Us To Mount Pressure On Patents Issue

The office of the United States Trade Representative (USTR) is planning a visit to India early next month to take up issues related to the Patents Bill, India's balance of payments position and telecommunications.

The government had recently made it clear to the US that the introduction of the amended patents bill will have to wait till the November session of Parliament. But the US was not too pleased with this and had in a way said that November will have to be the outer deadline, sources in the government said.

The proposed visit by the USTR is being perceived as yet another form of pressure tactic by the US. This will follow the visit of the assistant secretary of commerce around mid-September who is also expected to discuss some of these issues with the authorities here.

 

Further, other issues related to the WTO negotiations like continuation of balance of payments restrictions and telecommunications are also to be discussed between the two.

Several countries including the US, EU and Australia are keen on removal of quantitative restrictions.

The delay in the introduction of the Bill is a clear reversal of what had earlier been promised to the United States.

The prime minister's office and the industry ministry had in July assured the US officials that the controversial bill will be passed in the monsoon session of Parliament.

The US had earlier moved the dispute settlement procedure under the aegis of the WTO on India's failure to amend her patent laws in line with TRIPS obligations.

The notice on dispute settlement was served on July 2, and India was asked to furnish its reply by July 12.

This was preceded by a warning to India that the Clinton administration would take action for failure to amend its Patents Act, 1970 on April 30.

In accordance with the WTO rules, the first round of consultations on the issue were held in Geneva.

The 60 days for consultations gives time till early October/November, failing which the US intends to ask for the setting up of a dispute panel. Settling the issue by consultations is considered desirable as the WTO process could take anything up to 18 months.

The industry ministry has meanwhile taken up the issue with other party members and a meeting was held on this last month to thrash out the conscientious issue of the patents legislation through political consensus. This is the first direct overture made by the United Front government to consult the Parliamentarians to arrive at a decision.