WT/GC/231  
 
4 June 2021  
(21-4594) Page: 1/4 
General Council  Original: English  
 
URGENT TRADE POLICY RESPONSES TO THE COVID -19 CRISIS  
COMMUNICATION FROM THE EUROPEAN UNION  TO THE WTO GENERAL COUNCIL  
The following communication, dated 4 June 2021, is being circulated at the request of the delegation 
of the European Union.  
 
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1.1.  The European Union strongly supports a multilateral response to the COVID -19 pandemic. The 
most urgent challenge is currently to ensure a rapid and e quitable roll out of vaccines and 
therapeutics globally, as this is the only way to control the virus effectively.  
1.2.  The European Union is doing its utmost to achieve this objective. The European Union has fully 
demonstrated its commitment to international s olidarity by producing vaccines at large scale and 
exporting on average 50% of the production. With over 250 million doses exported, the EU continues 
to remain the largest COVID -19 vaccines exporter in the world. With a contribution of EUR 4 .9 billion, 
the EU is one of the biggest donors to the Access to COVID -19 tools Accelerator, a global partnership 
aiming to accelerate development, production, and equitable access to COVID -19 tests, treatments, 
and vaccines.  Every third euro spent on distributing vaccin es globally is spent by the EU. The EU 
and its Member States also remain the biggest donor to COVAX facility, a global effort to distribute 
vaccines equitably, with EUR 2 .8 billion worth of funding. In addition, the EU has committed to 
donate 100 million d oses of vaccines to those in need by the end of 2021.  
1.3.  On a global scale though, it is not enough. The main issues such as providing adequate and 
quality manufacturing capacities globally, ensuring sufficient raw materials, equipment and trained 
staff must  be addressed. The very serious epidemiological situation in India, a huge challenge for 
international solidarity on its own, risks interfering with COVAX plans to ensure vaccination of the 
most vulnerable population in low - and middle -income countries dur ing 2021, which is a necessary 
first step towards achieving global herd immunity and to avoid the risks arising from COVID -19 
variants.  
1.4.  The rules -based global trading system can contribute to ensure a rapid expansion of production 
and equitable access to C OVID -19 vaccines and therapeutics. Since last year, together with a 
growing number of WTO Members, the European Union has been calling for a multilateral Trade and 
Health initiative. We have also been engaged in discussions on the proposal to introduce a t emporary 
waiver of intellectual property rights for COVID -19 health products, and we have strongly supported 
the initiative by the WTO 's Director -General to consider practical ways to enhance production 
capacity and licensing of technologies through cooper ation with the private sector.  
1.5.  The European Union considers that the time has come to take urgent multilateral action on a 
contribution by the trading system towards an expansion of production and equitable access to 
COVID -19 vaccines and therapeutics. In particular, we would propose that WTO Members agree on 
a global trade initiative for equitable access to COVID -19 vaccines and therapeutics  
encompassing the following:  
Trade facilitation and commitments on export restrictive measures  
1.6.  All WTO Members should be ready to subscribe to the G20 commitment to ensure that any 
export restrictive measures relating to health products are targeted, transparent, proportionate, and WT/GC/231  
 
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  temporary, and consistent with WTO obligations. Such principles have been inc orporated into a draft 
Declaration on the Trade and Health Initiative ( 'Covid -19 and Beyond: Trade and Health 
(JOB/GC/251/Rev.2 ') that the EU along with 12 other WTO Members put forward back in December 
2020. It is encouraging that 50 WTO Members (includin g 27 EU Member States) have signed up to 
this initiative but the involvement of the whole WTO membership is required for it to have a 
significant effect. This initiative constitutes a basis that WTO membership should build on not only 
in a response to the current crisis but also in anticipation of any future emergency.  
1.7.  The draft Declaration develops further the concept of temporariness, and strengthens Members 
commitments regarding transparency and proportionality.  
1.8.  The EU considers that the draft Declarati on could be further developed to take account of the 
on-going issues with respect to production and distribution of COVID vaccines. Vaccine and 
therapeutics producing countries should take a commitment to avoid disruptions in global supply 
chains, includin g in a situation where export restrictive measures have been imposed, and ensure 
that a fair share of their vaccine and therapeutics production is destined for exports. Notifications 
should cover all domestic measures which may have a restrictive effect on  exports, even if exports 
are not explicitly targeted.  
1.9.  In any event, no restrictions of any kind should be applied on supplies to the COVAX facility 
and no measures should be taken that limit trade in inputs necessary for COVID -19 vaccine and 
therapeutics production.  
1.10.   The WTO Director -General should produce regular reports on the progress achieved in phasing 
out export restrictions and fulfilling the commitment to avoid disruption of the vaccine and 
therapeutics supply chain.  
1.11.   Apart from the commitments on export restrictions, WTO Members should seek to establish 
best practices as regards trade facilitation and regulatory cooperation which could be regularly 
reviewed in the Trade Facilitation and TBT Committees.  
Support for the expansion of production  
1.12.   WTO Members should be ready to take measures that support the expansion of production of 
COVID -19 vaccines, therapeutics and their inputs. If such measures of support were to include 
subsidies, Member s should make sure that the subs idized investment responds accurately to the 
public health emergency in the corresponding limited time -frame.  Such subsidies should be 
considered as making a positive contribution to the objective of expanding production capacities.   
1.13.   Governments should str ongly encourage vaccine and therapeutics manufacturers and 
developers to contribute towards the objective of expanding production and ensuring affordable 
supply of vaccines and therapeutics to low - and middle -income countries during the pandemic. Such 
actions could include licensing agreements, providing for the sharing of knowhow, tiered pricing 
which involves a non -profit sale to the low -income countries, contract manufacturing and new 
investments in manufacturing facilities in developing countries. As an nounced by Commission 
President Von der Leyen at the Global Health Summit, our industrial partners – BioNTech -Pfizer, 
Johnson & Johnson and Moderna – have already committed to deliver 1.3 billion doses this year for 
non-profit to low -income countries and at  lower costs for middle -income countries. Such efforts are 
very much welcome as they contribute to the initiative advanced by the WTO Director -General. We 
strongly encourage all the producers of vaccines and COVID therapeutics to follow suit. Further 
action should also be considered to facilitate increased production in developing countries.  
1.14.   The EU acknowledges the fact that significant investment efforts should be made to build 
resilience of the health systems in those countries, which do not have their ow n manufacturing 
capacity and are overly reliant on imports.   To this end, the EU and its Member States (Team Europe) 
are launching an initiative to develop vaccine production in the African continent. The initiative 
entails investment in infrastructure and  production capacities as well as skills development, supply 
chains management, and the necessary regulatory framework. The objective is to develop a number 
of regional hubs distributed across the continent.  We have already identified promising projects in  
South Africa, Senegal and Rwanda, and we are working also with other partners. EUR 1 billion has 
already been allocated from EU budget and EU finance institutions to deliver on this goal.  WT/GC/231  
 
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  1.15.   In cooperation with WHO, WIPO and other international organizations , the WTO should 
compile information on the production of vaccines and therapeutics and on the pledges made by 
producers and organi ze regular meetings bringing all relevant stakeholders to work on concrete 
solutions, whenever necessary.  
Intellectual proper ty  
1.16.   Intellectual property is not and should not be an obstacle to equitable access to COVID -19 
vaccines and therapeutics during the pandemic. Limited manufacturing capacity, access to raw 
materials and other inputs are the main bottlenecks as regards the p roduction of COVID -19 vaccines. 
In addition, know -how is key due to the complexity of the production process. Voluntary licences 
are the most effective instrument to facilitate expansion of production and the sharing of know -how. 
Intellectual property fram ework provides a platform that incentivises collaboration and transfer of 
know -how.  
1.17.   Compulsory licences are a perfectly legitimate tool that governments may wish to use in the 
context of a pandemic if voluntary solutions are not available. In the course o f the discussions in the 
WTO TRIPS Council,  certain procedural aspects related to the use of compulsory licensing were 
identified as factors that limit the use of this tool. In order to address these aspects, provide more 
legal certainty and enhance the ef fectiveness of the system, the EU considers that all WTO Members 
should be ready to agree on the following:  
a. The pandemic is a circumstance of national emergency and therefore the requirement to 
negotiate with the right holder may be waived;  
b. To support manu facturers ready to produce vaccines or therapeutics at affordable prices, 
especially for low - and middle -income countries, on the basis of a compulsory licence, the 
remuneration for patent holder should reflect such affordable prices;  
c.  The compulsory licen ce could cover any exports destined to countries that lack 
manufacturing capacity, including via the COVAX facility.  
1.18.   The EU is also ready to engage on other points regarding the facilitation of use of compulsory 
licensing as provided for in the TRIPS Agree ment.  
Declaration on trade response to equitable access to COVID -19 vaccines and therapeutics  
1.19.   The set of commitments related to export restrictions/trade facilitation, expansion of 
production and intellectual property could be reflected in a Declaration to  be adopted as a matter of 
urgency by WTO Members.  
1.20.   As stated by the WTO Director -General, the WTO must play a central part in the response to 
the COVID -19 crisis. The European Union believes that the proposals detailed in this communication 
represent conc rete steps towards a WTO framework on trade and health that the WTO 
Director -General has been calling for. T he EU intends to work with other cosponsors to further 
develop the draft Declaration on Trade and Health in advance of the July General Council for 
discussion with broader WTO membership. The EU will also further elaborate its proposal regarding 
the approach to compulsory licensing in the WTO TRIPS Council.   
1.21.   The European Union remains ready to fully support the WTO Director -General efforts to 
address the challenges of equitable access to COVID -19 vaccines and therapeutics.  
1.22.   While the EU considers that the elements above can be part of a Ministerial Declaration, we 
are also open to examine other options, and proposals, including on intellectual property,  as long as 
they contribute towards the objectives of expanding production and facilitating equitable access to 
COVID -19 vaccines and therapeutics.  
1.23.   The three basic elements reflected in this Communication are without prejudice to other 
initiatives that could be considered to enhance responsiveness and resilience in the context of future 
pandemics. While these initiatives go beyond trade, the WTO can m ake a contribution in cooperation 
with WHO and other international organizations. The WTO Declaration could therefore also include WT/GC/231  
 
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  elements that contribute towards better preparedness in the context of future pandemics and which 
are based on cooperation wi th other international organizations.  
1.24.   The EU looks forward to discussing the ideas contained in this paper with other WTO Members 
and to a structured process of discussion under the leadership of the Director -General.  
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