Does the UK Trade Pact Limit India's Compulsory Licensing Rights?
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Synopsis
The India-UK CETA ensures India's compulsory licensing rights remain intact, promoting public health autonomy. This agreement brings significant opportunities for Indian businesses and emphasizes the commitment to flexible trade practices. Learn how this paves the way for growth in the healthcare and IT sectors.
Key Takeaways
- India retains its compulsory licensing rights under the CETA.
- Public health autonomy is preserved during emergencies.
- India gains access to the UK's 90 billion pounds public procurement market.
- Asymmetric thresholds favor India in market access.
- Foreign competition may enhance service quality and technology adoption.
New Delhi, Dec 13 (NationPress) Strong protections are embedded in the India–UK Comprehensive Economic and Trade Agreement (CETA), ensuring that India retains its policy independence concerning compulsory licensing, even in times of public health crises, as stated by the government.
The CETA reinforces the entitlements of both nations to leverage all available flexibilities outlined in the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement, particularly regarding compulsory licensing under Articles 31 and 31bis.
“This preserves India’s ability to act in the public interest without imposing additional conditions. The powers vested in India through Section 84 (general compulsory licensing) and Section 92 (compulsory licensing during health emergencies) of the Patents Act of 1970 are fully maintained. The CETA does not necessitate any changes or weakening of these provisions,” noted Jitin Prasada, Minister of State for Commerce and Industry in the Rajya Sabha.
He additionally pointed out that the agreement does not impose restrictions on India's ability to utilize compulsory licensing.
“The agreement does not incorporate any procedural delays, requirements for prior negotiations, or additional thresholds that could impede the issuance of compulsory licenses,” the minister emphasized.
India stands to benefit from assured, non-discriminatory access to the UK's public procurement sector, which is estimated at over 90 billion pounds (approximately $122 billion) annually, including key entities like the National Health Service (NHS).
This presents a significant opportunity for Indian companies in sectors such as IT, pharmaceuticals, and services. Furthermore, permitting foreign competition, albeit within regulated thresholds and categories, can enhance competition, lower costs, and improve value, quality, and technology adoption in government initiatives, Prasada added.
Moreover, regarding Market Access commitments, the UK has consented to asymmetric thresholds for goods and services favoring India, where the UK's threshold stands at Special Drawing Rights (SDR) 130,000, while India's threshold will be a higher SDR 450,000 for both goods and services.
This marks the first occasion where the UK has agreed to relax certain key provisions that are typically included in the World Trade Organisation Government Procurement Agreement and their other Free Trade Agreements (FTAs).
Point of View
The India-UK trade agreement is a crucial step toward enhancing India's global economic standing while ensuring that public health measures remain uncompromised. It reflects India's commitment to leveraging trade for national interests without sacrificing essential health rights.
NationPress
13/12/2025
Frequently Asked Questions
What is compulsory licensing?
Compulsory licensing allows a government to permit someone else to produce a patented product without the consent of the patent owner, especially in the interest of public health.
How does the CETA affect India's Patents Act?
The CETA preserves India's existing rights under the Patents Act, ensuring no amendments are required for compulsory licensing provisions.
What sectors benefit from the CETA?
Key sectors such as IT, pharmaceuticals, and services stand to gain significantly from the opportunities presented by the CETA.
What are the thresholds set by the UK for market access?
The UK has agreed to set its thresholds for goods and services at SDR 130,000, while India will have a higher threshold of SDR 450,000.
Does the CETA impose any new barriers for India?
No, the agreement does not introduce any new procedural barriers or requirements that could hinder the issuance of compulsory licenses.
