It鈥檚 a sign of the times that the United States is supporting intellectual property at the World Health Organization (WHO), while retreating from it at the World Trade Organization (WTO). The Biden administration should strongly oppose waivers of intellectual property at both institutions.
Since December 2021, the WHO has been at work on a legally binding instrument referred to as the . In 2022, an early was circulated, much of which carried over into the now being debated by member states. The goal is to .
The raises two concerns about trade. First, it notes health policies shouldn鈥檛 be used for protectionist purposes. Second, it recognizes that intellectual property rights encourage investment in new medical products, but it fears these rights have negative effects on prices. The text does not say how to deal with the first concern, but it鈥檚 quick to provide a solution for the second: 鈥渨aive鈥 patents.
Article 11 notes there are already 鈥渇lexibilities鈥 under the WTO鈥檚 (TRIPs). For example, TRIPs allows (CLs) to be issued on patented drugs during a public health emergency. To fight COVID, the WTO decided to make it even easier to use CLs on vaccines for five years. This so-called hasn鈥檛 been used, but the WHO clearly sees it as a model for more future 鈥渢ime-bound waivers.鈥
This would be a mistake. Such waivers will only serve to chill innovation. Under the TRIPs waiver, for example, companies that make COVID-related medications and diagnostics have seen their stock prices drop by 73% more than companies working in other therapeutic fields. The problem is exacerbated by the fact that the WTO is whether to expand the waiver to include diagnostics and therapeutics, despite a lack of consensus on which technologies would fall under these categories.
When WHO members to discuss the text, the US argued for intellectual property with clarity and conviction.[1] said, 鈥淓liminating intellectual property protections will not effectively improve equitable access during pandemic emergencies and will in fact harm the systems that have served us well in the past.鈥 Along the same lines, the European Union鈥檚 negotiator[2] explained that 鈥淲e have strong reservations against 鈥 how some provisions have been drafted, in particular those related to intellectual property rights 鈥︹赌
Meanwhile, at the WTO, Ambassador Katherine Tai argued the opposite. She supported the TRIPs waiver without doing due diligence. She asked the US International Trade Commission to examine the pros and cons of an expanded waiver, but her largely ignored the question of how intellectual property incentivizes innovation. And her office has recently to the abuses of CLs by foreign governments, dropping any mention of these from the 2023 Special 301 Report.
This has put the US at odds with several of its most important trade partners. The European Union, for example, what Hamamoto argued at the WHO: namely, that without intellectual property, there would be nothing to copy under CLs. Mexico and Switzerland have been even more pointedly succinct, that 鈥渘o adjustments to the IP system seem to be required鈥 to fight COVID.
It's more than a little ironic that the US makes the right argument about intellectual property in front of a global health institution, and the wrong argument about the very same topic at a trade institution.
Intellectual property put COVID largely in the rearview mirror. The Biden administration鈥檚 health and trade policies must clarify, rather than confuse, this lesson.
[1] Part I at
[2] Part II at
Author

Karl F. Landegger Professor of International Business Diplomacy at the Edmund A. Walsh School of Foreign Service at Georgetown University
Wahba Institute for Strategic Competition
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The Market鈥檚 Response to the TRIPs Waiver

