Thorny questions

1. Patents

The annual ‘Special 301’ report by the U.S. International Trade Commission (USTR) lists countries it claims are insufficiently committed to protecting intellectual property rights. There are three lists.

2. Subsidies

The U.S. and other developed nations blame India for stalling the Trade Facilitation Agreement (TFA). India opposes the TFA since it limits farm subsidies to 10% of the value of farm production at 1986-88 prices, and may hamper implementation of its Food Security Act.

3. Drug Quality

In the past two years, the U.S. Food and Drug Administration’s (USFDA) scrutiny of Indian drug factories has increased. Imports from some factories of companies such as Ranbaxy and Wockhardt have been banned. Indian pharma companies say the USFDA is unilateral and unreasonable.

4. Generics

Citing anti-cancer drugs Nexavar and Glivec as examples, U.S. pharma companies have been demanding action against India for not protecting patents. India allowed their generic versions to be made, arguing that it was a valid step necessary to make cancer treatment affordable.

5. Solar Energy

The Jawaharlal Nehru National Solar Mission requires project developers to source 50% of their equipment from domestic manufacturers. The U.S. claims this violates the General Agreement on Trade and Tariffs. The WTO Disputes Settlement Body is examining the issue.