In Brief

BRAZIL LOSES USED TYRES DISPUTE

Brazil has lost a WTO challenge against its import restrictions on retreaded tyres. The EU had contended that the import limitations were motivated by a desire to protect the local tyre industry rather than by an attempt to pursue genuine public health objectives. The dispute settlement panel's report, released on 12 June, confirmed a confidential interim ruling (see BRIDGES Weekly, 14 March 2007, http://www.ictsd.org/weekly/07-03-14/story2.htm).

Despite the panel's call for it to change its policies, the Brazilian government welcomed the decision. Officials noted that the panel had accepted the health- and environment-related justifications for restrictions on the import and stockpiling of used and retreaded tyres, objecting only to the way in which the measures were applied.

Indeed, some trade lawyers expressed surprise at the extent to which the panel agreed with Brasilia's arguments and left the door open for it to maintain many of the limitations with only minor modifications.

The case, which represents the first-ever challenge against trade restrictions imposed by a developing country for health and environmental reasons, has been closely watched by environmental groups.

For a full report on the panel ruling, see Bridges Weekly at http://www.ictsd.org/weekly/07-06-20/story3.htm.

The 245-page WTO report (WT/DS332/R) is available on http://docsonline.wto.org/

ICTSD reporting; "Panel Faults Brazil in Tyres Dispute," BRIDGES Monthly Review 11(4), June 2007 (forthcoming).

WHALE CONSERVATION SCORES A DOUBLE VICTORY

Acting independently but within two weeks of one another, two international governing bodies held firm in their support of a worldwide moratorium on whaling.

In separate actions, both the International Whaling Commission (IWC) and the Convention on International Trade in Endangered Species of Fauna and Flora (CITES) rejected requests from Japan and other pro-whaling nations to challenge the IWC's international ban on commercial whaling, which has been in effect since 1986.

Japan, which has long lobbied for an end to the moratorium, requested at last month's annual IWC meeting in Anchorage, Alaska permission for several of its coastal communities to hunt the marine mammals, but withdrew the proposal when it became apparent that it would not garner enough votes for passage (see Bridges Trade BioRes, 8 June 2007, http://www.ictsd.org/biores/07-06-08/story2.htm). In another blow to the pro-whalers, the IWC adopted a symbolic resolution reaffirming the commission's support of the two-decade-old whaling ban. Angered by what it called the commission's "double standard" and lack of sincerity, Japan threatened to withdraw from the IWC and establish its own international whaling forum.

Shifting strategies, Japan and its pro-whaling allies, which include Brazil, Iceland, and Norway, took their case to CITES, whose 171 member nations met in the Netherlands from 3-15 June (see related story, this issue). In a bold move, Japan asked the convention to review the status of all 13 whale species that are currently listed on Appendix I, meaning that all trade in those species is prohibited. A CITES determination that the whale stocks were healthy could result in a lifting of the ban of trade in whale parts, a move that would amount to an approval of commercial whaling itself.

However, CITES delegates rejected Japan's proposal by a wide margin. Further affirming the convention's anti-whaling stance, delegates adopted an Australian amendment stating that the convention should never review the listing of whale species so long as the IWC moratorium remains in effect.

The double victory for whale conservation garnered strong praise from environmental groups.

"Both the IWC and CITES have now spoken in favour of whale protection and conservation," said Kitty Block of The Humane Society International. "It is clear that there is no international will to resume commercial whaling or international trade in their parts." "It's a one-two punch for the whales," added Patrick Ramage of the International Fund for Animal Welfare.

"Japan loses CITES bid on whales," REUTERS, 6 June 2007; "Protections for Elephants, Whales, Tigers, Emerge From Conservation Forum," EARTHTIMES.ORG, 15 June 2007; "U.N. Conference Closes With Mixed Results for Endangered Species," PRESSZOOM, 15 June 2007; "Cash row at wildlife trade forum," BBC NEWS, 16 June 2007; "Japanese whale request rejected," BBC NEWS, 6 June 2007.

REPORT: COCOA TRADE FUELLING ARMED CONFLICT IN CÔTE D'IVOIRE

An investigation by London-based advocacy group Global Witness found that USD 118 million worth of profits from Côte d'Ivoire's cocoa trade has been used to help fund the civil war that has ravaged the country for the past five years.

Valuable resources such as oil, gold, and 'blood diamonds' have long been used to finance conflicts throughout Africa, Global Witness said, and now 'conflict cocoa' in Côte d'Ivoire is serving a similar purpose.

Representing over a third of the total value of Ivorian exports, cocoa is the primary economic resource in the West African state, which produces 40 percent of the world's cocoa supply.

The Global Witness report, released on 8 June, charged that international cocoa-exporting companies have diverted significant funds to help finance armed forces representing both the Ivorian government and the Forces Nouvelles (FN), the rebel group that controls the northern part of the country.

Global Witness called on the UN Security Council to threaten sanctions against companies that funnel cocoa profits to armed groups, and said that the Ivorian government should make its finances more transparent. The report also recommended that international cocoa companies more closely audit their finances and monitor their supply chains.

"There is a high chance that your chocolate bar contains cocoa from Côte d'Ivoire and may have funded the conflict there," said Patrick Alley of Global Witness. "The chocolate industry should clean up its act and ensure that it only sells conflict-free chocolate." He stopped short, however, of recommending measures similar to the Kimberley Process Certification Scheme for Rough Diamonds that excludes conflict diamonds from legal international markets through a series of certification requirements and trade restrictions, and which is covered by a special waiver at the WTO (see Bridges Trade BioRes, 1 December 2006, http://www.ictsd.org/biores/06-12-01/inbrief.htm#2).

Additional resources

The report, entitled "Hot Chocolate - How Cocoa fuelled the conflict in Côte d'Ivoire" is available at http://www.globalwitness.org/media_library_detail.php/552/en/hot_chocolate_how_cocoa_fuelled_the_conflict_in_co.

"Cocoa seen funding Ivory Coast conflict," UPI, 8 June 2007; "Report warns of 'conflict cocoa,'" BBC NEWS, 8 June 2007; "Global Witness report calls on chocolate industry to clean up its act," GLOBAL WITNESS, 8 June 2007; "Africa: Ivory Coast: Cocoa Fueled Civil War," THE NEW YORK TIMES, 9 June 2007.

'DISCLOSURE GROUP' GAINS GROUND AT WTO TRIPS COUNCIL

At a recent meeting of the WTO Council on Trade-related Intellectual Property Rights (TRIPS), Members continued discussions on how best to achieve the objectives of biodiversity conservation and intellectual property protection without reaching agreement. However, a number of countries joined the so called "Disclosure Group", which has proposed making mandatory disclosure requirements part of WTO rules.

The misappropriation of genetic resources and traditional knowledge (TK) through patents ("bio-piracy") has been a source of major concern to a large number of Members, particularly several developing countries. For this reason, a group of developing countries (Brazil, China, Colombia, Cuba, India, Pakistan, Peru, Thailand, Tanzania, Ecuador, and South Africa -- the "Disclosure Group") last summer proposed amending the TRIPS Agreement to require patent applications to include disclosure of the origin of genetic resources and associated traditional knowledge as well as evidence of prior informed consent and benefit sharing (IP/C/W/474; see BRIDGES Trade BioRes, 16 June 2006, http://www.ictsd.org/biores/06-06-16/story3.htm). They argue that such requirements are necessary to support patent-related obligations that arise from the Convention on Biological Diversity (CBD).

These countries have since repeated their call for making mandatory disclosure requirements part of WTO rules, calling for text-based negotiations to develop a specific amendment. They have been opposed by Members such as Australia, Canada, and New Zealand, which argue that such negotiations would be premature and that even disclosure requirements might not prevent 'bad patents' from being granted.

At the latest TRIPS Council meeting on 5 June, the "Disclosure Group" expanded considerably, with Venezuela, the members of the African Group and the members of the Group of Least-Developed Countries (LDCs) announcing their support for the proposal.

Apart from that, the discussion followed a familiar pattern. Australia, Canada, and New Zealand said that more facts-based discussions on concrete cases of misappropriation were necessary. Japan and the US underlined their opposition to any TRIPS amendment on disclosure, saying that there is no contradiction between the WTO agreement and the CBD.

Norway supported the Disclosure Group's call for text-based negotiations, pointing to its own similar proposal for an amendment (IP/W/473). Instead of patent revocation, the Norwegians would sanction patent applicants that fail to meet disclosure requirements outside the outside the patent system. Several countries in the Disclosure Group welcomed the Norwegian approach as a step in the right direction.

Finally, the EU reiterated its call for disclosure requirements to be negotiated outside the WTO, at the World Intellectual Property Organisation.

Brazil said that Members' political will to engage in negotiations on disclosure as part of the Doha Round negotiations was growing. According to the Brazilian delegate, technical discussions would be pursued in informal consultations rather than at the meetings of the TRIPS Council.

The new chair of the TRIPS Council, Ambassador Yonov Frederick Agah (Nigeria) will consult with Members on whether to grant the CBD Secretariat observer status at the WTO, after Brazil expressed support for doing so but the US indicated its opposition.

For full coverage of the TRIPS Council, see Bridges Weekly at http://www.ictsd.org/weekly/07-06-13/story4.htm

ICTSD reporting.