India–UK CETA Agreement & IPR: Dilution of India’s Stand on Public Health and Tech Transfer

By: Suryavanshi IAS
For UPSC Aspirants | GS Paper 2 & 3 | With PYQs and Mains Perspective

📰 Why in News?

The India–United Kingdom Comprehensive Economic and Trade Agreement (CETA) contains a controversial clause under its Chapter 13 (Intellectual Property) — specifically Article 13.6:

“The Parties recognise the preferable and optimal route to promote and ensure access to medicines is through voluntary mechanisms, such as voluntary licensing…”

This statement marks a significant shift in India’s long-standing position at international platforms such as the WTO and UN. It weakens India’s commitment to:

Compulsory Licensing (CL) as a tool for ensuring affordable medicines.
Technology transfer on favourable terms to developing countries.

📚 Relevance to UPSC Syllabus

Paper	Topic	Sub-topic
GS Paper 2	International Relations	India’s trade agreements, IPR, public health obligations
GS Paper 2	Governance	Government policy on healthcare, access to medicines
GS Paper 3	Economy	WTO, TRIPS, IPR, pharma sector, compulsory licensing
GS Paper 3	Science & Technology	IPR in biotechnology, tech transfer, climate change mitigation

🧪 Compulsory vs Voluntary Licensing: India's Position

✅ Compulsory Licensing (CL)

Granted by government to a third party to produce a patented product without the patent holder’s consent in the public interest.
Section 84 of the Indian Patents Act permits CL if:
- Public requirements are unmet.
- Drug is priced unreasonably.
- Patent is not “worked” (commercially utilized) in India.

🩺 Example: In 2012, Natco Pharma was granted a CL to produce Bayer’s costly cancer drug sorafenib tosylate, reducing monthly cost from ₹2.8 lakh to under ₹9,000.

❌ Voluntary Licensing (VL)

Patent holders voluntarily allow others to manufacture their drugs but with restrictions:
- Control over supply chains
- Geographic limits
- Technology secrecy

🧪 Example: Gilead’s voluntary license to Cipla for Remdesivir (during COVID) resulted in higher price in India (PPP terms) than in the U.S., exposing VL's shortcomings.

⚖️ TRIPS and the Doha Declaration

2001 Doha Declaration on TRIPS and Public Health reaffirmed every WTO member’s right to issue CLs.
India was a leading advocate for this flexibility, opposing pressure from advanced countries.
CETA undermines this position by implying VL is the preferred option, limiting India’s future negotiating strength.

🌐 Tech Transfer: From NIEO to Climate Agreements

India has historically demanded technology transfer on favourable terms:

1974 NIEO (New International Economic Order) by UNGA: First raised demand for free/affordable access to technology by developing countries.
India’s Fourth Biennial Update Report to UNFCCC (2024) lamented:

“Slow international technology transfer and IPR barriers hinder rapid adoption of climate-friendly technologies.”

By agreeing to Article 13.6, India’s moral and legal authority to demand such transfers is weakened, particularly in climate negotiations.

🧠 Mains Linkages

GS Paper 2:

Impact of FTAs on India’s public health policy.
International forums, IPR obligations vs. domestic needs.

GS Paper 3:

Biotechnology and public health.
Compulsory Licensing: A tool for social justice?
Tech transfer & climate change mitigation.

📝 Mains Practice Questions

GS Paper 2 (250 words):

“Evaluate the impact of FTAs like CETA on India’s ability to ensure affordable healthcare and uphold public health obligations.”

GS Paper 3 (250 words):

“Compare Compulsory Licensing and Voluntary Licensing in the context of access to affordable medicines. Which is more suitable for developing countries?”

🧾 Prelims PYQs (Last 8 Years)

❓ Q1. What is the objective of the TRIPS Agreement? (UPSC Prelims 2017)

a) To protect Intellectual Property Rights globally

b) To provide free medicines to developing countries

c) To eliminate subsidies in agriculture

d) To promote trade barriers

✅ Answer: a)

Explanation: TRIPS (Trade-Related Aspects of IPR) is an agreement under WTO aimed at establishing common IPR standards worldwide.

❓ Q2. Regarding the Doha Declaration on TRIPS and Public Health, consider the following: (UPSC Prelims 2020)

It affirmed that WTO members can issue compulsory licenses.
It conflicts with the TRIPS Agreement.

a) Only 1

b) Only 2

c) Both 1 and 2

d) Neither 1 nor 2

✅ Answer: a)

Explanation: The Doha Declaration clarified that TRIPS supports CL during public health emergencies; there is no contradiction.

❓ Q3. What is the objective of India’s IPR policy? (UPSC Prelims 2016)

a) To promote protection of intellectual property

b) To encourage innovation

c) To support ease of doing business

d) All of the above

✅ Answer: d)

Explanation: India’s IPR policy aims to promote innovation, protect creators, and attract foreign investment through strong IP systems.

🧭 Summary

India–UK CETA weakens India’s long-standing stance on Compulsory Licensing and tech transfer.
By supporting Voluntary Licensing, India risks higher drug prices and limited autonomy in public health decisions.
The dilution in India’s IPR strategy can also impact climate negotiations and technology access for sustainable development.

🧠 Keywords for Revision

TRIPS Agreement
Doha Declaration
Compulsory Licensing
Voluntary Licensing
New International Economic Order (NIEO)
Technology Transfer
Patents Act, 1970
Remdesivir, Sorafenib Tosylate
WTO & Public Health
FTAs and IPR clauses

📍 Suryavanshi IAS Tip for UPSC 2025:

Focus on the intersection of international agreements and domestic laws.
Revise TRIPS + Doha Declaration + IPR policy + Health Schemes for Prelims & Mains.
Use recent examples (e.g., Remdesivir, Natco case) in answers for value addition.

Suryavanshi IAS

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