Advocacy News – Dec. 12, 2022
In an open letter to Michigan’s congressional delegation, the Michigan Chamber voiced concerns about ongoing conversations at the World Trade Organization (WTO) on an agreement on Trade-Related Aspects of Intellectual Property Rights (“TRIPS Waiver”). WTO is considering whether to expand its waiver of intellectual property (IP) rights, which would force the transfer of U.S.-developed technologies to foreign governments, and subsequently, foreign companies for manufacturing.
The WTO is proposing an expansion of its June 2022 TRIPS Waiver of IP rights on COVID vaccines to also include COVID-related therapeutics and diagnostics. While this proposed expansion is specific to pharmaceutical manufacturers, if an expanded waiver is agreed upon, no cutting-edge technology is safe from expropriation.
The Chamber has been voicing its concerns regarding the proposed expansion and has asked Michigan’s delegation to voice their concerns with the Biden Administration. The Chamber is concerned about the impact this waiver would have on the United States and Michigan’s manufacturing base, the subsequent impact on jobs and the impact on the innovation ecosystem. We are also concerned about how it could undermine and weaken the global IP environment, which only serves to weaken U.S. industries and benefit their foreign competitors.
The future of this expansion remains unclear. On Dec. 6, The Office of the United States Trade Representative (USTR) announced support for extending the deadline to decide whether there should be an extension of the TRIPS Agreement to cover the production and supply of COVID-19 diagnostics and therapeutics. USTR also announced that it will ask the United States International Trade Commission (USITC) to launch an investigation into COVID-19 diagnostics and therapeutics and provide information on market dynamics to help inform the discussion around supply and demand, price points, the relationship between testing and treating, and production and access.
The Michigan Chamber will continue to closely monitor this issue as raises concerns about future forced technology transfer and whether it could become the preferred method of giving foreign competitors access to new technologies.
Contact Wendy Block with questions at wblock@michamber.com.