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GS Paper: GS2

  • India and EU relaunch FTA talks, sign connectivity partnership

    Resumption of FTA

    • Prime Minister of India interacted virtually from Delhi with EU chiefs.
    • India and the European Union agreed to relaunch free trade negotiations by resuming talks that were suspended in 2013 for the Bilateral Trade and Investment Agreement (BTIA).
    • The talks had run into trouble over market access issues, and tariffs by India on products like wine, dairy and automotive parts, as well as EU resistance over visas for Indian professionals.
    • In addition, Indian government’s decision to scrap all Bilateral Investment Treaties (BITs) in 2015 posed hurdles for new EU investments in India.

    Connectivity Partnership document

    • The EU-India leaders adopted a Connectivity Partnership document.
    • The India-EU connectivity partnership committed the two sides to working together on digital, energy, transport, people to people connectivity.
    • The partnership is seen as a response to China’s Belt and Road Initiative, and comes as the EU’s negotiations with China on their Comprehensive Agreement on Investment (CAI) have run into trouble.
    • The contract for the second tranche of $150 million from the EU for the Pune Metro rail project was also signed.

    No EU support for Covid-19 vaccine waiver

    • India failed to secure the support of the European leaders for patent waivers for Covid vaccine.
    • The support of a major bloc like the EU is crucial to passing the resolution at the WTO by consensus.

  • What patent waiver in the COVID fight mean for global health equity

    The article highlights the implications of patent waiver for Covid-19 for global health equity.

    Where the opposition to waiver proposal came from

    • Recently, the US agreed to support the India-South Africa proposal, seeking a waiver of patent protection for technologies needed to combat and contain COVID-19.
    • Response to the proposal was divided during earlier debates at the WTO.
    • While many low and middle income countries supported it, resistance came from the U.S., the United Kingdom, the European Union, Switzerland, Australia and Japan.
    • Since the WTO operates on consensus rather than by voting, the proposal did not advance despite drawing support of over 60 countries.
    • Predictably, the pharmaceutical industry fiercely opposed it and vigorously lobbied many governments.
    • Right-wing political groups in the high income countries sided with the industry.

    Issues with the reasons given for opposition to the waiver proposal

    1) Quality and safety of vaccine production in low and middle-income countries

    • It was argued that the capacity for producing vaccines of assured quality and safety was limited to some laboratories.
    • So, it is argued that it would be hazardous to permit manufacturers in low and middle-income countries.
    • However, pharmaceutical manufacturers have no reservations about contracting industries in those countries to manufacture their patent-protected vaccines for the global market.

    2) Licenced manufacturing

    • The counter to patent waiver is an offer to license manufacturers in developing countries while retaining patent rights.
    • This restricts the opportunity for production to a chosen few.
    • The terms of those agreements are opaque and offer no assurance of equity in access to the products at affordable prices, either to the country of manufacture or to other developing countries.

    3) Supplying vaccines through COVAX facility

    • It was also stated that developing countries could be supplied vaccines through the COVAX facility, set up by several international agencies and donors.
    • While well-intended, it has fallen far short of promised delivery.
    • Some U.S. states have received more vaccines than entire Africa has from COVAX.

    4) No availability of extra capacity for vaccine production

    • Critics of a patent waiver say there is no evidence that extra capacity exists for producing vaccines outside of firms undertaking them now.
    • Even before the change in the U.S.’s position, manufacturers from many countries expressed their readiness and avidly sought opportunities to produce the approved vaccines.
    • They included industries in Canada and South Korea, suggesting that capable manufacturers in high income countries too are ready to avail of patent waivers but are not being allowed to enter a restricted circle.
    • The World Health Organization’s mRNA vaccine technology transfer hub has already drawn interest from over 50 firms.
    • Instead of arguing that capacity is limited, high-income countries and other donors should be supporting the growth of more capacity to meet the current and likely future pandemic.
    • They should learn from the manner in which India built up capacity and gained a reputation as a respected global pharmacy by moving from product patenting to process patenting between 1970 and 2005.

    5) Time required to utilise patented technology is long

    • Patent waivers are also dismissed as useless on the grounds that the time taken for their utilisation by new firms will be too long to help combat the present pandemic.
    • But many countries have low vaccination rates and variants are gleefully emerging from unprotected populations.
    • This makes it difficult to put the end date for the pandemic to end

    6) China factor

    • An argument put forth by multinational pharmaceutical firms is that a breach in the patent barricade will allow China to steal their technologies, now and in the future.
    • The original genomic sequence was openly shared by China, which gave these firms a head start in developing vaccines.

    Issue of rewarding innovation financially

    • Much of the foundational science that built the path for vaccine production came from public-funded universities and research institutes.
    • Further, what use is it to hold on to patents when global health and the global economy are devastated?
    • It is often argued that for defending patent protection, is that innovation and investment by industry need to be financially rewarded to incentivise them to develop new products.
    • Even if compulsory licences are issued bypassing patent restrictions, royalties are paid to the original innovators and patent holders.

    Way forward

    • Developing countries must take heart from his gesture and start issuing compulsory licences.
    • The Doha declaration on TRIPS flexibilities permits their use in a public health emergency.
    • High-income countries and multilateral agencies should provide financial and technical support to enable expansion of global production capacity.

    Consider the question “Why are the implications of patent waiver for Covid-19 vaccine for the global health equity? What were the reasons for opposition to waiver proposal?” 

    Conclusion

    The U.S.-supported patent waiver in the COVID fight has the potential to bring in much-needed global health equity.

  • Section 142 of the Social Security Code – 2020 Notified

    Aadhaar mandatory

    • The Union government has made Aadhaar mandatory for availing social security benefits, and for registration on a national informal workers’ database being developed for migrants.
    • The labour ministry has notified section 142 of the social security code.
    • It allows authorities to collect Aadhaar details for the database of beneficiaries under various social security schemes.
    • The move will be applicable to both formal and informal workers and may also help in curbing duplication of data by keeping imposters at bay, authorities said.
    • However, people who don’t have Aadhaar will not be denied of benefits, the ministry claims.

    National informal workers’ database

    •  National database for unorganized workers is at an advanced stage of development by National Informatics Centre.
    • The portal is aimed at collection of data for unorganized workers, including migrant workers for the purpose of giving benefits of the various schemes of the government.
    • An inter-state migrant worker can register himself on the portal on the basis of submission of Aadhaar alone.

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    BACK2BASICS

    • The Code on Social Security, 2020 is a code to amend and consolidate the laws relating to social security with the goal to extend social security to all employees and workers either in the organised or unorganised or any other sectors.
    • The Social Security Code, 2020 brings unorganised sector, gig workers and platform workers under the ambit of social security schemes, including life insurance and disability insurance, health and maternity benefits, provident fund and skill upgradation, etc. The act amalgamates 9 central labour enactments relating to social security.
    • To access complete Act, you can click on the link given below:

    https://labour.gov.in/sites/default/files/SS_Code_Gazette.pdf

  • U.S. to support intellectual property waiver for COVID-19 vaccines

    US in support of TRIPS waiver

    • The United States announced its support to an initiative at the World Trade Organisation (WTO) to waive Trade Related Intellectual Property Rights (TRIPS) protection for COVID-19 vaccines.
    • The initiative was first floated by India and South Africa last October.
    • Over a 100 countries have supported the proposal, according to the Associated Press.

    Opposition to the move

    • Among the arguments proffered to retain IP protection are that biotech jobs will be transferred from the U.S. to foreign countries and that waiving IP still not does overcome bottlenecks like manufacturing capacity.
    • Twelve Republican Members of Congress wrote to Mr. Biden on Tuesday urging him to consider other means to increase vaccine access that did not involve weaking IP protections.
    • Weakening protections would hamper American competitiveness and innovation, they said.

  • [pib] Kerala presents its Annual Action plan under Jal Jeevan Mission

    Annual Action Plan presented

    • Annual Action Plan (AAP) on planning and implementation of Jal Jeevan Mission (JJM) in Kerala was presented.
    • Kerala State officials outlined the roadmap of the financial year 2021-2022 to the national committee via video conferencing.
    • The State plans to achieve the target of ‘Har Ghar Jal’ by 2024.
    • The State also plans to provide potable water in all quality-affected habitations by June 2021 through piped water supply or Community Water Purification Plants (CWPP).
    • The national committee analysed and advised on the plan presented by the State.
    • The committee emphasized the preparation of Village Action Plans and the constitution of Village Water &Sanitation Committee/ Pani Samiti as a sub-committee of Gram Panchayat with a minimum 50% of women members.
    • Also, emphasis is required on Water Quality Monitoring & Surveillance (WQM&S) activities to ensure Field Test Kit testing at Gram Panchayat level, Aanganwadi centres and schools.

    About Jal Jeevan Mission

    • Jal Jeevan Mission is the flagship programme of Government of India, which aims to provide household tap water connection to every rural household by 2024.
    • Since announcement of the mission in August 2019, 4.17 Core new tap connections have been provided in the rural areas of the country during this period.
    • As a result, 7.40 Crore (38.56%) rural households have tap water supply vis-à-vis 3.23 Crore (17%) in 2019.
    •  Efforts are made to dovetail all available resources by convergence of different programmes viz. MGNREGS, SBM, 15th Finance Commission Grants to PRIs, CAMPA funds, Local Area Development Funds, etc.

    Allocation for the JJM

    •  In 2021-22, Rs. 50,000 Crore budgetary allocation has been made for Jal Jeevan Mission.
    • In addition to this, there is also Rs. 26,940 Crore assured fund available under the 15th Finance Commission tied grants to RLBs/ PRIs for water & sanitation, matching State share and externally aided projects.
    • Thus, in 2021-22, more than Rs. 1 lakh Crore is planned to be invested in the country on ensuring tap water supply to rural homes.
    • This huge investment will give a boost to manufacturing activities, create employment opportunities in rural areas as well boost the rural economy.

  • The vaccine patent row

    What is the vaccine patent row about?

    • Medicines and other inventions are covered by patents which provide legal protection against being copied, and vaccines are no exception.
    • Patents give makers the rights to their discoveries as well as the means to make more money from them – which is an incentive to encourage innovation.
    • But these are not normal times.
    • Last autumn, developing nations led by India and South Africa proposed to the World Trade Organization (WTO) that the patents on vaccinations and other Covid-related items should be waived.
    • They argued that, given the extreme nature of the pandemic, the recipe for the life-saving jabs should be made widely available so they could be produced locally in bulk by other manufacturers.

    What’s the problem?

    • The proposals were met with immediate criticism from pharmaceutical companies and Western nations including the EU, UK and the US.
    • The obvious objection to lifting patents is that it could erode revenue and deter innovation.

    So, does this just come down to money?

    • The key argument from vaccine producers and their home countries is that waiving patents alone wouldn’t solve much. It would, they say, be like handing out a recipe without the ingredients or instructions.
    • The patent covers the bare bones of the blue print but not the precise production process. That’s crucial here. Vaccines of the mRNA type – such as Pfizer and Moderna – are a new breed and only a small number of people understand how to make them.
    • BioNTech, the German company which partnered with Pfizer, have said that developing the manufacturing process took a decade and validating production sites can take up to a year. The availability of the raw materials needed has also been an issue.
    • Industry bodies fear that without access to all the know-how and parts, a waiver could result in quality, safety and efficacy issues and possibly even counterfeits. They point out that Moderna has already said it would not prosecute those found to be infringing their patent – but no one has yet.

    What’s the alternative?

    • The EU says it is ready to talk, but it previously said the best short-term fix would be supply chain improvements and pushing richer countries to export more jabs.
    • The UK says it is one of the biggest donors to Covax, which is masterminding the rollout of vaccines to many poorer countries. It also favours voluntary licensing – such as collaborations between the Serum Institute of India and Oxford-AstraZeneca. It wants the WTO, which oversees the rules on global trade, to support more partnerships.
    • The WTO system allows for this licensing arrangement to go even further. Governments can impose compulsory licenses on vaccine makers, compelling them to share their know-how and overseeing the production process along the way. But those pharmaceutical companies would have to be compensated for doing so.

    Why did the US change its mind?

    The announcement came after the US Trade Representative Katharine Tai held meetings with the big vaccine makers in an effort to supercharge vaccine production.

    What happens next?

    • Now the discussions will continue at the WTO where decisions are made by consensus.
    • Without the backing of other key nations, the proposals may stall. But they may pave the way to a compromise that could boost production.
    • The key question is when – and by how much.

    Support grows for IP waiver

    • Attention is now turning to those richer nations, notably in the European Union — and France was the first to voice its support.
    • France joined the United States in supporting an easing of patent and other protections on COVID-19 vaccines that could help poorer countries get more doses and speed the end of the pandemic.
    • Russian President Vladimir Putin also said he supported the idea of a waiver on patent protections for coronavirus vaccines.

     

  • [pib] India-UK virtual summit strengthens STI cooperation

    Enhance partnership in science, education, research and innovation

    • The Prime Minister of India and the UK  met virtually on 4 May 2021 and emphasised their shared commitment to an enhanced partnership in science, education, research and innovation.
    • In keeping with this commitment, both the leaders welcomed the following:
    • The new MoU on Telecommunications/ICT and the Joint Declaration of Intent on Digital and Technology.
    • There was also the establishment of new high-level dialogues on tech.
    • A new joint rapid research investment into Covid19.
    • A new partnership to support zoonotic research,
    • New investment to advance understanding of weather and climate science.
    • There will be continuation of the UK-India Education and Research Initiative (UKIERI).

    Key points to strengthen STI cooperation

    • Enhance cooperation between India and the UK on strengthening the role of women in STEM at schools, universities, and research institutions through initiatives like Gender Advancement for Transforming Institutions (GATI) project.
    • Develop collaborations between Industry, Academia and the Government to foster innovation among school students by focusing on teacher training, mentoring and sharing of global best practices through initiatives like the India Innovation Competency Enhancement Program (IICEP)
    • Build on the two countries’ existing bilateral research, science and innovation infrastructure and governmental relationships to continue to support high-quality, high-impact research and innovation through joint processes.
    • Forge partnership across the pipeline of research and innovation activity, from basic research to applied and interdisciplinary research.
    • Leverage and build on existing, long-standing bilateral partnerships such as on education, research and innovation, to stimulate a joint pipeline of talent, excellent researchers and early-career innovators.
    • Work together to share knowledge and expertise regarding artificial intelligence, scientific support to policies and regulatory aspects including ethics, and promote a dialogue in research and innovation.
    • Through Tech Summits, bring together tech innovators, scientists, entrepreneurs and policy makers to work together on challenges including the norms and governance of future tech under the cross-cutting theme of ‘data’.
    •  Grow programmes such as the Fast Track Start-Up Fund to nurture innovation-led, sustainable growth and jobs, and tech solutions that benefit both countries.

  • What the easing of IP norms on Covid vaccines means for India

    Background of waiver proposal

    • U.S. President Joe Biden’s administration announced its support for waiving intellectual property protections for COVID-19 vaccines.
    • Following the onset of the pandemic, the World Health Organisation proposed a COVID-technology access pool as a knowledge sharing initiative to rapidly scale up vaccine output around the world.
    • As vaccine research progressed last year, wealthy and advanced countries, placed huge advance purchase orders for vaccines.
    • This meant that smaller, developing countries would take longer to get vaccines and find resources to pay for them.
    • In October 2020, India and South Africa floated a proposal at the World Trade Organisation’s TRIPS (Trade-Related Aspects of Intellectual Property Rights) Council to waive certain provisions of the WTO’s TRIPS pact till the pandemic subsides.
    • The proposal envisaged facilitating wider access to technologies necessary for the production of vaccines and medicines.
    • While a majority of the least developed countries backed the proposal, some like China, Turkey and Thailand sought more clarity.
    • However, the proposal was nixed with the E.U., the U.S., Switzerland, Norway, Australia, Canada, Japan and the U.K. rejecting it outright, along with Brazil.
    • Among other things, the argument was that such waivers could dampen innovation and research in areas such as pharmaceuticals and diagnostic technologies.

    What next

    • The WTO’s TRIPS Council is tentatively expected to hold a meeting on the waiver proposal again later this month.
    • If and when an agreement is reached here, the WTO’s Ministerial Council will also have to sign off.
    • Since WTO decisions are based on consensus, all 164 members need to agree on every single aspect of the negotiated waivers and conditions attached.

    Way forward for India

    • The Centre can take two steps immediately in consonance with its stance at the WTO, following the U.S.’ statement of support.
    • The Union government must issue notification under Sections 92 and 100 of the Patents Act to freely licence all patents necessary for vaccine and drug production to treat COVID-19.
    • Issues of the amount of royalties can be decided in due course as laid out in the Patents Act, but that should not come in the way of immediate licensing by the government.
    • The government need to provide full support to companies to scale up vaccine production.
    • Indian industry has a well-respected expertise and capability to rapidly manufacture raw materials, consumables and equipment necessary to produce drugs, vaccines, medical devices and equipment if Intellectual Property barriers are removed.

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    BACK2BASICS

    • COVID-19 Technology Access Pool (C-TAP) will compile, in one place, pledges of commitment made under the Solidarity Call to Action to voluntarily share COVID-19 health technology-related knowledge, intellectual property and data. C-TAP works through its implementing partners, the Medicines Patent Pool, Open COVID Pledge, UN Technology Bank-hosted Technology Access Partnership and Unitaid to facilitate timely, equitable and affordable access to COVID-19 health technologies.

    Understand how the story has progressed:

    India seeks TRIPS waiver for Vaccines

    How IPR served as barrier to the right to access healthcare

  • Reading Maratha quota verdict

    • A five-judge Constitution Bench of the Supreme Court on Wednesday struck down the Maharashtra law granting reservation to the Maratha community.
    • The court had framed six questions of law on the issue.
    • The court unanimously agreed on three of those issues, while the verdict was split 3:2 on the other three.

    Issue 1:  Whether Indra Sawhney judgment needs to be revisited

    • One of the key issues was to examine whether the 1992 landmark ruling by the nine-judge bench in Indra Sawhney v Union of India had to be revisited.
    • First, it said that the criteria for a group to qualify for reservation is “social and educational backwardness”.
    • Second, it reiterated the 50% limit to vertical quotas reasoning that it was needed to ensure “efficiency” in administration.
    • However, the court said that this 50% limit will apply unless in “exceptional circumstances”.
    • The Maratha quota exceeded the 50% ceiling. 
    • The arguments by state governments before the court was that the Indra Sawhney verdict must be referred to a 11-judge Bench for reconsideration since it laid down an arbitrary ceiling which the Constitution does not envisage.
    • The court said that the 50% ceiling, although an arbitrary determination by the court in 1992, is now constitutionally recognized and held that there is no need to revisit the case.

    Issue 2 and 3: Does Maratha quota law come under exceptional circumstances

    • The state government’s argument was that since the population of backward class is 85% and reservation limit is only 50%, an increase in reservation limit would qualify as an extraordinary circumstance.
    • All five judges disagreed with this argument.
    • The bench ruled that the above situation is not extraordinary.

    Issue 4,5 and 6: Validity of 102nd Amendment

    • The Constitution (One Hundred and Second Amendment) Act, 2018 gives constitutional status to the National Backward Classes Commission.
    • The Amendment also gives the President powers to notify backward classes.
    • The Bench unanimously upheld the constitutional validity of the 102nd Amendment but differed on the question of whether it affected the power of states to identify socially and economically backward classes (SEBCs).
    • Attorney General, appearing for the central government, clarified that this was not the intention of the law.
    • The Attorney General argued that it is inconceivable that no State shall have the power to identify backward class”.
    • The Attorney General explained that the state government will have their separate list of SEBCs for providing reservations in state government jobs and education.
    • The Parliament will only make the central list of SEBCs which would apply for central government jobs.
    • However, the Supreme Court held that “the final say in regard to inclusion or exclusion (or modification of lists) of SEBCs is firstly with the President, and thereafter, in case of modification or exclusion from the lists initially published, with the Parliament”.
    • This raises a question: How does this impact interventions by other states to provide reservations for other communities, for example Jats in Haryana and Kapus in Andhra?
    • The majority opinion essentially says that now the National Backward Classes Commission must publish a fresh list of SEBCs, both for states and the central list.
    • The Supreme Court also issued a direction under Article 142 of the Constitution of India which says that till the publication of the fresh list the existing lists will continue to operate.

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    BACK2BASICS

    • National Commission for Backward Classes is a constitutional body (102nd amendment 2018 in the constitution to make it a constitutional body) (Article 338B of the Indian Constitution).
    • It was constituted pursuant to the provisions of the National Commission for Backward Classes Act, 1993.
    • According to Article 338B, Commission shall consist of a Chairperson, Vice-Chairperson and three other Members and the conditions of service and tenure of office of the Chairperson, Vice-Chairperson and other Members so appointed shall be such as the President may by rule determine. The Chairperson, Vice-Chairperson and other Members of the Commission shall be appointed by the President by warrant under his hand and seal.

  • Supreme Court struck down law for reservation to Maratha community

    About the judgment

    • The Supreme Court on Wednesday struck down the provisions of a Maharashtra law providing reservation to the Maratha community.
    • It rejected demands to revisit the verdict or to refer it to a larger Bench for reconsideration.

    What the Supreme Court said

    • The Bench said that “providing reservation for the advancement of any socially and educationally backward class in public services is not the only means and method for improving the welfare of backward class”
    • The 50% rule is to fulfill the objective of equality as engrafted in Article 14 of which Articles 15 and 16 are facets.
    • To change the 50% limit is to have a society that is not founded on equality but based on caste rule.
    • If the reservation goes above the 50% limit, it will be a slippery slope, the political pressure, make it hard to reduce the same.
    • It added that “the Constitution (Eighty-first Amendment) Act, 2000 by which sub-clause (4B) was inserted in Article 16 makes it clear that ceiling of 50% “has now received constitutional recognition”
    • The Supreme Court disapproved the findings of the Justice M G Gaikwad Commission on the basis of which Marathas were classified as a Socially and Educationally Backward Class.
    • It said that “the data collected and tabled by the Commission as noted in the report clearly proves that Marathas are not socially and educationally backward class”.

    SC upheld 102nd Constitution amendment

    • The SC also upheld the 102nd Constitution amendment, saying it does not violate the basic structure of the Constitution.
    • The bench, by 3:2 majority, held that after the amendment, only the President will have the power to identify backward classes in a state or Union Territory.
    • The amendment inserted Articles 338B and 342A in the Constitution.
    • Article 338B deals with the structure, duties and powers of the National Commission for Backward Classes.
    • Article 342A speaks about the power of the President to notify a class as Socially and Educationally Backward (SEBC) and the power of Parliament to alter the Central SEBC list. He can do this in consultation with Governor of the concerned State. However, law enacted by Parliament will be required if the list of backward classes is to be amended.

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    BACK2BASICS

    • 102nd Constitution Amendment Act, 2018 provides constitutional status to the National Commission for Backward Classes (NCBC).
    • The Commission consists of five members including a Chairperson, Vice-Chairperson and three other Members appointed by the President by warrant under his hand and seal. It has the authority to examine complaints and welfare measures regarding socially and educationally backward classes.
    • Previously NCBC was a statutory body under the Ministry of Social Justice and Empowerment.