with international and regional organizations with similaraims and purposes.
SAARC Preferential Trade Agreement (SAPTA):
The 6th summit of SAARC finished at Colombo in 1991. Member nations established one action group for doing trade agreement between themselves. According to this group, SAARC countries did an agreement for specific reduction of tariff on December 7, 1993, this agreement is known as SAPTA. This agreement signed in Delhi during 8th summit of SAARC. It came in to force on December 7, 1995. SAARC countries completed 4 round under this agreement.
It (SAPTA) concretizes the first step towards creation of a trade bloc in the South Asian Region.Under the SAPTA mechanism, the SAARC countries, to begin with, haveidentified 226 items for exchange on tariff concessions ranging from10 percent to 100 percent. Member nation may change tariff step by step but, it caninclude all items gradually.India has agreed to extend tariff concessions on 106 items.
SAARC Free Trade Agreement (SAFTA):
This historic agreement signed at Islamabad during 12th SAARC summit (January 2 to 4, 2004)by member countries. The decision was taken to create free trade area in South Asia according to this agreement. It came into force on January 1, 2006. And SAPTA is replaced by SAFTA.
Difference between SAPTA and SAFTA: Member countries accepted to give some concession to each other under SAPTA. While, they decided to destroy all barriers of trade and tariff under SAFTA. There is expectation of common market and common currency in South Asia under SAFTA in future.
Features of SAFTA:
* Member nations agreed to reduce tariff to 0-5% by 2016.
* Any member can leave this agreement at any time.
* List of sensitive items about trade will be available.
* If tariff on some item will not reduce, such items will be reviewed.
* Comparatively developed countries (India, Pakistan, and Sri Lanka) will give compensation to less developed countries for reduction of revenue.
6. Asian Development Bank:
The Asian Development Bank (ADB), with an international partnership of 63 countries, was established in 1966 and has headquartered at Manila (Philippines). Bank started its work on January 1, 1967. India is founding member of ADB. The chairman of ADB is always from Japan.
Total members: 67 countries (48 are from Asia-Pacific region and 19 are non-Asian)
The principal Function of ADB:
* to make loans and equity investment for the economic and social advancement of its developing member countries:
* to provide technical assistance for the preparation and execution of development project and programmes and advisory services:
* to respond to the request for assistance in coordinating development policies and plans in developing member countries;
7. United Nations Conference on Trade and Development (UNCTAD):
Owing to the persistent insistence of the developing countries for setting up the ITO, which move was continually opposed by the US, the United Nations (UN) appointed a committee in 1963 to resolve the issue. The committee recommended the alternative of setting up a United Nations Conference on Trade and Development (UNCTAD). The UNCTAD was thus set up in 1964. It is specialized and permanent institute of UN for regulate investment and development. Its membership is completely voluntarily. It is headquartered at Geneva.
Its principal functions outlined as follows:
* promote international trade with a view to accelerate economic development;
* formulate principles and policies on international trade and relatedproblems of economic development;
* assist developing countries in the negotiations in the international fora and facilitate market access for the goods of developing countries andencourage technology transfer to them;
* assist developing countries to improve their terms of trade vis--visthe developed countries;
* negotiate multilateral trade agreements; and
* make proposals for putting its principles and policies into effect.
9. OECD
* The Organization for Economic Co-operation and Development (OECD) celebrated its 50th anniversary, but its roots go back to the rubble of Europe after World War II. Determined to avoid the mistakes of their predecessors in the wake of World War I, European leaders realized that the best way to ensure lasting peace was to encourage co-operation and reconstruction, rather than punish the defeated.
* The Organization for European Economic Cooperation (OEEC) was established in 1948 to run the US-financed Marshall Plan (George Catlett Marshall was finance minister of USA then) for reconstruction of a continent ravaged by war. By making individual governments recognize the interdependence of their economies, it paved the way for a new era of cooperation that was to change the face of Europe. Encouraged by its success and the prospect of carrying its work forward on a global stage, Canada and the US joined OEEC members in signing the new OECD Convention on 14 December 1960. The Organization for Economic Co-operation and Development (OECD) was officially born on 30 September 1961, when the Convention entered into force.
* Other countries joined in, starting with Japan in 1964. Today, 34 OECD member countries worldwide regularly turn to one another to identify problems, discuss and analyze them, and promote policies to solve them.
* The mission of the Organization for Economic Co-operation and Development (OECD) is to promote policies that will improve the economic and social well-being of people around the world.
Main working Areas of OECD:
* First and foremost, governments need to restore confidence in markets and the institutions and companies that make them function. That will require improved regulation and more effective governance at all levels of political and business life.
* Secondly, governments must re-establish healthy public finances as a basis for future sustainable economic growth.
* In parallel, we are looking for ways to foster and support new sources of growth through innovation, environmentally friendly green growth strategies and the development of emerging economies.
* Finally, to underpin innovation and growth, we need to ensure that people of all ages can develop the skills to work productively and satisfyingly in the jobs of tomorrow.
* Headquarters Paris.
By -Dashrath Hembade
References:
1. http://www.oecd.org
2. http://unctad.org
3. http://www.worldbank.org/
4. http://www.wto.org/
5. www.saarc-sec.org/
6. http://www.imf.org/external/index.htm
7. IGNOU-Indian Economic Development_Issues and Perspectives unit 22 and 23.
8. Indian Economy by Ramesh Singh.
Intellectual Property Rights(IP) Are the really Intellectual ??
Prologue
1. Introduction
2. Patent
3. Bio-Piracy
4. Breast Cancer (Mastec-tomy)/ Case of Hollywood Actress Angelina Jolie
5. Myrid Genetics
6. Case Myriad Genetics vs Association of Molecular Pathology
7. Novartis vs Supreme Court of India (Land Mark Judgement by Supreme Court)
8. Bayer Cancer Drug
9. What is TRIPS
Introduction
* Intellectual property rights are the rights given to persons over the creations of their minds. They usually give the creator an exclusive right over the use of his/her creation for a certain period of time.
* IP are divided into 2 main areas
1. Industrial property, which includes inventions (patents), trademarks, industrial designs, and geographic indications of source;
2. and Copyright, which includes literary and artistic works such as novels, poems and plays, films, musical works, artistic works such as drawings, paintings, photographs and sculptures, and architectural designs. Rights related to copyright include those of performing artists in their performances, producers of phonograms in their recordings, and those of broadcasters in their radio and television programs
Patent
* It is an exclusive right granted for an invention, which is a product or a process that provides, in general a new way of doing something that offers a new technical solution to a problem.
* A patent provides protection for the invention to the owner of a patent which is granted for a limited of 20 years. Patent protection means that invention cannot be commercially, made, used, distributed or sold with the patent owners concern.
Gene Patent
* It is a patent on a specific isolated gene sequence, its chemical composition, the process for obtaining or using it or combination of such claims.
Geographical Indications
* A geographical indication is a sign used on goods that have a specific geographical origin and possess qualities, reputation or characteristics that are essentially attributable to that place of origin.
* Most commonly, a geographical indication includes the name of the place of origin of the goods. Agricultural products typically have qualities that derive from their place of production and are influenced by specific local factors, such as climate and soil. Whether a sign is recognized as a geographical indication is a matter of national law.
* An appellation of origin is a special kind of geographical indication. It generally consists of a geographical name or a traditional designation used on products which have a specific quality or characteristics that are essentially due to the geographical environment in which they are produced. The concept of a geographical indication encompasses appellations of origin.
E.g Darjeeling Tea, Kullu Shawl of Himachal and Mysore Sandal Soap of Karnataka
Bio-Piracy
* Bio-Piracy is the unauthorized use of the genetic resources & the knowledge associated with genetic resources held by the communities living from Bio-diversity rich countries, which may be infringed upon illegally by industrial enterprises
* Bio-piracy is a part of a larger problem whereby developing countries rich inbiodiversity, are exploited by transnational corporations andindustriesthat make use of these resources.
* Bio-piracy, refers to the appropriation, generally by means ofpatentsof legal rights over biological materials by international companies to develop food or medicines, without recompensing the countries from which they are taken
Breast Cancer
* Breast cancer is a type of cancer originating from breast tissue, most commonly from the inner lining of milk ducts or the lobules that supply the ducts with milk.
* Breast cancer occurs in humans (men also) and other mammals. A distinct sequence of nucleotide forming part of a chromosome is known as gene. Protein controls structure & function of all the cells that make up the body.
* The complete DNA instruction book or GNOME for humans contain 3 billion bases & about 20,000 genes on 23 pair of chromosomes. And abnormalities in the DNA or abnormal changes may provide wrong set of instructions leading to faulty cell growth and function.
* Most inherited( mostly from parents) cases of Breast cancer are associated with 2 abnormal genes BRC -A1 & BRC-A2 (BR=BREAST & C=CANCER)
* Function of BRC-A genes is to repair cell damage & keep the breast cells growing normally, but when these genes contain abnormality or mutation(The changing of the structure of a gene, resulting in a variant form that may be transmitted to subsequent generations) these genes do not function normally & breast cancer risk increases
Mastectomy ( Greek word: breast + removal )
* A mastectomy is surgery to remove a breast. It is performed either to treat or to prevent breast cancer. Only high-risk patients have surgery to prevent cancer.
* There is a relationship between diet and breast cancer, including an increased risk with a high fat diet, alcohol intake, and obesity. Other risk factors include radiation and shift-work
There are four main types: (Not important)
* Total mastectomy - removal of breast tissue and nipple
* Modified radical mastectomy - removal of the breast, most of the lymph nodes under the arm and often the lining over the chest muscles
* Lumpectomy - surgery to remove the tumor and a small amount of normal tissue around it
* Radical mastectomy - the removal of the breast, lymph nodes and chest muscles. This is no longer common
Case of Angelina Jolie
* Angelina Jolie drew headlines with her announcement that she has undergone a preventative double mastectomy. A blood test revealed that she carries a damaged BRCA1 gene -- a defect that greatly increases the odds of a woman getting breast cancer.
* She had an 87 percent chance of developing the disease, she decided to undergo a prophylactic double mastectomy, an operation that reduced her risk to 5 percent.
* The first issue is the test. The BRCA1 and BRCA2 tests, which may have saved Jolie's life, cost $3,000 to administer (Please note this Its very costly not affordable by everyone.)
Myriad Genetics
* Myriad genetics is a molecular diagnostic company based in salt lake city in U.S.A
* Myriad was having exclusive licensing right in the U.S for breast cancer analysis & testing- this is a molecular diagnostic product used for analysis of BRC-A1 & BRC-A2 to evaluate a womens risk of developing hereditary breast cancer. It helps women to determine if they have BRC-A1 & BRC-A2 gene mutations which will be helpful in determining the preventive & guiding therapy.
* Myriad genetics for its breast cancer risk assessment involving the genes BRC-A1 & BRC-A2 was charging significantly about $3000, those arguing against the patenting of the genes claimed that the high cost of the test was due to the monopoly over it by Myriad genetics, so a case was filed against Myriad genetics in the U.S court
Case Myriad Genetics vs Association of Molecular Pathology
* The Association for Molecular Pathology along with several other medical associations, doctors and patients sued the United States Patent and Trademark Office (USPTO) and Myriad Genetics to challenge several patents related to human genetics. The patents cover the BRCA1 and BRCA2 genes and certain mutations that indicate a high risk of developing breast cancer.
* The suit also challenged several method patents covering diagnostic screening for the genes. They also argued that the patents limit scientific progress. Limits patents to any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof.
* By patenting the genes, Myriad had exclusive control over diagnostic testing and further scientific research for the BRCA genes. Myriad argued that once a gene is isolated, and therefore distinguishable from other genes, it could be patented.
* Holding: A naturally occurring DNA segment is a product of nature and not patent eligible merely because it has been isolated, but synthetic complementary DNA ("cDNA") is patent eligible because it is not naturally occurring.
* Judgment: Affirmed in part and reversed in part., 9-0, in an opinion by Justice Thomas on June 13, 2013. Justice Scalia filed an opinion concurring in part and concurring in the judgment.
* Because of these ruling patients will have greater access to genetic testing & scientists can engage in research on these genes without the fear of being sued.
Novartis vs Supreme Court of India (Land Mark Judgement by Supreme Court)
* Novartis International AG is a Swiss multinational pharmaceutical company based in Basel, Switzerland, ranking number two in sales (46.806 billion US$) among the world-wide industry in 2010.
* It had developed a ground breaking super expensive cancer drug called Gleevac( Novartis Had gained patent protection for this drug in some 40-odd countries) for which it wanted patent rights in India(patent rights are different for different countries)
* Case was filed and Supreme court of India rejected the application which was a landmark judgment
Reasons for Rejection
* Novartis failed to prove the drug was patentable, the drug under review did not demonstrate any significant of efficacy(capability to produce an effect) over available generics & its active ingredient was already known
* This is a pretty common method by Pharmaceutical companies to evergreen patent protection by making minor modifications to drugs approaching Patent expiry ( 20 years . Hope u remember or getting bored??)
* And in this way for many American Pharmaceutical companies it is easy to make market in India (India is huge market. An average man spends around 70% of his income on medicines and health problems)
* Existence of Robust property rights are a key bench mark for development as they reflect institutional strength (via a judiciary)
* India has over 28 lakh cancer patients. Supreme Court judgment can make a way for cancer patients getting cheaper drugs as a 1-month dose of Gleevec costs around Rs 1.2 Lakh and the same generic drugs manufactured by Indian company for the same period is priced at Rs 8000.
Bayer Cancer Drug
* An Indian patent appeals Board upheld a decision to allow a domestic company to sell a generic version of BAYER AG(German chemical and pharmaceutical company) cancer drug NEXAVAR, in blow for global drug makers efforts to hold on to monopolies on high price medicine.
* This ruling was again a landmark as it paves the way for the issue of more so called compulsory licenses as governments particularly in emerging markets such as China & Thailand, battle to bring down health care costs & provide access to affordable drugs to treat diseases such as cancer, HIV-AIDS.
* The Indian Patent Office(IPO) is administered by the Office of the Controller General of Patents, Designs & Trade Marks (CGPDTM). This is a subordinate office of the Indian Government and administers the Indian law of Patents, Designs and Trade Marks
* IPO allowed NATCO Premium Pharma (Indian Company) to sell the generic Nexavar at Rs 8800 or $160 for a months dose but for which Bayer was charging Rs 2,80000(only .. lolz)
* Bayer challenged it & the board did order NATCO Pharma to pay a royalty of 7% on sales of generic Nexaver to Bayer
Indias vision = Kidney & Liver cancer drug should be available at an affordable price to everybody
What is Trips?
* The Agreement on Trade Related Intellectual Property Rights (TRIPS) was negotiated with other international trade agreements during the Uruguay Round trade negotiations of the GATT (General Agreement on Tariffs and Trade) from 1986 to 1994.
* As one of the World Trade Organization (WTO) agreements, it is totally binding for all WTO Member States (whether a previous GATT Member or a new WTO one)
* Taking into account the transitional periods allowed to developing and least-developed countries by the TRIPS Agreement.
* The TRIPS Agreement sets minimum standards in the field of intellectual property (IP) protection (such as copyrights, patents, and trademarks) that all WTO Member countries have to respect.
* To achieve this goal, WTO Members have to modify their intellectual property laws to make them consistent with the new WTO standards.
* For instance, the TRIPS Agreement states that all patents shall be available for at least 20 years from the filing date, whereas before TRIPS the patent term varied greatly among countries (7, 10, 17 or 20 years). All WTO Members have to incorporate this 20-year patent term in their own patent law.
References - The Hindu
www.google.com
www.wipo.int
www.wto.org
Name Arun Chettiar
1. Introduction
2. Patent
3. Bio-Piracy
4. Breast Cancer (Mastec-tomy)/ Case of Hollywood Actress Angelina Jolie
5. Myrid Genetics
6. Case Myriad Genetics vs Association of Molecular Pathology
7. Novartis vs Supreme Court of India (Land Mark Judgement by Supreme Court)
8. Bayer Cancer Drug
9. What is TRIPS
Introduction
* Intellectual property rights are the rights given to persons over the creations of their minds. They usually give the creator an exclusive right over the use of his/her creation for a certain period of time.
* IP are divided into 2 main areas
1. Industrial property, which includes inventions (patents), trademarks, industrial designs, and geographic indications of source;
2. and Copyright, which includes literary and artistic works such as novels, poems and plays, films, musical works, artistic works such as drawings, paintings, photographs and sculptures, and architectural designs. Rights related to copyright include those of performing artists in their performances, producers of phonograms in their recordings, and those of broadcasters in their radio and television programs
Patent
* It is an exclusive right granted for an invention, which is a product or a process that provides, in general a new way of doing something that offers a new technical solution to a problem.
* A patent provides protection for the invention to the owner of a patent which is granted for a limited of 20 years. Patent protection means that invention cannot be commercially, made, used, distributed or sold with the patent owners concern.
Gene Patent
* It is a patent on a specific isolated gene sequence, its chemical composition, the process for obtaining or using it or combination of such claims.
Geographical Indications
* A geographical indication is a sign used on goods that have a specific geographical origin and possess qualities, reputation or characteristics that are essentially attributable to that place of origin.
* Most commonly, a geographical indication includes the name of the place of origin of the goods. Agricultural products typically have qualities that derive from their place of production and are influenced by specific local factors, such as climate and soil. Whether a sign is recognized as a geographical indication is a matter of national law.
* An appellation of origin is a special kind of geographical indication. It generally consists of a geographical name or a traditional designation used on products which have a specific quality or characteristics that are essentially due to the geographical environment in which they are produced. The concept of a geographical indication encompasses appellations of origin.
E.g Darjeeling Tea, Kullu Shawl of Himachal and Mysore Sandal Soap of Karnataka
Bio-Piracy
* Bio-Piracy is the unauthorized use of the genetic resources & the knowledge associated with genetic resources held by the communities living from Bio-diversity rich countries, which may be infringed upon illegally by industrial enterprises
* Bio-piracy is a part of a larger problem whereby developing countries rich inbiodiversity, are exploited by transnational corporations andindustriesthat make use of these resources.
* Bio-piracy, refers to the appropriation, generally by means ofpatentsof legal rights over biological materials by international companies to develop food or medicines, without recompensing the countries from which they are taken
Breast Cancer
* Breast cancer is a type of cancer originating from breast tissue, most commonly from the inner lining of milk ducts or the lobules that supply the ducts with milk.
* Breast cancer occurs in humans (men also) and other mammals. A distinct sequence of nucleotide forming part of a chromosome is known as gene. Protein controls structure & function of all the cells that make up the body.
* The complete DNA instruction book or GNOME for humans contain 3 billion bases & about 20,000 genes on 23 pair of chromosomes. And abnormalities in the DNA or abnormal changes may provide wrong set of instructions leading to faulty cell growth and function.
* Most inherited( mostly from parents) cases of Breast cancer are associated with 2 abnormal genes BRC -A1 & BRC-A2 (BR=BREAST & C=CANCER)
* Function of BRC-A genes is to repair cell damage & keep the breast cells growing normally, but when these genes contain abnormality or mutation(The changing of the structure of a gene, resulting in a variant form that may be transmitted to subsequent generations) these genes do not function normally & breast cancer risk increases
Mastectomy ( Greek word: breast + removal )
* A mastectomy is surgery to remove a breast. It is performed either to treat or to prevent breast cancer. Only high-risk patients have surgery to prevent cancer.
* There is a relationship between diet and breast cancer, including an increased risk with a high fat diet, alcohol intake, and obesity. Other risk factors include radiation and shift-work
There are four main types: (Not important)
* Total mastectomy - removal of breast tissue and nipple
* Modified radical mastectomy - removal of the breast, most of the lymph nodes under the arm and often the lining over the chest muscles
* Lumpectomy - surgery to remove the tumor and a small amount of normal tissue around it
* Radical mastectomy - the removal of the breast, lymph nodes and chest muscles. This is no longer common
Case of Angelina Jolie
* Angelina Jolie drew headlines with her announcement that she has undergone a preventative double mastectomy. A blood test revealed that she carries a damaged BRCA1 gene -- a defect that greatly increases the odds of a woman getting breast cancer.
* She had an 87 percent chance of developing the disease, she decided to undergo a prophylactic double mastectomy, an operation that reduced her risk to 5 percent.
* The first issue is the test. The BRCA1 and BRCA2 tests, which may have saved Jolie's life, cost $3,000 to administer (Please note this Its very costly not affordable by everyone.)
Myriad Genetics
* Myriad genetics is a molecular diagnostic company based in salt lake city in U.S.A
* Myriad was having exclusive licensing right in the U.S for breast cancer analysis & testing- this is a molecular diagnostic product used for analysis of BRC-A1 & BRC-A2 to evaluate a womens risk of developing hereditary breast cancer. It helps women to determine if they have BRC-A1 & BRC-A2 gene mutations which will be helpful in determining the preventive & guiding therapy.
* Myriad genetics for its breast cancer risk assessment involving the genes BRC-A1 & BRC-A2 was charging significantly about $3000, those arguing against the patenting of the genes claimed that the high cost of the test was due to the monopoly over it by Myriad genetics, so a case was filed against Myriad genetics in the U.S court
Case Myriad Genetics vs Association of Molecular Pathology
* The Association for Molecular Pathology along with several other medical associations, doctors and patients sued the United States Patent and Trademark Office (USPTO) and Myriad Genetics to challenge several patents related to human genetics. The patents cover the BRCA1 and BRCA2 genes and certain mutations that indicate a high risk of developing breast cancer.
* The suit also challenged several method patents covering diagnostic screening for the genes. They also argued that the patents limit scientific progress. Limits patents to any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof.
* By patenting the genes, Myriad had exclusive control over diagnostic testing and further scientific research for the BRCA genes. Myriad argued that once a gene is isolated, and therefore distinguishable from other genes, it could be patented.
* Holding: A naturally occurring DNA segment is a product of nature and not patent eligible merely because it has been isolated, but synthetic complementary DNA ("cDNA") is patent eligible because it is not naturally occurring.
* Judgment: Affirmed in part and reversed in part., 9-0, in an opinion by Justice Thomas on June 13, 2013. Justice Scalia filed an opinion concurring in part and concurring in the judgment.
* Because of these ruling patients will have greater access to genetic testing & scientists can engage in research on these genes without the fear of being sued.
Novartis vs Supreme Court of India (Land Mark Judgement by Supreme Court)
* Novartis International AG is a Swiss multinational pharmaceutical company based in Basel, Switzerland, ranking number two in sales (46.806 billion US$) among the world-wide industry in 2010.
* It had developed a ground breaking super expensive cancer drug called Gleevac( Novartis Had gained patent protection for this drug in some 40-odd countries) for which it wanted patent rights in India(patent rights are different for different countries)
* Case was filed and Supreme court of India rejected the application which was a landmark judgment
Reasons for Rejection
* Novartis failed to prove the drug was patentable, the drug under review did not demonstrate any significant of efficacy(capability to produce an effect) over available generics & its active ingredient was already known
* This is a pretty common method by Pharmaceutical companies to evergreen patent protection by making minor modifications to drugs approaching Patent expiry ( 20 years . Hope u remember or getting bored??)
* And in this way for many American Pharmaceutical companies it is easy to make market in India (India is huge market. An average man spends around 70% of his income on medicines and health problems)
* Existence of Robust property rights are a key bench mark for development as they reflect institutional strength (via a judiciary)
* India has over 28 lakh cancer patients. Supreme Court judgment can make a way for cancer patients getting cheaper drugs as a 1-month dose of Gleevec costs around Rs 1.2 Lakh and the same generic drugs manufactured by Indian company for the same period is priced at Rs 8000.
Bayer Cancer Drug
* An Indian patent appeals Board upheld a decision to allow a domestic company to sell a generic version of BAYER AG(German chemical and pharmaceutical company) cancer drug NEXAVAR, in blow for global drug makers efforts to hold on to monopolies on high price medicine.
* This ruling was again a landmark as it paves the way for the issue of more so called compulsory licenses as governments particularly in emerging markets such as China & Thailand, battle to bring down health care costs & provide access to affordable drugs to treat diseases such as cancer, HIV-AIDS.
* The Indian Patent Office(IPO) is administered by the Office of the Controller General of Patents, Designs & Trade Marks (CGPDTM). This is a subordinate office of the Indian Government and administers the Indian law of Patents, Designs and Trade Marks
* IPO allowed NATCO Premium Pharma (Indian Company) to sell the generic Nexavar at Rs 8800 or $160 for a months dose but for which Bayer was charging Rs 2,80000(only .. lolz)
* Bayer challenged it & the board did order NATCO Pharma to pay a royalty of 7% on sales of generic Nexaver to Bayer
Indias vision = Kidney & Liver cancer drug should be available at an affordable price to everybody
What is Trips?
* The Agreement on Trade Related Intellectual Property Rights (TRIPS) was negotiated with other international trade agreements during the Uruguay Round trade negotiations of the GATT (General Agreement on Tariffs and Trade) from 1986 to 1994.
* As one of the World Trade Organization (WTO) agreements, it is totally binding for all WTO Member States (whether a previous GATT Member or a new WTO one)
* Taking into account the transitional periods allowed to developing and least-developed countries by the TRIPS Agreement.
* The TRIPS Agreement sets minimum standards in the field of intellectual property (IP) protection (such as copyrights, patents, and trademarks) that all WTO Member countries have to respect.
* To achieve this goal, WTO Members have to modify their intellectual property laws to make them consistent with the new WTO standards.
* For instance, the TRIPS Agreement states that all patents shall be available for at least 20 years from the filing date, whereas before TRIPS the patent term varied greatly among countries (7, 10, 17 or 20 years). All WTO Members have to incorporate this 20-year patent term in their own patent law.
References - The Hindu
www.google.com
www.wipo.int
www.wto.org
Name Arun Chettiar
India US Relations, HFCs,Westinghouse Deal, Nuclear Liability, GETTNP
* Firstly, India US relations is such a clichd topic and there are so many topics that one can just remember from just reading from the newspaper.
* This article aims at giving some of the nitty-gritties, so that some critical fodder points and the 2/5 markers can also be addressed. For a PhD type article on India US relations visit link number 1 in Bibiography.
* Also, if one looks into the press releases, it is all diplomatic jibber-jabber. For an experienced notes-maker/aspirant/serious player this is usually just crap.
* One must learn to selectively identify and analyse various issues and topics.
The recently concluded Manmohan Singhs trip to the US and other recent current affairs, has a lot of issues that are relevant for GS mains from the point of environment, science and technology, location of industries, diaspora,etc:
Topic in GSIndo US Relations
EnvironmentHydro Fluoro Carbons
Sci-TechHFCs, Defence Deals, Rotavac
IndustryWestinghouse Deal
DiasporaImmigration Bill and Recent Fee hike, ,Global Entry Trusted Traveler Network Programme
Effect of policies and politics of developed and developing countries on Indias interests.WTO appeal
Bilateral, regional and global groupings and agreements involving India and/or affecting Indias interests.India in WTO, UN, etc
Government policies and interventions for development in various sectors and issues arising out of their design and implementation.The Civil Nuclear Liability
Let us look at each of these issues:
Environment: Hydro Fluoro Carbons(HFCs)
* HFCs are organic compunds that contain Hydrogen, Fluorine, Carbon.
* Some of the common HFCs are CH2F2, R134a, etc. (No need to mug up these)
* They are used as refrigerants in cars, Air-conditioning units, etc.
* They are currently seen as threat to the environment and nations want to move out of using the chemical.
Rewind to the NCERT Chemistry textbook Chloro Fluoro Carbons(CFCs) were seen as the major threat to the environment. Then what is the difference between CFC and HFC?
CFCHFC
Chloro Fluoro CarbonHydro Fluoro Carbon
It is a dangerous gas that releases free radicals into the ozone layer. These free radicals are responsible for the decomposition of ozone layer and the ozone hole.These were introduced to substitute CFCs in the refrigeration units. But they are Super Greenhouse Gases. This means they are more dangerous than the ordinary Greenhouse gases like carbon dioxide, methane,etc
Primary Villain causing: Ozone HolePrimary Villain to: Global Warming
Included in the Montreal ProtocolNot present in the Montreal Protocol. In recent Bangkok meet, resolved to look into the issue of inclusion of HFC in Montreal Protocol.
Everything seems good. Then what is Indias problem?
* The technology to use HFCs is not yet present in India.
* We have just now migrated from CFCs to HFCs a few decades back. There is not enough R&D and resource to shift towards new technology.
* Just like in all matters, the US is the leader in R&D. So they have all the technology and the efficient corporate houses that fund such ventures.
* Hence, they lobby their government to include sale of that technology to developing nations like India.
* But there is nothing in life called as a free lunch.
Reasons against this technology:
1. It is not yet fully tested in US itself. Hence, it might be just using the developing nations for experiment purposes.
2. The technology is not cheap. Hence, it is a risky investment.
3. These companies have been lobbying US government to include restrictions to usage of HFCs by developing world, citing environmental concerns. Hence, countries like India might be forced to adopt the technology.
Against the backdrop of these issues, the recent meet had this decision that,
1. A India-US Task Force will be setup to discuss on the phasing out of HFCs
2. Also to discuss about inclusion of HFCs in Montreal Protocol, the scope of the United Nations Framework Convention on Climate Change (UNFCCC) and its Kyoto Protocol for accounting and reporting of emissions.
Defence Deals:
Whenever our PM goes to US, Russia, etc there will always be a defence deal. So in this meet our PM had some agreements too. This is not really worthy of anyones time but there just for some fodder material:
* India will participate in the Rim of the Pacific (RIMPAC) naval exercise hosted by U.S. Pacific Command in 2014.
* Also, a little bit from the history of this meet: US has proposed joint development of Javelin anti-tank missiles with India.
* Till now India has a successful co-development project only with Russia for the BrahMos cruise missile, and with Israel for the long-range surface-to-air missile (LR-SAM) and medium-range surface-to-air missile (MR-SAM).
Science and Technology Initiatives:
* ROTOVAC Vaccine
* Rotavirus is a virus that generally affects infants.
* It leads to severe diarrhea and each year, rotavirus-induced diarrheal disease kills roughly 435,000 children younger than five-years-old and hospitalises an estimated two million children worldwide, largely in developing countries.
* ROTOVAC Virus is an indigenously developed vaccing through PPP between the Indian governments Department of Biotechnology (DBT) and pharma company Bharat Biotech along with the help of US institutions and government.
* The vaccine has concluded its Phase III trials and has got approval from Drug Controller General of India (DCGI).
* The vaccine is expected to be launched in the market for sale by next year.
* Once licensed by the Drugs Controller General of India (DCGI), the vaccine will cost around Rs.54 per dose compared to the currently available vaccine which costs Rs.2,250 per dose.
* Apparently the Chairman of Bharat Biotech had made a promise to Gates Foundation to develop and supply a novel rotavirus vaccine at US$ 1 per dose.
* PACE
* It is the short form for India US Partnership to Advance Clean Energy .
* Though this was signed way back in 2009, various initiatives under this MoU was launched this year and a lot of fodder points for CleanTech per se.
* The various initiatives undertaken till now with respect to PACE are:
* Clean Energy Finance
* Substantial R&D support for Solar,Wind, Biofuels ,etc.
* Energy Efficiency in Buildings
* Not only research but deployment of technology in key areas including Power, Railways, etc.
* Development of Smart Grids Feasibility tests done in Bangalore, Delhi, Kolkata.
* Support to develop Nalanda University campus into net zero (energy, water and waste) campus in Rajghir, Bihar.
* Development of Shale Gas Resoures.
* Thirty Meter Telescope(TMT)
* This is also a long term current affair in the sense that the construction of this telescope will take so much time it will always be in current affairs. Like Kudankulam Nuclear Plant.
* But 2013 is important year since the Master Partnership Agreement between the 5 main nations US, Canada, India, Japan, China was signed in July 2013.
* India was till then only an observer in the TMT Collaborative Board. Now it is a full-fledged member.
* The 30m in the name of the telescope is due to the aperture size of the telescope which is the largest of all current telescopes.
* India, Japan, China will provide technical and financial assistance whereas the main promoters are Caltech and the University of California in the U.S. and the Association of Canadian Universities for Research in Astronomy (ACURA).
Health
Though one can quote the whole 4th India-US Strategic dialogue, it would be an overkill of information. I am just mentioning one of the new non-conventional, interesting fact from the dialogue.
* Epidemic Intelligence Service
* No no. This is not NSAs surveillance program.
* This is a specially recruited and trained batch of healthcare professionals who are used to identify epidemics quickly.
* Doctors are trained by the Centre for Disease Control(CDC), USA and later placed in public health programmes or state health programs.
* The EIS is modelled on the Service of the same name in US, which is operational from 1951.
* The first batch of trained personnel will graduate in 2014.
* Also a Global Disease Detection-India Centre has been established to sync with the global health community and use the services of the EIS in the future.
Westinghouse and Nuclear Reactors
Does anyone remember the Indo-US Nuclear Deal that was signed in 2008? This new agreement is related to that 2008 deal.
* WH had got approval from US regulator for its AP1000 nuclear reactor in 2012.
* It has an operational life of about 60 years. Nuclear power plants are given operational license for 40 years.
* After the approval from US regulator, Nuclear Power Corporation of India Limited(NPCIL) had talks with WH to setup the plant in Mithivirdi site in Bhavnagar district in Gujarat.
* The plant is planned to be of 6000 MW capacity with 6 AP1000 reactors and implemented phase-wise.
* A Preliminary pact had already been signed in 2012 when Hillary Clinton had visited India.
* This Pre-Early Works agreement will cover environmental impact studies, licensing issues, cost of building the reactors, and training and research among others.
* States to benefit from the plant are Gujarat, Maharashtra, MP, Rajasthan and Chhattisgarh.
What are the issues?
* Till now, there has been no AP1000 reactor that is operational. Investing such a huge amount of money on an untested reactor can seem dangerous.
* Combined with this, the government is planning to suggest waiver of the liability in case of disaster.
* This is by the right to recourse provision in the Nuclear Liability Act is even more worrisome.
There are some major issues with the Nuclear Liability Act in the first place:
* The affected persons cannot directly file a law suit claiming damages against the manufacturer.
* Such provisions called as Class Actions Suits are generally very costly. When combined with the huge number of affected persons, it can get very costly.
* The total liability of WH towards NPCIL (the operator of the plant) would be 1500 crores. This is paltry sum considering the damage that can be caused. Fukushima had to cough up much more than that, just to clean up.
* The time limit upto which the liability is valid is only 10 years for property damage. Any long term infrastructure shows defects in its mid-life period and not at the start. Since, the license itself is given for 40 years, it should have been more.
* Also, there are rumours that the right to recourse is planned to waived for GH.
Right to Recourse:
So let us understand what this right to recourse is:
* NPCIL being the operator of the plant, is the actual entity that is being bound by the Civil Liability for Nuclear damage Act.
* So, NPCIL will pay the liability amount in case of accidents.
* But when the accident in the plant is caused due to some fault of the supplier of the plant (namely in this case WH), then NPCIL can charge WH for the damage.
* This is called as a right to recourse the liability onto the supplier.
* This provision can be waived by the supplier (GH) if it signs a contract with the operator (NPCIL) saying so.
All these issues are not even taking into factor:
1. The land acquisition issues regarding the power plant.
2. Local population protests against the project.
3. The environment activists protesting citing the environmental concerns.
Anyways, this is only the start of the project. Remember, that Kudankulam was started in 1987 and it is just about to get commissioned. So this project is a long way forward to implementation.
Immigration Laws
This made a lot of headline before the PM visit due to the pending US Immigration Bill.
Initially when the Bill was introduced, it produced mixed reactions:
Good points:
* Indians who are already working in US on H1-B visas, can stay in the country, even after 60 days of termination of employment.
* Earlier, they had to leave the country as soon as they lost their job.
* Also, the regulations leading to GREEN card, were relaxed. Everyone knows what a GREEN CARD is more than what is AADHAR CARD.
* The number of H1-B visas cap was also planned to be raised.
* The immigrant workers were to be paid salaries on par with the average American salary.
So with all these goody bags coming together, why was this an issue?
Bad Points:
* Companies had to pay more salary to immigrant Indians. So loss for them.
* Also, the companies which have a American : Non-American employee ratio, less than 50 : 50, have to pay double the visa fees.
* Indias services lead growth is hugely contributed for by the IT firms. Any trade law that is detrimental to their growth will lead to slow domestic growth.
Currently, the bill is passed by the Senate and is under consideration in the House of Representatives.
Diaspora:
1. Sri Srinivasan
1. Appointed to the US Court of Appeals in the Columbia Circuit.
* He is the first South Asian American to serve as a circuit court judge in American history.
Food for thought: Indian Diaspora and Politics in India:
* Recently, we saw Narendra Modi called for giving a speech to an Indian Diaspora committee. Though this was cancelled, it did call for a strategy for including NRIs into the Indian political system.
* Also, cases were filed against Sonia Gandhi, on charges related to Aliens Protection Act by Sikh groups.
* Without being political or overly biased, one must analyse this question:
* Do the Indian Diaspora have a formidable role in Indian Political system?
* Even more importantly, can they have a role, when they have lost all their roots and contacts to the country?
* If Yes, then how? If No, then why not?
Global Entry Trusted Traveler Network Programme
* Global Entry is a U.S. Customs and Border Protection (CBP) program that allows expedited clearance for pre-approved, low-risk travelers upon arrival in the United States.
* It is valid for Canadian, Mexican, Dutch, South Korean citizens apart from US citizens.
* Remember the whole Shah Rukh Khan, Abdul Kalam frisking incidents. I guess they must have got wrong notion with SRKs standard pose.
India US in WTO
* India and US have traditionally locked horns with each other in the WTO over a lot of issues.
* Earlier in 2008, it had been the case where, US had imposed anti-dumping duty on Indian, Indonesian shrimps.
* Later, in an appeal to the WTO, India won and the rule was overturned.
* US constantly tried to impose counter-vailing duties to export promotion schemes, saying that Indian schemes are creating imbalance in trade. This matter is under consideration by WTO appeals committee.
* Recently, US raised an appeal with WTO over the protectionist policies followed by India over its National Solar Mission.
* India had brought in regulations to give subsidies to developers who use Indian equipment than import foreign equipment. Hence it made US manufacturers at a loss.
* India is also contemplating to raise the US Immigration Bill as creating an imbalance or treating another country differently as the bill directly aims us.
* Recent pharma rulings by SC was feared to stir up another round of WTO issue but due to the huge public favour and the manoeuvrability within the TRIPS accord, none of the countries have raised any objections yet.
Questions for Mains:
1. Has India- US relationship enhanced in the energy sector after the 2008 deal? Critically analyse with current issues.
2. Can India play the linking pin country to US in Asia? What are its implications over India China relations?
3. BRIC countries have been a brick against US policies towards West Asia. Analyze with recent issues and outcomes.
4. What are the major concerns for India US relations in the education sector for the future?
SHIVA RAM
Bibliography:
1. http://www.heritage.org/research/reports/2013/04/beyond-the-plateau-in-us-india-relations
2. http://www.mea.gov.in/in-focus-article.htm?22265/Joint+Statement+on+Prime+Ministers+Summit+Meeting+with+President+Barack+Obama+in+Washington+DC+September+27+2013
3. http://www.mea.gov.in/in-focus-topic.htm?99/Fourth+IndiaUS+Strategic+Dialogue+June+24+2013
4. http://www.thehindu.com/opinion/lead/nuclear-extravagance-in-washington/article5168341.ece
5. http://www.thehindu.com/todays-paper/tp-opinion/singh-and-obama-play-small-ball/article5208261.ece
6. http://www.thehindubusinessline.com/industry-and-economy/info-tech/indian-it-professionals-welcome-proposed-us-immigration-bill/article4626971.ece
7. http://www.thehindu.com/news/national/manmohan-flags-indias-concerns-over-us-immigration-law-amendments/article5178836.ece
8. http://www.prsindia.org/billtrack/the-civil-liability-for-nuclear-damage-bill-2010-1042/
* This article aims at giving some of the nitty-gritties, so that some critical fodder points and the 2/5 markers can also be addressed. For a PhD type article on India US relations visit link number 1 in Bibiography.
* Also, if one looks into the press releases, it is all diplomatic jibber-jabber. For an experienced notes-maker/aspirant/serious player this is usually just crap.
* One must learn to selectively identify and analyse various issues and topics.
The recently concluded Manmohan Singhs trip to the US and other recent current affairs, has a lot of issues that are relevant for GS mains from the point of environment, science and technology, location of industries, diaspora,etc:
Topic in GSIndo US Relations
EnvironmentHydro Fluoro Carbons
Sci-TechHFCs, Defence Deals, Rotavac
IndustryWestinghouse Deal
DiasporaImmigration Bill and Recent Fee hike, ,Global Entry Trusted Traveler Network Programme
Effect of policies and politics of developed and developing countries on Indias interests.WTO appeal
Bilateral, regional and global groupings and agreements involving India and/or affecting Indias interests.India in WTO, UN, etc
Government policies and interventions for development in various sectors and issues arising out of their design and implementation.The Civil Nuclear Liability
Let us look at each of these issues:
Environment: Hydro Fluoro Carbons(HFCs)
* HFCs are organic compunds that contain Hydrogen, Fluorine, Carbon.
* Some of the common HFCs are CH2F2, R134a, etc. (No need to mug up these)
* They are used as refrigerants in cars, Air-conditioning units, etc.
* They are currently seen as threat to the environment and nations want to move out of using the chemical.
Rewind to the NCERT Chemistry textbook Chloro Fluoro Carbons(CFCs) were seen as the major threat to the environment. Then what is the difference between CFC and HFC?
CFCHFC
Chloro Fluoro CarbonHydro Fluoro Carbon
It is a dangerous gas that releases free radicals into the ozone layer. These free radicals are responsible for the decomposition of ozone layer and the ozone hole.These were introduced to substitute CFCs in the refrigeration units. But they are Super Greenhouse Gases. This means they are more dangerous than the ordinary Greenhouse gases like carbon dioxide, methane,etc
Primary Villain causing: Ozone HolePrimary Villain to: Global Warming
Included in the Montreal ProtocolNot present in the Montreal Protocol. In recent Bangkok meet, resolved to look into the issue of inclusion of HFC in Montreal Protocol.
Everything seems good. Then what is Indias problem?
* The technology to use HFCs is not yet present in India.
* We have just now migrated from CFCs to HFCs a few decades back. There is not enough R&D and resource to shift towards new technology.
* Just like in all matters, the US is the leader in R&D. So they have all the technology and the efficient corporate houses that fund such ventures.
* Hence, they lobby their government to include sale of that technology to developing nations like India.
* But there is nothing in life called as a free lunch.
Reasons against this technology:
1. It is not yet fully tested in US itself. Hence, it might be just using the developing nations for experiment purposes.
2. The technology is not cheap. Hence, it is a risky investment.
3. These companies have been lobbying US government to include restrictions to usage of HFCs by developing world, citing environmental concerns. Hence, countries like India might be forced to adopt the technology.
Against the backdrop of these issues, the recent meet had this decision that,
1. A India-US Task Force will be setup to discuss on the phasing out of HFCs
2. Also to discuss about inclusion of HFCs in Montreal Protocol, the scope of the United Nations Framework Convention on Climate Change (UNFCCC) and its Kyoto Protocol for accounting and reporting of emissions.
Defence Deals:
Whenever our PM goes to US, Russia, etc there will always be a defence deal. So in this meet our PM had some agreements too. This is not really worthy of anyones time but there just for some fodder material:
* India will participate in the Rim of the Pacific (RIMPAC) naval exercise hosted by U.S. Pacific Command in 2014.
* Also, a little bit from the history of this meet: US has proposed joint development of Javelin anti-tank missiles with India.
* Till now India has a successful co-development project only with Russia for the BrahMos cruise missile, and with Israel for the long-range surface-to-air missile (LR-SAM) and medium-range surface-to-air missile (MR-SAM).
Science and Technology Initiatives:
* ROTOVAC Vaccine
* Rotavirus is a virus that generally affects infants.
* It leads to severe diarrhea and each year, rotavirus-induced diarrheal disease kills roughly 435,000 children younger than five-years-old and hospitalises an estimated two million children worldwide, largely in developing countries.
* ROTOVAC Virus is an indigenously developed vaccing through PPP between the Indian governments Department of Biotechnology (DBT) and pharma company Bharat Biotech along with the help of US institutions and government.
* The vaccine has concluded its Phase III trials and has got approval from Drug Controller General of India (DCGI).
* The vaccine is expected to be launched in the market for sale by next year.
* Once licensed by the Drugs Controller General of India (DCGI), the vaccine will cost around Rs.54 per dose compared to the currently available vaccine which costs Rs.2,250 per dose.
* Apparently the Chairman of Bharat Biotech had made a promise to Gates Foundation to develop and supply a novel rotavirus vaccine at US$ 1 per dose.
* PACE
* It is the short form for India US Partnership to Advance Clean Energy .
* Though this was signed way back in 2009, various initiatives under this MoU was launched this year and a lot of fodder points for CleanTech per se.
* The various initiatives undertaken till now with respect to PACE are:
* Clean Energy Finance
* Substantial R&D support for Solar,Wind, Biofuels ,etc.
* Energy Efficiency in Buildings
* Not only research but deployment of technology in key areas including Power, Railways, etc.
* Development of Smart Grids Feasibility tests done in Bangalore, Delhi, Kolkata.
* Support to develop Nalanda University campus into net zero (energy, water and waste) campus in Rajghir, Bihar.
* Development of Shale Gas Resoures.
* Thirty Meter Telescope(TMT)
* This is also a long term current affair in the sense that the construction of this telescope will take so much time it will always be in current affairs. Like Kudankulam Nuclear Plant.
* But 2013 is important year since the Master Partnership Agreement between the 5 main nations US, Canada, India, Japan, China was signed in July 2013.
* India was till then only an observer in the TMT Collaborative Board. Now it is a full-fledged member.
* The 30m in the name of the telescope is due to the aperture size of the telescope which is the largest of all current telescopes.
* India, Japan, China will provide technical and financial assistance whereas the main promoters are Caltech and the University of California in the U.S. and the Association of Canadian Universities for Research in Astronomy (ACURA).
Health
Though one can quote the whole 4th India-US Strategic dialogue, it would be an overkill of information. I am just mentioning one of the new non-conventional, interesting fact from the dialogue.
* Epidemic Intelligence Service
* No no. This is not NSAs surveillance program.
* This is a specially recruited and trained batch of healthcare professionals who are used to identify epidemics quickly.
* Doctors are trained by the Centre for Disease Control(CDC), USA and later placed in public health programmes or state health programs.
* The EIS is modelled on the Service of the same name in US, which is operational from 1951.
* The first batch of trained personnel will graduate in 2014.
* Also a Global Disease Detection-India Centre has been established to sync with the global health community and use the services of the EIS in the future.
Westinghouse and Nuclear Reactors
Does anyone remember the Indo-US Nuclear Deal that was signed in 2008? This new agreement is related to that 2008 deal.
* WH had got approval from US regulator for its AP1000 nuclear reactor in 2012.
* It has an operational life of about 60 years. Nuclear power plants are given operational license for 40 years.
* After the approval from US regulator, Nuclear Power Corporation of India Limited(NPCIL) had talks with WH to setup the plant in Mithivirdi site in Bhavnagar district in Gujarat.
* The plant is planned to be of 6000 MW capacity with 6 AP1000 reactors and implemented phase-wise.
* A Preliminary pact had already been signed in 2012 when Hillary Clinton had visited India.
* This Pre-Early Works agreement will cover environmental impact studies, licensing issues, cost of building the reactors, and training and research among others.
* States to benefit from the plant are Gujarat, Maharashtra, MP, Rajasthan and Chhattisgarh.
What are the issues?
* Till now, there has been no AP1000 reactor that is operational. Investing such a huge amount of money on an untested reactor can seem dangerous.
* Combined with this, the government is planning to suggest waiver of the liability in case of disaster.
* This is by the right to recourse provision in the Nuclear Liability Act is even more worrisome.
There are some major issues with the Nuclear Liability Act in the first place:
* The affected persons cannot directly file a law suit claiming damages against the manufacturer.
* Such provisions called as Class Actions Suits are generally very costly. When combined with the huge number of affected persons, it can get very costly.
* The total liability of WH towards NPCIL (the operator of the plant) would be 1500 crores. This is paltry sum considering the damage that can be caused. Fukushima had to cough up much more than that, just to clean up.
* The time limit upto which the liability is valid is only 10 years for property damage. Any long term infrastructure shows defects in its mid-life period and not at the start. Since, the license itself is given for 40 years, it should have been more.
* Also, there are rumours that the right to recourse is planned to waived for GH.
Right to Recourse:
So let us understand what this right to recourse is:
* NPCIL being the operator of the plant, is the actual entity that is being bound by the Civil Liability for Nuclear damage Act.
* So, NPCIL will pay the liability amount in case of accidents.
* But when the accident in the plant is caused due to some fault of the supplier of the plant (namely in this case WH), then NPCIL can charge WH for the damage.
* This is called as a right to recourse the liability onto the supplier.
* This provision can be waived by the supplier (GH) if it signs a contract with the operator (NPCIL) saying so.
All these issues are not even taking into factor:
1. The land acquisition issues regarding the power plant.
2. Local population protests against the project.
3. The environment activists protesting citing the environmental concerns.
Anyways, this is only the start of the project. Remember, that Kudankulam was started in 1987 and it is just about to get commissioned. So this project is a long way forward to implementation.
Immigration Laws
This made a lot of headline before the PM visit due to the pending US Immigration Bill.
Initially when the Bill was introduced, it produced mixed reactions:
Good points:
* Indians who are already working in US on H1-B visas, can stay in the country, even after 60 days of termination of employment.
* Earlier, they had to leave the country as soon as they lost their job.
* Also, the regulations leading to GREEN card, were relaxed. Everyone knows what a GREEN CARD is more than what is AADHAR CARD.
* The number of H1-B visas cap was also planned to be raised.
* The immigrant workers were to be paid salaries on par with the average American salary.
So with all these goody bags coming together, why was this an issue?
Bad Points:
* Companies had to pay more salary to immigrant Indians. So loss for them.
* Also, the companies which have a American : Non-American employee ratio, less than 50 : 50, have to pay double the visa fees.
* Indias services lead growth is hugely contributed for by the IT firms. Any trade law that is detrimental to their growth will lead to slow domestic growth.
Currently, the bill is passed by the Senate and is under consideration in the House of Representatives.
Diaspora:
1. Sri Srinivasan
1. Appointed to the US Court of Appeals in the Columbia Circuit.
* He is the first South Asian American to serve as a circuit court judge in American history.
Food for thought: Indian Diaspora and Politics in India:
* Recently, we saw Narendra Modi called for giving a speech to an Indian Diaspora committee. Though this was cancelled, it did call for a strategy for including NRIs into the Indian political system.
* Also, cases were filed against Sonia Gandhi, on charges related to Aliens Protection Act by Sikh groups.
* Without being political or overly biased, one must analyse this question:
* Do the Indian Diaspora have a formidable role in Indian Political system?
* Even more importantly, can they have a role, when they have lost all their roots and contacts to the country?
* If Yes, then how? If No, then why not?
Global Entry Trusted Traveler Network Programme
* Global Entry is a U.S. Customs and Border Protection (CBP) program that allows expedited clearance for pre-approved, low-risk travelers upon arrival in the United States.
* It is valid for Canadian, Mexican, Dutch, South Korean citizens apart from US citizens.
* Remember the whole Shah Rukh Khan, Abdul Kalam frisking incidents. I guess they must have got wrong notion with SRKs standard pose.
India US in WTO
* India and US have traditionally locked horns with each other in the WTO over a lot of issues.
* Earlier in 2008, it had been the case where, US had imposed anti-dumping duty on Indian, Indonesian shrimps.
* Later, in an appeal to the WTO, India won and the rule was overturned.
* US constantly tried to impose counter-vailing duties to export promotion schemes, saying that Indian schemes are creating imbalance in trade. This matter is under consideration by WTO appeals committee.
* Recently, US raised an appeal with WTO over the protectionist policies followed by India over its National Solar Mission.
* India had brought in regulations to give subsidies to developers who use Indian equipment than import foreign equipment. Hence it made US manufacturers at a loss.
* India is also contemplating to raise the US Immigration Bill as creating an imbalance or treating another country differently as the bill directly aims us.
* Recent pharma rulings by SC was feared to stir up another round of WTO issue but due to the huge public favour and the manoeuvrability within the TRIPS accord, none of the countries have raised any objections yet.
Questions for Mains:
1. Has India- US relationship enhanced in the energy sector after the 2008 deal? Critically analyse with current issues.
2. Can India play the linking pin country to US in Asia? What are its implications over India China relations?
3. BRIC countries have been a brick against US policies towards West Asia. Analyze with recent issues and outcomes.
4. What are the major concerns for India US relations in the education sector for the future?
SHIVA RAM
Bibliography:
1. http://www.heritage.org/research/reports/2013/04/beyond-the-plateau-in-us-india-relations
2. http://www.mea.gov.in/in-focus-article.htm?22265/Joint+Statement+on+Prime+Ministers+Summit+Meeting+with+President+Barack+Obama+in+Washington+DC+September+27+2013
3. http://www.mea.gov.in/in-focus-topic.htm?99/Fourth+IndiaUS+Strategic+Dialogue+June+24+2013
4. http://www.thehindu.com/opinion/lead/nuclear-extravagance-in-washington/article5168341.ece
5. http://www.thehindu.com/todays-paper/tp-opinion/singh-and-obama-play-small-ball/article5208261.ece
6. http://www.thehindubusinessline.com/industry-and-economy/info-tech/indian-it-professionals-welcome-proposed-us-immigration-bill/article4626971.ece
7. http://www.thehindu.com/news/national/manmohan-flags-indias-concerns-over-us-immigration-law-amendments/article5178836.ece
8. http://www.prsindia.org/billtrack/the-civil-liability-for-nuclear-damage-bill-2010-1042/
What is Biopiracy? Explain with examples from India.
What is Biopiracy? Explain with examples from India.
Bioprospecting is an umbrella term describing the process of discovery and commercialization of new products based on biological resources.
Bioprospecting often draws on indigenous knowledge about uses and characteristics of plants and animals.
bioprospecting includes biopiracy
Biopiracy is a situation where indigenous knowledge of nature, originating with indigenous peoples, is used by others for profit, without permission from and with little or no compensation or recognition to the indigenous people themselves.
For example when bioprospectors draw on indigenous knowledge of medicinal plants which is later patented by medical companies without recognizing the fact that the knowledge is not new, or invented by the patenter, and depriving the indigenous community to the rights to commercial exploitation of the technology that they themselves had developed.
These practices contribute to inequality between developing countries rich in biodiversity, and developed countries hosting companies that engage in 'biopiracy'
A famous case of bioprospecting is about patenting of neem and basmati rice. US based pharmaceutical research firm received a patent on a technique to extract an antifungal agent from the neem tree which grows throughout India and Nepal. Indian villagers have long understood the tree's medicinal value. Widespread public outcry, echoed throughout the developing world. Legal action by the Indian government followed, with the patent eventually being overturned
US corporation RiceTec attempted to patent certain hybrids of basmati rice. The Indian government intervened and several claims of the patent were invalidated.
One common misunderstanding is that pharmaceutical companies patent the plants they collect. While obtaining a patent on a naturally occurring organism as previously known or used is not possible, patents may be taken out on specific chemicals isolated or developed from plants. Often these patents are obtained with a stated and researched use of those chemicals. Generally the existence, structure and synthesis of those compounds is not a part of the indigenous medical knowledge.
Convention on Biological Diversity (CBD)
The CBD came into force in 1993. It secured rights to control access to genetic resources for the countries in which those resources are located. One objective of the CBD is to enable lesser-developed countries to better benefit from their resources and traditional knowledge. Under the rules of the CBD, bioprospectors are required to obtain informed consent to access such resources, and must share any benefits with the biodiversity-rich country.
However, some critics believe that the CBD has failed to establish appropriate regulations to prevent biopiracy. Others claim that the main problem is the failure of national governments to pass appropriate laws implementing the provisions of the CBD
The Nagoya Protocol to the CBD (negotiated in 2010, expected to come into force in 2014) will provide further regulations. The CBD has been ratified by all countries in the world except USA
The 1994 Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) is further a relevant agreement
The ethical debate has sparked a new branch of international patent and trade law
Bioprospecting contracts lay down the rules, between researchers and countries, of benefit sharing and can bring royalties to lesser-developed countries. However, the fairness of these contracts has been a subject of debate. Unethical bioprospecting contracts (as distinct from ethical ones) can be viewed as a new form of biopiracy.
In response to concerns of biopiracy raised by research into turmeric, neem and basmati rice, the Government of India has been translating and publishing ancient manuscripts containing old remedies in electronic form, and in 2001 the Traditional Knowledge Digital Library was set up as a repository of 1200 formulations of various systems of Indian medicine, such as Ayurveda, Unani and Siddha.
The aim is to protect India's heritage from being exploited by foreign companies. Hundreds of yoga poses are also kept in the collection.
The library has also signed agreements with leading international patent offices such as European Patent Office (EPO), United Kingdom Trademark & Patent Office (UKPTO) and the United States Patent and Trademark Office to protect traditional knowledge from biopiracy as it allows patent examiners at International Patent Offices to access TKDL databases for patent search and examination purposes
The manipulative nature and destabilizing affects of patents, IPRs and agro-business conglomerates in the context of rural India
Agriculture is the primary source of livelihood for some 70% of Indians. Considering the fact that only 1% of Americans and 2-3% of Europeans derive their livelihood from agriculture, this is a huge level of dependence
From the time of independence in 1947, up until the 1960s, agricultural development was not a major focus for public debate.
It was only with the threat of famine in 1961 and severe droughts in 1965 and 1966 that officials recognized the agricultural hardships that plagued rural populations
These hardships provided a justification for both the World Bank and the US to enter India with the promise of miracle seeds, assistance and price incentives
These miracle seeds were actually hybrid seeds, and resulted in huge yields of food grains. Indeed, the Green Revolution had entered India, and with it came an entirely new concept: non-organic farming.
During the late 1960s, debates focused on finding an appropriate balance between rural agriculture and Indias desire to develop and industrialize at a steady pace.
The Patent Act 1970 was hailed as a fair balance between investor and consumer interests, as it promoted industrial growth in an unrestrictive manner. Plants and animals were restricted, so that they could not be patented, moreover food products, chemical inventions and drugs were eligible for only process patents. Patents were deemed to be valid for 7 years after their date of application.
This all changed as India entered a new phase of economic liberalization, in the hopes of being embraced as a viable international trading partner.
In response to the balance of payment crisis, the New Economic Policy of 1991 (NEP 1991) introduced major changes in India. With an increased desire to catch-up to international economic powerhouses, deep-rooted industries such as the agricultural sector have taken for granted since 1991.
The transition to the WTO from the GATT marks a crucial time when the rights and sovereignty of rural communities in developing countries was institutionally compromised. This has been accepted by officials as a consequence of increased international economic engagement. In comparison to the WTO, the GATT provided countries with far more freedom to develop and follow their own IPR laws. The GATT was not specific with regards to patent law. A key distinguishing factor of the WTO is the TRIPs agreement. In order for countries to be accepted as members of the WTO, they must adhere to all of its laws, including those of TRIPs. Thus, in order to be given clearance to join the WTO, countries had to amend any national patent law that contradicts TRIPs
India signed into the WTO in 1995 and has since taken many steps forward to be fully embraced by the international community as an excellent trading partner
A constant criticism of developing countries has been that they have taken far too long to adopt TRIPs. Indias sluggish TRIPs adoption process was criticized by the U.S, who took action by notifying the WTO. In 1998 the WTO publicly ruled that Indias failure to fully amend its patent law was in violation of TRIPs, and was overall illegal
In response to such criticisms, the Indian government has undergone multiple IPR legislative changes
exclusionary clauses of product patents in areas of food, drugs and medicine were removed
allow for the patenting of life forms, living organism derivatives, gene patents and components
National IPR law had to also be changed to allow for patents to be valid for 20 years
Indias desire to become a member of the WTO has come at a very high price: its legislative sovereignty. However, this loss of autonomy has meant a gain for some, namely the U.S. TRIPs has essentially globalized the American understanding of IPR law
The innovations and seed developments of rural India were once priceless this is no longer the case.
As, in the words of Vandana Shiva, both conglomerates and TRIPs are not just for new inventions but for the knowledge of our grandmothers
The Case of Basmati Rice
Basmati rice, known for its aroma and long grains has its origins in the Indian subcontinent
Basmati meaning queen of fragrance and fragrant Earth is embedded in Indian folklore and religious practices, in which they often symbolizing growth
With an embedded history and economic ties to specific regions, it is interesting how an agro-business conglomerate could ever mistakenly question the origins of Basmati.
Biopiracy refers to the use of intellectual property systems to legitimize the exclusive ownership and control over biological resources and biological products and processes that have been used over centuries in non-industrialized culture
1997, Texas based RiceTec Inc. was granted patent for the genetic lines of Basmati rice, by the U.S Patent and Trademark Office(USPTO). Immediately, RiceTec began to develop hybrids using various blends of Basmati. Promoted as an, American type of Basmati rice, RiceTec developed a new plant variety cross between American long-grain and Basmati
Criticism from Indian rice farmers logically ensued, as many were forced to pay royalties to the conglomerate
Indian officials publicly pleaded with USPTO to review the RiceTec Basmati case, as Indian exports were beginning to be threatened
Moreover, the use of the name Basmati itself was misleading for customers considering that the product was a hybrid grain
The name Basmati carries with it a reputation of culinary excellence, and RiceTec was benefiting from it. Under Article 23 of the TRIPs agreement,using words such as kind, type, and style is illegal, and RiceTec had used such words numerous times
Moreover, considering the geographical indicators clause of TRIPs, the entire process of approval and acquisition of RiceTecs Basmati patent can be deemed to be illegal. Article 22 of the TRIPs agreement, (the geographical indicator clause) prohibits the use of both direct and indirect uses of a goods geographical origin
In this respect, Basmati is to the India what Champagne is to France, part of the regional identity.
Finally RiceTec lost the right to use the Basmati like advertising slogan
RiceTec was able to keep their Indian-American hybrids Texmati, Jasmati and Kasmati
Overall, the most appalling aspect of this infamous case is not the manipulative nature of RiceTec. Rather it is the lack of immediate government response. As previously stated, officials only became concerned after Basmati exports were felt to be in jeopardy.
Basmati Biopiracy
RiceTecs Basmati patent is a case of resource piracy as a natural resource (Basmati rice) was taken from a specific country without any sort of granted permission or public recognition
It is a case of economic piracy as RiceTec used the term Basmati, to advertise their hybrid rice, in the hopes of appealing to customers looking for an aromatic product similar to the original Basmati
Finally, it was a case of both intellectual and cultural piracy as RiceTec through its acquisition of Basmati, patented a key heritage piece of rice producing rural communities without permission
it is clear that the TRIPs agreement promotes a rather unfair, biased one-sided pro West framework. Developing countries like India have the choice of either conforming, and as result turning the blind eye on their population, or being blacklisted from international organizations.
The severity of RiceTecs biopiracy cannot be underestimated, as the conglomerate was claiming to have invented the physical characteristics of Basmati such as the plant height and grain length
By claiming ownership of the rice plant itself, RiceTec was directly threatening rural farming communities. Throughout centuries of development, Indian farmers have produced some 200,000 varieties of rice
Therefore, if RiceTec were to own the Basmati rice plant itself the autonomy and ability of farmers to engage in common sharing techniques, (a fundamental of rural communities), would be compromised. To the dismay of farmers, in the eyes of both IPR law, and the TRIPs agreement, it would be considered illegal to share cultivation techniques.
For rural farmers, patents stand to compromise what is known as the commons.
Agricultural knowledge and cultivation techniques passed down from older generations carry with them inherent seed adaptations and innovations
The ability to work the land and use the surrounding environment is compromised for monopolistic like conglomerate seed promotion. Biodiversity is inherently threatened, as farmers no longer have the rights to freely work their crop. Moreover, agro-business conglomerates have no real responsibility to ensure that farmers from developing countries are taken care of
Equitable benefit sharing as envisioned by the UN Convention for Biological Diversity (CBD) have been permanently undermined
Taking place in 1992, in the Rio de Janeiro the CBD advocates for conservation, sharing and state sovereignty over resources
Promoted primarily by developing countries like India, the CBD attempts to integrate and protect indigenous traditional knowledge. Concretely, the CBD called for the sovereign rights of rural resources
the fact that the CBD is a framework and not legally binding per say
The Case of BT Cotton
Prior to colonization, cotton was traded in the Indus Valley as mainly a Luxury good
It was only in the 19th century, after colonization that cotton cultivation followed a more mass production
Cotton production is a staple of the Indian agricultural economy
overall 21% of all cotton produced globally comes from India
However, cotton is a very expensive crop to cultivate
Over half of Indias total pesticides (40,000 tonnes) are used in the upkeep of cotton cropland
The prices of inputs such as pesticides have continued to increase.
For agro-business conglomerates, the related expenses of cotton production are the ideal platform to sell, innovate, and develop their seed monopolies.
Conglomerates have taken advantage of the hardships associated with cotton production, and in the context of India, uneducated desperate rural communities who are merely looking to improve their standards of living are at their mercy.
Monsanto developed Bt cotton in 1995; the plant was genetically engineered to include insecticide to fight the common bollworm
The seed includes toxins, which Monsanto alleges will reduce costs for farmers. In 1998 Monsanto began a series of Bt cotton trial tests in India, albeit illegally
Monsanto did not apply for trial testing clearance, and was not given any sort of formal approval to conduct studies on rural land.
After going public with the results of their trial tests, Monsanto promoted Bt cotton as the perfect cost-cutting crop for rural India. It was claimed that yield output would increase
With promises of higher yields and lower costs, the Indian government officially approved three Bt cotton hybrids
This clearance was given to Monsanto in conjunction with the Maharashtra Hybrid Seed Company (Mahyco), which conveniently enough, Monsanto has a stake in
Bt cotton was the first GM seed to be given clearance by the Indian government and is now viewed as the example of how agro-business conglomerates impact vulnerable rural communities.
Firstly, it was discovered that in reality bollworm pests attacked Bt crop far more often than compared to simple hybrid and organic cotton crops
Secondly, the claim of higher yield per acre was never realized
All farmers incur the financial cost of the actual seed. This is significant considering that Bt cotton seeds are approximately four times more expensive then both organic and hybrid seeds. Also, with the purchase of the Bt seed farmers must give up the right to harvest their own seed, which they have evolved over the years. This is why Bt cotton is especially debilitating, by giving up their indigenous cottonseed; the farmer becomes locked into a cycle of agro-business conglomerate dependence.
Bt cotton cropland is sprayed many times due to increased bollworm resisitance. Such an increased level of chemical use has killed off many natural enemies of bollworm pests. Moreover, such a high level of bollworm resistance has allowed for other pests to increasingly attack Bt cotton fields. The Bt pesticide does not have the genetic characteristics to effectively fight off these pests. Thus, farmers are forced to purchase inputs in the form of pesticides, herbicides and insecticides on a continuous basis. Bt cotton has developed a cyclical like purchasing scheme where farmers constantly have to salvage their crop through inputs. This has put majority of Bt cotton farmers in debt, as they cannot afford the endless array of necessary inputs. If they do not upkeep their crop, their livelihood is threatened, resulting in greater poverty and conglomerate dependence. With the interest rate of loans between 36% and 50%, farmers in these communities are increasingly becoming indebted. These loans are not coming from officials; rather they are from private rural lenders and agro-business conglomerates.
Non GM seeds need approximately 3,000 litres of water to produce one kilo of crop, anything else (including Bt seed) needs at least 5,000 litres of water to produce one kilo. AP often suffers from drought, and as a result, Bt cotton crops within the state has caused massive destabilization.
All three approved Bt cotton varieties have not been able to survive and overcome the extreme nature of AP droughts
Farmer suicides in AP have increased after Bt cotton was both approved and promoted by governing officials. The financial stress associated with Bt cotton, has indeed been grave. A similar trend is visible in Maharastra.
There exists a large population of rural farmers who are experiencing problems with Bt cotton crop, due to their reliance on natural rainfall.
Rural farmers have experienced a deskilling of cultivation techniques, which carries with it severe social and ecological consequences
The cultural importance of knowledge sharing is being lost to scientific IPRs. Due to the rule-based scientific formula techniques of cultivation associated with GM seeds like Bt cotton farmers can no longer work their land. Through massive debts and depression, GM seeds such as Bt cotton have increased levels of rural bankruptcy and suicide
The case of BT Brinjal
Mahyco, Bt Brinjal promoter, could be in for more trouble than just the long-standing moratorium on its product. The case for criminal prosecution of the company officials for biopiracy has been revived with the Karnataka High Court
The National Biodiversity Board (NBA) and the Karnataka Biodiversity Board (KBB) filed the case for criminal prosecution of Mahyco or Maharashtra Hybrid Seeds Co Limited, which is partly owned by Monsanto. The authorities complained in 2012 that the company, along with others, had genetically modified local varieties of eggplant without mandatory approval and laid illegal proprietary claim to the genetically modified seeds.
Bt Brinjal possibly violating the Biodiversity Act 2002
2010 when the controversy over commercial release of Bt Brinjal hit the headlines. But the authorities dithered for two years even after investigating and concluding that there was a clear case of biopiracy.
It was only when a PIL was filed in the Karnataka High Court in 2012 that the authorities finally filed charges against the accused
Ashutosh Katiyar
References
http://www.globalresearch.ca/biopiracy-gm-seeds-and-rural-india
http://www.organicconsumers.org/articles/article_8463.cfm
Bioprospecting is an umbrella term describing the process of discovery and commercialization of new products based on biological resources.
Bioprospecting often draws on indigenous knowledge about uses and characteristics of plants and animals.
bioprospecting includes biopiracy
Biopiracy is a situation where indigenous knowledge of nature, originating with indigenous peoples, is used by others for profit, without permission from and with little or no compensation or recognition to the indigenous people themselves.
For example when bioprospectors draw on indigenous knowledge of medicinal plants which is later patented by medical companies without recognizing the fact that the knowledge is not new, or invented by the patenter, and depriving the indigenous community to the rights to commercial exploitation of the technology that they themselves had developed.
These practices contribute to inequality between developing countries rich in biodiversity, and developed countries hosting companies that engage in 'biopiracy'
A famous case of bioprospecting is about patenting of neem and basmati rice. US based pharmaceutical research firm received a patent on a technique to extract an antifungal agent from the neem tree which grows throughout India and Nepal. Indian villagers have long understood the tree's medicinal value. Widespread public outcry, echoed throughout the developing world. Legal action by the Indian government followed, with the patent eventually being overturned
US corporation RiceTec attempted to patent certain hybrids of basmati rice. The Indian government intervened and several claims of the patent were invalidated.
One common misunderstanding is that pharmaceutical companies patent the plants they collect. While obtaining a patent on a naturally occurring organism as previously known or used is not possible, patents may be taken out on specific chemicals isolated or developed from plants. Often these patents are obtained with a stated and researched use of those chemicals. Generally the existence, structure and synthesis of those compounds is not a part of the indigenous medical knowledge.
Convention on Biological Diversity (CBD)
The CBD came into force in 1993. It secured rights to control access to genetic resources for the countries in which those resources are located. One objective of the CBD is to enable lesser-developed countries to better benefit from their resources and traditional knowledge. Under the rules of the CBD, bioprospectors are required to obtain informed consent to access such resources, and must share any benefits with the biodiversity-rich country.
However, some critics believe that the CBD has failed to establish appropriate regulations to prevent biopiracy. Others claim that the main problem is the failure of national governments to pass appropriate laws implementing the provisions of the CBD
The Nagoya Protocol to the CBD (negotiated in 2010, expected to come into force in 2014) will provide further regulations. The CBD has been ratified by all countries in the world except USA
The 1994 Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) is further a relevant agreement
The ethical debate has sparked a new branch of international patent and trade law
Bioprospecting contracts lay down the rules, between researchers and countries, of benefit sharing and can bring royalties to lesser-developed countries. However, the fairness of these contracts has been a subject of debate. Unethical bioprospecting contracts (as distinct from ethical ones) can be viewed as a new form of biopiracy.
In response to concerns of biopiracy raised by research into turmeric, neem and basmati rice, the Government of India has been translating and publishing ancient manuscripts containing old remedies in electronic form, and in 2001 the Traditional Knowledge Digital Library was set up as a repository of 1200 formulations of various systems of Indian medicine, such as Ayurveda, Unani and Siddha.
The aim is to protect India's heritage from being exploited by foreign companies. Hundreds of yoga poses are also kept in the collection.
The library has also signed agreements with leading international patent offices such as European Patent Office (EPO), United Kingdom Trademark & Patent Office (UKPTO) and the United States Patent and Trademark Office to protect traditional knowledge from biopiracy as it allows patent examiners at International Patent Offices to access TKDL databases for patent search and examination purposes
The manipulative nature and destabilizing affects of patents, IPRs and agro-business conglomerates in the context of rural India
Agriculture is the primary source of livelihood for some 70% of Indians. Considering the fact that only 1% of Americans and 2-3% of Europeans derive their livelihood from agriculture, this is a huge level of dependence
From the time of independence in 1947, up until the 1960s, agricultural development was not a major focus for public debate.
It was only with the threat of famine in 1961 and severe droughts in 1965 and 1966 that officials recognized the agricultural hardships that plagued rural populations
These hardships provided a justification for both the World Bank and the US to enter India with the promise of miracle seeds, assistance and price incentives
These miracle seeds were actually hybrid seeds, and resulted in huge yields of food grains. Indeed, the Green Revolution had entered India, and with it came an entirely new concept: non-organic farming.
During the late 1960s, debates focused on finding an appropriate balance between rural agriculture and Indias desire to develop and industrialize at a steady pace.
The Patent Act 1970 was hailed as a fair balance between investor and consumer interests, as it promoted industrial growth in an unrestrictive manner. Plants and animals were restricted, so that they could not be patented, moreover food products, chemical inventions and drugs were eligible for only process patents. Patents were deemed to be valid for 7 years after their date of application.
This all changed as India entered a new phase of economic liberalization, in the hopes of being embraced as a viable international trading partner.
In response to the balance of payment crisis, the New Economic Policy of 1991 (NEP 1991) introduced major changes in India. With an increased desire to catch-up to international economic powerhouses, deep-rooted industries such as the agricultural sector have taken for granted since 1991.
The transition to the WTO from the GATT marks a crucial time when the rights and sovereignty of rural communities in developing countries was institutionally compromised. This has been accepted by officials as a consequence of increased international economic engagement. In comparison to the WTO, the GATT provided countries with far more freedom to develop and follow their own IPR laws. The GATT was not specific with regards to patent law. A key distinguishing factor of the WTO is the TRIPs agreement. In order for countries to be accepted as members of the WTO, they must adhere to all of its laws, including those of TRIPs. Thus, in order to be given clearance to join the WTO, countries had to amend any national patent law that contradicts TRIPs
India signed into the WTO in 1995 and has since taken many steps forward to be fully embraced by the international community as an excellent trading partner
A constant criticism of developing countries has been that they have taken far too long to adopt TRIPs. Indias sluggish TRIPs adoption process was criticized by the U.S, who took action by notifying the WTO. In 1998 the WTO publicly ruled that Indias failure to fully amend its patent law was in violation of TRIPs, and was overall illegal
In response to such criticisms, the Indian government has undergone multiple IPR legislative changes
exclusionary clauses of product patents in areas of food, drugs and medicine were removed
allow for the patenting of life forms, living organism derivatives, gene patents and components
National IPR law had to also be changed to allow for patents to be valid for 20 years
Indias desire to become a member of the WTO has come at a very high price: its legislative sovereignty. However, this loss of autonomy has meant a gain for some, namely the U.S. TRIPs has essentially globalized the American understanding of IPR law
The innovations and seed developments of rural India were once priceless this is no longer the case.
As, in the words of Vandana Shiva, both conglomerates and TRIPs are not just for new inventions but for the knowledge of our grandmothers
The Case of Basmati Rice
Basmati rice, known for its aroma and long grains has its origins in the Indian subcontinent
Basmati meaning queen of fragrance and fragrant Earth is embedded in Indian folklore and religious practices, in which they often symbolizing growth
With an embedded history and economic ties to specific regions, it is interesting how an agro-business conglomerate could ever mistakenly question the origins of Basmati.
Biopiracy refers to the use of intellectual property systems to legitimize the exclusive ownership and control over biological resources and biological products and processes that have been used over centuries in non-industrialized culture
1997, Texas based RiceTec Inc. was granted patent for the genetic lines of Basmati rice, by the U.S Patent and Trademark Office(USPTO). Immediately, RiceTec began to develop hybrids using various blends of Basmati. Promoted as an, American type of Basmati rice, RiceTec developed a new plant variety cross between American long-grain and Basmati
Criticism from Indian rice farmers logically ensued, as many were forced to pay royalties to the conglomerate
Indian officials publicly pleaded with USPTO to review the RiceTec Basmati case, as Indian exports were beginning to be threatened
Moreover, the use of the name Basmati itself was misleading for customers considering that the product was a hybrid grain
The name Basmati carries with it a reputation of culinary excellence, and RiceTec was benefiting from it. Under Article 23 of the TRIPs agreement,using words such as kind, type, and style is illegal, and RiceTec had used such words numerous times
Moreover, considering the geographical indicators clause of TRIPs, the entire process of approval and acquisition of RiceTecs Basmati patent can be deemed to be illegal. Article 22 of the TRIPs agreement, (the geographical indicator clause) prohibits the use of both direct and indirect uses of a goods geographical origin
In this respect, Basmati is to the India what Champagne is to France, part of the regional identity.
Finally RiceTec lost the right to use the Basmati like advertising slogan
RiceTec was able to keep their Indian-American hybrids Texmati, Jasmati and Kasmati
Overall, the most appalling aspect of this infamous case is not the manipulative nature of RiceTec. Rather it is the lack of immediate government response. As previously stated, officials only became concerned after Basmati exports were felt to be in jeopardy.
Basmati Biopiracy
RiceTecs Basmati patent is a case of resource piracy as a natural resource (Basmati rice) was taken from a specific country without any sort of granted permission or public recognition
It is a case of economic piracy as RiceTec used the term Basmati, to advertise their hybrid rice, in the hopes of appealing to customers looking for an aromatic product similar to the original Basmati
Finally, it was a case of both intellectual and cultural piracy as RiceTec through its acquisition of Basmati, patented a key heritage piece of rice producing rural communities without permission
it is clear that the TRIPs agreement promotes a rather unfair, biased one-sided pro West framework. Developing countries like India have the choice of either conforming, and as result turning the blind eye on their population, or being blacklisted from international organizations.
The severity of RiceTecs biopiracy cannot be underestimated, as the conglomerate was claiming to have invented the physical characteristics of Basmati such as the plant height and grain length
By claiming ownership of the rice plant itself, RiceTec was directly threatening rural farming communities. Throughout centuries of development, Indian farmers have produced some 200,000 varieties of rice
Therefore, if RiceTec were to own the Basmati rice plant itself the autonomy and ability of farmers to engage in common sharing techniques, (a fundamental of rural communities), would be compromised. To the dismay of farmers, in the eyes of both IPR law, and the TRIPs agreement, it would be considered illegal to share cultivation techniques.
For rural farmers, patents stand to compromise what is known as the commons.
Agricultural knowledge and cultivation techniques passed down from older generations carry with them inherent seed adaptations and innovations
The ability to work the land and use the surrounding environment is compromised for monopolistic like conglomerate seed promotion. Biodiversity is inherently threatened, as farmers no longer have the rights to freely work their crop. Moreover, agro-business conglomerates have no real responsibility to ensure that farmers from developing countries are taken care of
Equitable benefit sharing as envisioned by the UN Convention for Biological Diversity (CBD) have been permanently undermined
Taking place in 1992, in the Rio de Janeiro the CBD advocates for conservation, sharing and state sovereignty over resources
Promoted primarily by developing countries like India, the CBD attempts to integrate and protect indigenous traditional knowledge. Concretely, the CBD called for the sovereign rights of rural resources
the fact that the CBD is a framework and not legally binding per say
The Case of BT Cotton
Prior to colonization, cotton was traded in the Indus Valley as mainly a Luxury good
It was only in the 19th century, after colonization that cotton cultivation followed a more mass production
Cotton production is a staple of the Indian agricultural economy
overall 21% of all cotton produced globally comes from India
However, cotton is a very expensive crop to cultivate
Over half of Indias total pesticides (40,000 tonnes) are used in the upkeep of cotton cropland
The prices of inputs such as pesticides have continued to increase.
For agro-business conglomerates, the related expenses of cotton production are the ideal platform to sell, innovate, and develop their seed monopolies.
Conglomerates have taken advantage of the hardships associated with cotton production, and in the context of India, uneducated desperate rural communities who are merely looking to improve their standards of living are at their mercy.
Monsanto developed Bt cotton in 1995; the plant was genetically engineered to include insecticide to fight the common bollworm
The seed includes toxins, which Monsanto alleges will reduce costs for farmers. In 1998 Monsanto began a series of Bt cotton trial tests in India, albeit illegally
Monsanto did not apply for trial testing clearance, and was not given any sort of formal approval to conduct studies on rural land.
After going public with the results of their trial tests, Monsanto promoted Bt cotton as the perfect cost-cutting crop for rural India. It was claimed that yield output would increase
With promises of higher yields and lower costs, the Indian government officially approved three Bt cotton hybrids
This clearance was given to Monsanto in conjunction with the Maharashtra Hybrid Seed Company (Mahyco), which conveniently enough, Monsanto has a stake in
Bt cotton was the first GM seed to be given clearance by the Indian government and is now viewed as the example of how agro-business conglomerates impact vulnerable rural communities.
Firstly, it was discovered that in reality bollworm pests attacked Bt crop far more often than compared to simple hybrid and organic cotton crops
Secondly, the claim of higher yield per acre was never realized
All farmers incur the financial cost of the actual seed. This is significant considering that Bt cotton seeds are approximately four times more expensive then both organic and hybrid seeds. Also, with the purchase of the Bt seed farmers must give up the right to harvest their own seed, which they have evolved over the years. This is why Bt cotton is especially debilitating, by giving up their indigenous cottonseed; the farmer becomes locked into a cycle of agro-business conglomerate dependence.
Bt cotton cropland is sprayed many times due to increased bollworm resisitance. Such an increased level of chemical use has killed off many natural enemies of bollworm pests. Moreover, such a high level of bollworm resistance has allowed for other pests to increasingly attack Bt cotton fields. The Bt pesticide does not have the genetic characteristics to effectively fight off these pests. Thus, farmers are forced to purchase inputs in the form of pesticides, herbicides and insecticides on a continuous basis. Bt cotton has developed a cyclical like purchasing scheme where farmers constantly have to salvage their crop through inputs. This has put majority of Bt cotton farmers in debt, as they cannot afford the endless array of necessary inputs. If they do not upkeep their crop, their livelihood is threatened, resulting in greater poverty and conglomerate dependence. With the interest rate of loans between 36% and 50%, farmers in these communities are increasingly becoming indebted. These loans are not coming from officials; rather they are from private rural lenders and agro-business conglomerates.
Non GM seeds need approximately 3,000 litres of water to produce one kilo of crop, anything else (including Bt seed) needs at least 5,000 litres of water to produce one kilo. AP often suffers from drought, and as a result, Bt cotton crops within the state has caused massive destabilization.
All three approved Bt cotton varieties have not been able to survive and overcome the extreme nature of AP droughts
Farmer suicides in AP have increased after Bt cotton was both approved and promoted by governing officials. The financial stress associated with Bt cotton, has indeed been grave. A similar trend is visible in Maharastra.
There exists a large population of rural farmers who are experiencing problems with Bt cotton crop, due to their reliance on natural rainfall.
Rural farmers have experienced a deskilling of cultivation techniques, which carries with it severe social and ecological consequences
The cultural importance of knowledge sharing is being lost to scientific IPRs. Due to the rule-based scientific formula techniques of cultivation associated with GM seeds like Bt cotton farmers can no longer work their land. Through massive debts and depression, GM seeds such as Bt cotton have increased levels of rural bankruptcy and suicide
The case of BT Brinjal
Mahyco, Bt Brinjal promoter, could be in for more trouble than just the long-standing moratorium on its product. The case for criminal prosecution of the company officials for biopiracy has been revived with the Karnataka High Court
The National Biodiversity Board (NBA) and the Karnataka Biodiversity Board (KBB) filed the case for criminal prosecution of Mahyco or Maharashtra Hybrid Seeds Co Limited, which is partly owned by Monsanto. The authorities complained in 2012 that the company, along with others, had genetically modified local varieties of eggplant without mandatory approval and laid illegal proprietary claim to the genetically modified seeds.
Bt Brinjal possibly violating the Biodiversity Act 2002
2010 when the controversy over commercial release of Bt Brinjal hit the headlines. But the authorities dithered for two years even after investigating and concluding that there was a clear case of biopiracy.
It was only when a PIL was filed in the Karnataka High Court in 2012 that the authorities finally filed charges against the accused
Ashutosh Katiyar
References
http://www.globalresearch.ca/biopiracy-gm-seeds-and-rural-india
http://www.organicconsumers.org/articles/article_8463.cfm
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