1. Intellectual Property Rights, Services and Trade Facilitation CARSTEN FINK African/LDCs Ambassadors Seminar on Post-Hong Kong Assessment of the Doha Round, March 13, 2006

2. Overview What are the main negotiating issues? What happened in Hong Kong? Main implications for African and Least Developed Countries

3. Intellectual Property Rights The Uruguay Round produced the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Two key issues in the DDA: The TRIPS Agreement and Public Health Extension of the implementation deadline for LDCs

4. TRIPS and Public Health: History TRIPS obliges WTO members to protect pharmaceutical patents for 20 years But leaves some flexibilities: Transition period for developing countries until January 1, 2005 Transition period for least developed countries until January 1, 2006 Possibility of compulsory licensing

5. Doha Declaration (2001) Background: Spreading HIV/AIDS pandemic in large parts of the developing world General concern that there may be conflicts between TRIPS and public health objectives Content: Confirms TRIPS flexibilities (political endorsement) Extension of implementation deadlines for LDCs Unresolved issue: compulsory licensing when manufacturing capacity is insufficient

6. TRIPS Amendment (2005) Problem: Legal uncertainty to what extent generic versions of patented drugs can be exported August 2003 Decision/TRIPS Amendment: Certain TRIPS provisions are waived if importing country has established that it has insufficient manufacturing capacities Safeguards and reporting requirements

7. Implications Substantial, legally secure flexibilities now exist at the WTO So far, not heavily used Cases of CL: Mozambique and Zambia No use made of August 2003 Decision/TRIPS amendment Significance bound to increase, as newly patented medicines are marketed Importance of incorporating multilateral flexibilities into national laws

8. Extension of LDC deadline (For TRIPS obligations, other than pharmaceuticals) Pre-Hong Kong Decision to extend LDC deadline to provide protection for patents, copyright, trademarks, and other forms of IPRs until July 1, 2013 But: obligation not to reduce or withdraw existing levels of protection Promise of enhanced technical cooperation

9. Implications Affords LDCs some breathing space How relevant? Several LDCs already have TRIPS compliant laws The biggest challenges exist in the area of IPRs enforcement Again: multilateral flexibilities need to be incorporated into national laws

10. Trade in Services: History Uruguay Round established General Agreement on Trade in Services (GATS), but produced little liberalization Some liberalization achieved in sectoral negotiations: Telecommunications (1996) Financial services (1998)

11. DDA negotiations in services Negotiating modality: bilateral requests and offers Before Hong Kong: 69 initial offers and 30 revised offers Perception: little, if any, new liberalization In the run-up to Hong Kong, more attention was paid to services negotiations

12. Hong Kong text (Annex C) Opens the door for plurilateral negotiations, new timeline LDC provisions: Special priority to sectors and modes of supply of interest to LDCs Targeted and effective technical assistance to participate in the services negotiations LDCs are not expected to undertake new commitments

13. Implications Plurilateral negotiating process under way No obligation for LDCs to participate, but can commitments help advance domestic reforms? Export interests: Temporary movement of individual service providers (“Mode 4”) Encounter political sensitivities in developed countries LDC interests do not necessarily correspond to those of developing countries (e.g., India)

14. Trade facilitation New issue in the DDA Mandate: Clarify and improve existing WTO rules “… with a view to further expediting the movement, release and clearance of goods, including goods in transit.” “Negotiations shall also aim at enhancing technical assistance support for capacity building in this area.”

15. Key trade issue for Africa Average number of days to clear customs for sea cargo Source: International Exhibition Logistics Associates, based on a sample of countries in each region (http://www.icla.org)

16. Hong Kong text (Annex E) List of proposed measures to improve and clarify existing WTO provisions Language on: Special and differential treatment provisions that allow for the necessary implementation flexibility Support for technical assistance to implement the results of the negotiations

17. Implications Much of the reform agenda is domestic Still, a multilateral agreement on trade facilitation can be helpful in: Advancing domestic reforms Mobilizing donor assistance (see the “aid for trade” discussion)