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India-UK Trade Deal: Why Public Health Safeguards Remain Untouched

The government has clarified that the new trade pact with the UK fully protects India's policy space on a critical issue. It confirms that India's right to issue compulsory licenses for medicines, especially during public health crises, remains completely intact. Beyond this safeguard, the deal opens a huge opportunity for Indian companies to bid for UK government contracts. It also includes favorable terms for India, with higher financial thresholds for market access.

Key Points: India UK CETA Pact Preserves Compulsory Licensing Powers

  • CETA reaffirms India's right to use TRIPS flexibilities for compulsory licensing
  • India's powers under Sections 84 and 92 of the Patents Act remain fully intact
  • Deal offers Indian firms access to UK's £90bn public procurement market
  • UK agreed to asymmetric market access thresholds favoring Indian suppliers
2 min read

UK trade pact doesn't restrict India's use of compulsory licensing in any form

Indian govt confirms the India-UK trade agreement fully protects India's right to issue compulsory licenses for medicines, especially during health emergencies.

"This preserves India’s discretion to act in the public interest without additional conditions. - Jitin Prasada, Minister of State"

New Delhi, Dec 13

Robust safeguards are built into the India–UK Comprehensive Economic and Trade Agreement (CETA) to fully preserve India’s policy autonomy on compulsory licensing, including during public health emergencies, according to the government.

The CETA reaffirms the rights of both parties to utilise all flexibilities available under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement, including compulsory licensing under "Articles 31 and 31bis".

“This preserves India’s discretion to act in the public interest without additional conditions. India’s powers under Section 84 (general compulsory licensing) and Section 92 (compulsory licensing in public health emergencies) of the Patents Act, 1970 remain fully intact. The CETA does not require any amendment or dilution of these provisions,” informed Jitin Prasada, Minister of State for Commerce and Industry in Rajya Sabha.

He further stated that the agreement does not restrict India’s use of Compulsory Licensing in any form.

“The agreement does not introduce any procedural delays, prior negotiation requirements, or additional thresholds that could restrict the issuance of compulsory licenses,” the minister added.

India gains guaranteed, non-discriminatory access to the UK's public procurement market, which is valued at over 90 billion pounds (approximately $122 billion) annually, including key entities like the National Health Service (NHS).

This is a massive opportunity for Indian companies, particularly in IT, pharmaceuticals, and services. Further, allowing foreign competition, albeit under controlled thresholds and categories, can increase competition, drive down costs, and lead to better value, quality, and technology adoption in government projects, said Prasada.

Furthermore, with respect to Market Access commitments, the UK has agreed for asymmetric thresholds for goods and services in favour of India wherein UK's thresholds for goods and services would be Special Drawing Rights (SDR) 130,000 while India would have a higher threshold of SDR 450,000 for goods and services.

For the first time, the UK agreed to dilute several key provisions which are part of the World Trade Organisation Government Procurement Agreement as well as their other Free Trade Agreements (FTAs).

- IANS

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Reader Comments

A
Aman W
The access to the UK's NHS procurement is a game-changer for our pharma and IT sectors. This could mean thousands of new jobs and massive export opportunities. A very pragmatic agreement.
R
Rahul R
Good to see the safeguards are in writing. But we must remain vigilant. The real test will be during the next public health crisis – will the government actually use this power without pressure? Hope they walk the talk.
S
Sarah B
The asymmetric thresholds (SDR 130k for UK vs 450k for India) show this was a carefully negotiated deal, not a rushed one. This protects our SMEs from being swamped while allowing our bigger companies to compete in the UK. Smart move.
K
Karthik V
As someone in the generic medicines industry, this news is very reassuring. The 'pharmacy of the world' tag depends on our ability to produce affordable drugs, and compulsory licensing is a key tool for that. Jai Hind!
N
Nisha Z
While the health safeguards are excellent, I hope the increased foreign competition in our government projects truly leads to better technology and lower costs for taxpayers, and doesn't just squeeze out domestic players. The proof will be in the implementation.

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