Delegation From

Represented By

Switzerland (Swiss Confederation)

FAST-NU Karachi

Position Paper for World Trade Organization

The topics before the World Trade Organization are: TRIPS a Double-Edged Sword
and Free Trade in the Epoch of Global Economic Crisis. The Swiss Confederation is
an advocate of TRIPS, especially when it comes to pharmaceuticals. The Swiss
Confederation is a major proponent of free and unrestricted trade. However, it is not
entirely in favor of free trade as is declared under the current draft of the Doha
round and wishes for speedy and decisive advancements in it.

I. TRIPS a Double-Edged Sword:

The Swiss Confederation staunchly supports TRIPS, especially in regard to

pharmaceuticals. It believes if there were no patents, there would be no new
medicine, and, therefore, there would be no discussion on affordable medicine. It
believes that patent protection for pharmaceuticals serves public health policies
because it creates new medicine. Switzerland does not agree with the stance of
developing countries in which they argue that compulsory licensing could be used
to develop local production if a patent holder does not produce medicine in the
country. It believes that, instead of this argument being a health policy, it leans
more towards an industrial development policy. Switzerland, however, does not
support Article 6 of the TRIPS agreement, under which parallel imports are allowed
to ensure prices are as low as possible. It believes that this could undermine
“differential pricing” if cheaper products flowed into developed countries’ markets.

Switzerland has participated actively and constructively in the discussions of the

TRIPS Council on the Convention of Biological Diversity, the protection of traditional
knowledge and folklore and the implementation of the TRIPS Agreement under
Article 71.1. It has called for decisions to officially launch negotiations on
outstanding implementation issues related to relationship between TRIPS and the
CBD. It has released various communications regarding biotechnology patents and
biodiversity (IP/C/W/433, IP/C/W/423, IP/C/W/400, and IP/C/W/284). It has worked
alongside developing countries, Peru, Brazil, and India in regard to these items and
has submitted a communication (IP/C/W/446) in regard to these items as well as
helping in the clarification of the communication released by the United States
(IP/C/W/442) and by the proposals submitted by the European Community to amend
the PCT and PLT and to require patent applicants to declare the country of origin
and the source of genetic resources. It has also worked alongside various members
of the WTO and the TRIPS Council for the notification and registrations of
geographical indications (TN/IP/W/3).

II. Free Trade in the Epoch of Global Economic Crisis:

In WTO Switzerland is member of the G10 group. Switzerland has always been
actively supportive in industrial market access, services, Geographical Indications
and is decidedly committed to the multilateral trade liberalization. In addition to the
EFTA Convention and the Free Trade Agreement with the European Union (EU),
Switzerland currently has a network of 16 free trade agreements with countries
outside the EU. Apart from agriculture, there are minimal economic and trade
barriers between the European Union and Switzerland. It applies the most-favored-
nation clause in trade with all WTO member states and is generally committed to
eliminating trade restrictions worldwide.

The Swiss Confederation believes that the current progress on the Doha Round is
slow and far below the required standard. Regarding the current draft under Doha,
Switzerland is not satisfied but is ready to make concessions for the greater good.
Switzerland has sought to advance the Doha Round negotiations on several levels.
Despite intensive efforts and an informal ministerial conference lasting several days
in July 2008, the breakthrough strived for was not achieved. Progress remains
uncertain. The WTO and the existing body of rules remain in effect and continue to
determine Switzerland’s economic relations with many different states.

The worldwide trend towards the conclusion of free trade agreements is reinforced
by the stalling of the Doha Round. In the reporting year, Switzerland in association
with its EFTA partners signed agreements with Canada and Colombia. Negotiations
with the States of the Gulf Cooperation Council and with Peru have been concluded
in substance. On a bilateral level general agreement on the content of an
agreement was reached with Japan – Switzerland’s fourth most important trading
partner after the EU, the USA and China (with Hong Kong). Within the framework of
EFTA, Switzerland took up negotiations with Algeria and India and is considering
doing so in the current year with Russia, Serbia, Albania and Ukraine. Clarifications
with China on the commencement of negotiations on a bilateral agreement
continued.
Under the current draft of the Doha round, Swiss farmers may lose 30-50% of their
current earnings. Switzerland, however, cannot make any further concessions in
terms of agriculture as it will already have a high price to pay.