Twelve of the world's most ecologically diverse nations signed an agreement in Cancun, Mexico, on 18 February to protect against biopiracy and advocate rules protecting their people's rights to genetic resources found on their territory. The alliance, formally called the Group of Allied Mega-Biodiverse Nations, brings together the biodiversity-rich countries of Brazil, China, Colombia, Costa Rica, Ecuador, India, Indonesia, Kenya, Mexico, Peru, South Africa and Venezuela. Citing perceived deficiencies in the 1992 U.N. Convention on Biological Diversity, which contains anti-biopiracy language, the group said it would push for a stricter international treaty at the World Summit on Sustainable Development in Johannesburg in August. Specifically, it will seek new trade rules for patenting and registering products made from their plant and animal resources in order to curb foreign "prospecting" of local species. "Up to now, our nations have not benefited from this great wealth because there hasn't been an equal sharing between the nations involved nor with the rural and Indian groups that use and protect biodiversity," said Mexican Environment Secretary Victor Lichtinger.

"China, Brazil, India, Others sign Anti-Biopiracy Pact," ASSOCIATED PRESS, 18 February 2002; "BIOPIRACY: 12 Nations Form Alliance To Battle Genetic Prospecting," UNWIRE, 19 February 2002.

US GIVES TEXTILE QUOTA CONCESSIONS TO PAKISTAN

The US Administration on 14 February announced a package for Pakistani textiles worth USD 476 million over three years in the form of quota increases of 15 percent in seven categories and some additional flexibility to use unfilled quotas in other categories, granted as part of the US' commitment to Pakistan for its help in the 'war on terrorism'. The deal falls far short of Pakistan's original demand of trade benefits worth USD 1.4 billion, including suspension of all apparel tariffs until 2005 and quota increases for certain products. According to trade sources, the US Administration thereby tried to fulfil its commitment to House Republican textile caucus members -- made during negotiations on Trade Promotion Authority in 2001 -- to minimise the impact of any assistance granted to Pakistan on the US textile and apparel industry. Following the announcement, textile industry representatives warned that the deal would have a significant economic impact on the domestic apparel industry and might set a precedent for other countries involved in the war on terrorism, including Turkey and India, to ask for similar benefits.

"While House grants Pakistan quota concessions worth half a billion," INSIDE US TRADE, 15 February 2002.

BUSH'S CLIMATE POLICY MET WITH DISAPPOINTMENT

Environmental groups sharply criticised US President George W. Bush's climate policy released last week, which seeks to reduce greenhouse gas (GHG) emissions through voluntary action. The Plan links a reduction in carbon dioxide emissions -- a GHG linked to global warming -- to growth in US gross domestic product (GDP) by setting a goal of reducing emissions from 183 on 151 metric tons per million dollars in GDP by 2012. According to Friends of the Earth International (FoEI), such a ceiling will actually allow for continued increases in US GHG emissions. "The US is the world's biggest polluter," said Kate Hampton of FoEI. "It is outrageous that President Bush is still refusing to cut emissions in order to avoid upsetting the powerful US fossil fuel lobby." Former Vice President Al Gore also joined in the criticism. "Instead of accepting an accord endorsed by over 170 nations, President Bush has put forward a plan that falls far short of the needs of both America and the world," he said. Bush's rejection of the Kyoto Protocol in March last year evoked international outrage among governments and environmental groups (see BRIDGES Weekly, 27 March 2001).

"Bush climate plan disappoints as UN meeting ends," REUTERS, 18 February 2002; "Bush's climate con," FoIE PRESS RELEASE, 14 February 2002.

PAKISTANI DRUG INDUSTRY RECEIVES FAVOURABLE COURT RULING

In a ground-breaking decision by a sessions court in Rawalpindi, Pakistan, the right of a local pharmaceutical company, Werrick, to manufacture an anti-diabetic drug that the multinational firm Smith Kline Beecham said it had a patent on was upheld. Pakistani officials expect the decision to pave the way for cheaper drugs to reach more people, critical to a country where forty-five percent of the population lacks access to primary health care. Werrick manufactures the drug with a brand name of Schezonin and sells 10 tablets for 83 rupees ($US1.38) while the foreign firm sells the same drug with the brand name Zyprexa at 1,320 rupees ($US22) per seven tablets, leading Werrick counsel Rehannuddin Khan Golra to argue that local companies could sell the drug for 400-500 percent less than multinational firms. While handed down in January but not made public until 4 February, the decision comes at a welcome time for Pakistan, which has recently faced rising prices due to tighter patent laws in order to follow world trade rules. In order to meet its obligations under the Trade-Related Aspects of Intellectual Property Rights Agreement (TRIPS), Pakistan enacted a Patent Ordinance in December 2000 that allows patents on products and processes. Previously, the country only granted patents on processes, enabling local companies to manufacture various branded products of multinational companies using slight variations in the manufacturing process.

"Pakistan: Local Drug Industry Gets Shot in the Arm," IPS/MUDDASSIR RIZVI, 12 February 2002.

US SENATOR EXPECTS SENATE TO ADDRESS TRADE BILL IN MARCH

On 12 February, Senate Finance Committee Chairman Max Baucus said that he expected the Senate to begin long-awaited action on a bill to give President George W. Bush authority to strike major trade deals to begin in early March. The legislation would allow Bush to strike trade deals that Congress could approve or reject, but not amend, an authority that the White House has not had since 1994 because of disagreements between Republicans and Democrats over various trade-related issues, including how to handle labour and environmental concerns related to trade. The US House of Representatives passed trade promotion authority by one vote last December (see BRIDGES Weekly, 12 December 2001). Proponents say that the legislation is necessary for the US to reach new agreements in talks that began this year under the WTO and for Bush to achieve his goal of creating a Western Hemispheric free trade zone by the end of his first term in January 2005. In contrast, Republicans have objected to the estimated $8.6 billion cost of the "trade adjustment assistance" bill that has been pushed by Democrats that would aid federal workers in "secondary" industries that do business with firms directly hit by trade competition.

"Baucus See Senate Action on US Trade Package Soon," REUTERS, 12 February