UK trade pact doesn’t restrict India’s use of compulsory licensing in any form

New Delhi, Dec 13
Robust safeguards are built into the India–UK Comprehensive Economic and Trade Agreement (CETA) to fully preserve India’s policy autonomy on compulsory licensing, including during public health emergencies, according to the government.

The CETA reaffirms the rights of both parties to utilise all flexibilities available under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement, including compulsory licensing under "Articles 31 and 31bis".

“This preserves India’s discretion to act in the public interest without additional conditions. India’s powers under Section 84 (general compulsory licensing) and Section 92 (compulsory licensing in public health emergencies) of the Patents Act, 1970 remain fully intact. The CETA does not require any amendment or dilution of these provisions,” informed Jitin Prasada, Minister of State for Commerce and Industry in Rajya Sabha.

He further stated that the agreement does not restrict India’s use of Compulsory Licensing in any form.

“The agreement does not introduce any procedural delays, prior negotiation requirements, or additional thresholds that could restrict the issuance of compulsory licenses,” the minister added.

India gains guaranteed, non-discriminatory access to the UK's public procurement market, which is valued at over 90 billion pounds (approximately $122 billion) annually, including key entities like the National Health Service (NHS).

This is a massive opportunity for Indian companies, particularly in IT, pharmaceuticals, and services. Further, allowing foreign competition, albeit under controlled thresholds and categories, can increase competition, drive down costs, and lead to better value, quality, and technology adoption in government projects, said Prasada.

Furthermore, with respect to Market Access commitments, the UK has agreed for asymmetric thresholds for goods and services in favour of India wherein UK's thresholds for goods and services would be Special Drawing Rights (SDR) 130,000 while India would have a higher threshold of SDR 450,000 for goods and services.

For the first time, the UK agreed to dilute several key provisions which are part of the World Trade Organisation Government Procurement Agreement as well as their other Free Trade Agreements (FTAs).