WTO asks India to stick to deadline on patents

The World Trade Organisation (WTO) on Monday said India should adhere to the deadline of January 1, 2005, for introduction of a product patent regime by bringing in necessary legislation to amend its intellectual property rights law. WTO Director General Supachai Panitchpakdi also cautioned India against bilaterals in the form of regional trade agreements (RTAs) and free trade agreements (FTAs). WTO will be instituting a mechanism for monitoring them to see if they contributed to the multilateral process, he said at the India Economic Summit.

Supachai said it is for the benefit of India and its strong pharmaceutical industry that the country should adhere to the deadline. Asked if the deadline could be extended for India as it appears that the proposed legislation may not be passed in the short winter session of Parliament, Supachai said it was up to the member countries to take a view and for this case India can have consultation with other member countries.

However, he said such extensions are rare. “We do not encourage it. We do not recommend delay of such laws”.

Concerned over India’s recent efforts to go in for FTAs and RTAs, (Saarc, Singpaore etc), Supachai said multilateralism must get priority over such agreements. In support, he said studies have shown that these agreements brought down tariffs only by about 10 per cent compared to 25 per cent by WTO. Pointing that multiple rules of origin and tariff lines can be both confusing and costly, Supachai said it was in India’s interest to spend the same energy in promoting multilateralism. “Early conclusion of Doha round would result in larger benefits.” Supachai quoted Professor Jagdish Bhagwati as terming ‘foolish’ India’s RTA and FTA efforts.