Most Favoured Nation:

Most Favoured Nation:  Recently US most favoured nation” (MFN) policy increase pressure on India to hike drug prices.

• About MFN : MFN principle is a key rule in international trade under the World Trade Organization (WTO). It means that a country must treat all WTO trading partners equally in terms of trade concessions, such as tariffs or regulations.
• Exceptions: Free Trade Agreements (FTAs): Countries can give preferential treatment to partners in an FTA (e.g., SAFTA, ASEAN).

o Special treatment to developing countries: Under the Generalized System of Preferences (GSP), developed countries can give duty-free or low-duty access to imports from developing countries.

• India’s Position and Strategic Concerns: India’s patent laws follow global TRIPS rules but avoid stricter “TRIPS-plus” provisions like patent evergreening and data exclusivity. This helps keep medicine prices affordable and supports access to public healthcare.
• TRIPS (Trade-Related Aspects of Intellectual Property Rights): Adopted in 1994, as part of the Uruguay Round of GATT negotiations and WTO Agreement.

oIt Covers Copyrights Trademarks Patents Industrial designs Geographical indications (e.g., Darjeeling Tea) Trade secrets.

• Key Features: Minimum standards: Members must meet minimum standards of IP protection.

oNational treatment: Members must treat foreign IP holders the same as domestic ones.

oEnforcement: Includes provisions on enforcement of IP rights through courts and administrative bodies.

oDispute settlement: TRIPS violations can be challenged under the WTO dispute settlement mechanism.