Letter from Ranil Jayawardena MP to Dr Christos Christou regarding TRIPS waiver

Ranil Jayawardena MP Minister for International Trade King Charles Street Whitehall London SW1A 2AH T +44 (0) 20 7215 5000 E jayawardena.correspondence@trade.gov.uk W gov.uk

Dr Christos Christou International President Médecins Sans Frontières

Our reference: MCSL2021/01772

By email: vickie.hawkins@london.msf.org

18th March 2021 Dear Dr Christou, Thank you for your letter of 12th March, asking HM Government to reconsider her position on the proposal submitted by India and South Africa regarding a waiver for the provisions of the Agreement on the Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement).

As stated at the World Trade Organisation’s (WTO) TRIPS Council sessions since October 2020, HM Government has long-supported affordable and equitable access to vaccines, medicines, diagnostics, and other health technologies as part of an effective COVID-19 response, including in developing countries. While intersections between intellectual property (IP) and health continue to be the subject of debate, the United Kingdom believes that the intellectual property framework can support innovators while enabling equitable access to innovative medical products. A waiver of the TRIPS Agreement would risk undermining this framework’s ability to respond to current – and potentially future – crises.

Considering the evidence available, the United Kingdom is of the position that the waiver would not be an effective option to address the factors on which access to medicines depends. For example, it remains unclear where case-by-case or product-by-product conditions would preclude access to required COVID-19 related technologies and supplies. It also remains unclear how the proposed waiver could operate effectively in practice, given the waiver’s proposed optional implementation into domestic law.

Concerns also remain on non-IP issues – such as domestic capabilities of individual countries.

In particular, the waiver fails to address acquisition, storage, distribution and administration requirements related to the vaccine. It fails to provide solutions for considerations ranging from regulatory approval, training and domestic surveillance, which are essential to ensure effective use of the vaccine too. These issues fall outside the scope of the TRIPS Agreement and the proposal being discussed within the TRIPS Council. Exploring these questions is essential for considering a way forward.

Recently, the United Kingdom and others called upon countries with alleged idle manufacturing capacity capable of producing COVID-19 related products, specifically vaccines, to inform Members of the TRIPS Council to understand how this capacity can be utilised. TRIPS flexibilities are particularly useful for WTO members who do not have the domestic manufacturing capacity to produce medicines and vaccines in their own country. It is the unilateral decision of a country to utilise these flexibilities if they deem so appropriate. It would not be appropriate for the United Kingdom to comment on the relationship between other countries and their practices. We support the use of compulsory licences by countries where necessary and alternative avenues for redress have been consulted. The way in which compulsory licences could be invoked should be based on transparent, non-arbitrary criteria.

The United Kingdom remains committed to the Doha Declaration on Public Health and the TRIPS Agreement, and we have agreed flexibilities that support access to medicines.

We agree that this pandemic means we must use all relevant policy tools to contain, treat, and prevent COVID-19. That is why the United Kingdom is continuing to highlight the important roles of multilateral mechanisms such as COVAX and the Access to COVID-19 Tools Accelerator (ACT-A). The United Kingdom is proud to be a founding donor to ACT-Accelerator and has made commitments to ACT-A partners of up to the equivalent of $1.1 billion. We also strongly support the COVAX Advance Market Commitment for low- and middle-income economies. By participating in the COVAX facility, countries are pooling resources, which maximise everyone's chance of accessing a vaccine. These multilateral mechanisms represent tangible models to commitments that ensure equitable access to any vaccine developed and are one of many tools required for a global response.

The existing intellectual property framework facilitates the entry of new vaccine candidates by supporting innovation. Strong intellectual property rights provide certainty to an investment through safeguarding the value of innovative efforts. The role of funding for the development of vaccine candidates cannot be understated. Public funding has been an element involved in driving COVID-19 R&D, in combination with high levels of private funding. Waiving intellectual property rights risks making returns on investments more difficult, which risks diverting necessary investment away from those involved in developing safe, effective, quality vaccines, potentially delaying global progress. Moreover, as more vaccine candidates become approved and supplies increase, greater competition will result in lower prices.

The safety, quality and efficacy of COVID-19 related technologies and supplies, including vaccines, is of the upmost importance to the United Kingdom. We believe that the intellectual property framework has been and continues to be integral to successes made throughout this pandemic.

The United Kingdom will continue to engage constructively in discussions at the TRIPS Council by remaining committed to evidence-based discussions and solution-orientated thinking.

With best wishes.

Yours sincerely,

RANIL JAYAWARDENA MP Minister for International Trade