In Brief

EUROPEAN PATENT OFFICE UPHOLDS NEEM PATENT REVOCATION

The Technical Board of Appeals of the European Patent Office (EPO) on 8 March upheld a 2000 decision to revoke a patent on a fungicidal product extracted from seeds from the Indian neem tree, bringing to a close a ten-year battle around the patent (see BRIDGES Weekly, 23 May 2000). The decision thereby dismissed an appeal brought by the original defendants -- biotech company Thermo Trilogy and the US. A reformulated claim submitted by the patent holders as part of their appeal was rejected on formal grounds. Subsequently, the main body of the patent was tested with regard to novelty, disclosure, and inventive step -- and irrevocably revoked.

The case had originally been brought to the EPO in 1995 by Indian environmentalist Vandana Shiva, Magda Aelvoet (then MEP and President of the Greens in the European Parliament), and the International Federation of Organic Agriculture Movements (IFOAM). According to Magda Aelvoet, now the Belgian Minister of State, "Our victory against biopiracy is threefold. First, it is a victory for traditional knowledge and practices...Second, it is a victory for solidarity: with the people of developing countries -- who have definitively earned the sovereign rights to their natural resources -- and with our colleagues in the NGOs, who fought with us against this patent for the last ten years. And third, coming as it does on International Women's Day, this is also a victory for women."

Landmark Victory in World's First Case Against Biopiracy: European Patent Office Upholds Decision to Revoke Neem Patent," RFSEE, GREENS/EFA AND IFOAM, 8 March 2005.

CHINA'S TIMBER NEEDS THREATEN WORLD FORESTS - REPORT

In their 8 March report "China's Wood Market, Trade and the Environment", the environmental group WWF urged China to change its current policies regarding timber imports and logging to avert "devastating impacts on some of the planet's outstanding forests" resulting from the country's rapidly rising demand for wood. Since China's logging ban in 1998 due to the flooding of the Yangtze, domestic wood production has dropped significantly and China has been able to start preserving threatened forests through forest restoration and sustainable forest management. To meet growing demand, imports have increased substantially -- making China the second-largest market for industrial timber, pulp and paper in the world -- including from countries where illegal logging is rampant, such as Russia, Malaysia and Indonesia. "Logging bans in China should not lead to forest loss in other parts of the world," said Claude Martin, Director General of WWF International. "Decisive action is needed to ensure that supply chains leading to or through China begin with well-managed forests," he added. Along with the environmental damage, there are also significant financial losses from illegal logging. Indonesia, for instance, one of China's leading providers of timber, is losing billions of dollars in tax revenue due to the illegal logging.

The report is available here.

"China Timber Demand Threatens World's Forests - WWF," REUTERS, 9 March 2005.

EUROPE TO ADJUST BORDER PRICES IN TRADE WITH NON-KYOTO COUNTRIES?

Caroline Lucas, a Member of the European Parliament (MEP), recently raised the issue of adjustment measures at the border to protect European companies -- which face costs related to climate change abatement under the Kyoto Protocol -- from unfair competition from companies in non-Kyoto countries such as the US, which "are avoiding these costs at the expense of the global environment". Lucas suggested that the European Commission raise the issue at the WTO, since the advantage enjoyed by companies in countries outside the Kyoto regime could be considered a subsidy which "could be subject to redress in the form of countervailing duties or border tax adjustments" under WTO rules. The European Commission recently outlined its strategy beyond 2012, when the first commitment period of the Kyoto Protocol ends (see BRIDGES Trade BioRes, 18 February 2005). The strategy includes enticing countries currently outside the Kyoto Protocol to come on board.

Responding to Lucas on 9 March, the European Commission said, however, that it had no plans of raising the issue at the WTO, as it "does not expect any major negative competitiveness impacts from EU climate policies". The Commission also noted that in its future climate strategy, it would seek to incentives through constructive dialogue, to encourage non-Parties to participate in the next steps of the climate regime.

Question posed by MEP Caroline Lucas to the European Commission.

European Commission response.

"Mandelson Rejects MEPs Call For US Kyoto Tax," NEWS RELEASE FROM C. LUCAS, 9 March 2005.

BLAIR COMMISSION FOR AFRICA CALLS FOR FAIRER

The Commission for Africa established in 2004 by British Prime Minister Tony Blair issued its report on 11 March, calling for "more and fairer trade" for the continent. It put forward recommendations for reducing poverty in Africa, and helping the continent cope with globalisation. The 450-page study identifies governance, capacity building, peace and security, education, healthcare, trade, and an additional US$25 billion per year in aid by 2010 as essential to combating poverty and promoting growth in the world's poorest. The report concludes that increasing Africa's capacity to trade would require investments in infrastructure and the creation of an enabling climate for the private sector. It also emphasises that that development concerns must be the priority in all trade agreements, urging developed countries to address non-tariff trade barriers facing developing country exporters, and to use the Doha Round to set end dates for "appalling levels of developed country protectionism and subsidies". The Commission encouraged them to provide transitional support to African countries to help them deal with negative social and economic effects resulting from the removal of global trade barriers and the erosion of trade preferences.

African leaders generally welcomed the report, although South African President Thabo Mbeki noted that it must be translated into concrete action. Critics, however, pointed out that the Commission's recommendations were not new, and that developed countries had often failed to deliver on past promises of aid and debt-relief to Africa. Others said that the study offered some novel suggestions, including the call for the developed world to play a more active role in policing corrupt payments and repatriating funds deposited by African dictators in European banks.

The full report is available here.

ICTSD reporting; "Can we dare implement Blair Commission report?" IPP Media, 14 March 2005; "Commission for Africa," All Africa.com, 14 March 2005; "Development-Africa: A Mixed Verdict for Commission's Report," allAfrica.com, 14 March 2005; "Africa must be strengthened to compete globally," ghanaweb.com, 14 March 2005; "Mbeki welcomes Blair's Commission for Africa report", SABC News, 11 March 2005..