The U.K.-India Free Trade Agreement: A Double-Edged Sword for Access to Medicines

As India navigates the complexities of global trade, the recently-signed Free Trade Agreement (FTA) with the U.K. emerges as a pivotal point of contention. On July 25, 2025, a gathering of health care experts and economists convened to dissect the implications of this new agreement. The discussions shed light on a pressing concern: how the FTA’s provisions on patents may jeopardize access to affordable medicines for millions.

Provisions Favoring Patent Holders

The hard-won victories of public health activists seem threatened by the FTA’s intellectual property clauses. In a critical review, Biswajit Dhar, a former professor at the Centre for Economic Studies and Planning at Jawaharlal Nehru University, underscored the imbalance created by the agreement. “There is a progressive movement towards accepting the demands of FTA partners, which systematically debase public interest safeguards available in the Indian Patents Act,” he explained.

Under the new terms, the frequency of patent reporting has shifted significantly. Previously, patent holders were required to submit detailed accounts of their operations annually; now this obligation will occur once every three years. “This effectively compromises the ability of potential compulsory license applicants to prove unmet demands, which constitute grounds for compulsory licensing,” warned Jyotsna Singh, co-convenor of the working group on Access to Medicines and Treatment. “It clearly tilts the balance heavily in favor of pharmaceutical transnational corporations.”

Moreover, concerns about the potential for “evergreening”—a strategy used by pharmaceutical companies to extend their patents—were voiced by K. M. Gopakumar, another co-convenor of the working group. “Provisions that facilitate the sharing and use of search and examination work can undermine existing safeguards against evergreening, such as Section 3(d) of the Patents Act,” he noted, calling for a more vigilant approach to the implementation of these international agreements.

Impact on Access to Medicines

The ramifications of these policy shifts could resonate far beyond India’s borders. Experts project that this imbalance may delay or even limit the production of essential generics, impacting patients across the Global South. For many in low-income communities, life-saving medicines are already out of reach due to exorbitant prices.

• Patent Reporting Changes: Shift from annual to triennial submissions.
• Voluntary Licenses: May include onerous conditions, limiting access.
• Evergreening Risks: Clauses that could extend patent protections unjustly.

A Chance for Growth and Collaboration

Yet, amidst the reservations, some industry voices have welcomed the FTA. Sanjaya Mariwala, executive chairman and managing director of OmniActive Health Technologies, highlighted the potential for increased trade. “India’s exports to the U.K. went up by 12.6% last year, and this deal gives us a chance to build on that growth,” he said. “With regulatory barriers coming down, Indian healthcare companies will find it easier to operate in the U.K.”

For many, the focus remains on striking a balance between fostering local entrepreneurs and affording consumer protections. Bhavin Mukund Mehta, director of Kilitch Drugs, described the zero-duty access for nearly 99% of Indian pharmaceutical exports as a “much-needed boost” that could enhance India’s presence in the U.K. drug market.

Economic Context

Currently, India’s pharmaceutical exports total $23.31 billion globally, with the U.K. importing nearly $30 billion, yet Indian pharma accounts for a mere fraction of this market. With projections estimating the U.K.’s pharma market to grow from approximately $45 billion now to $73 billion by 2033, the stakes are high.

This agreement could significantly enhance the competitiveness of Indian generics, which comprise a substantial portion of the country’s pharmaceutical production. India, currently the largest supplier of generic medicines, holds a remarkable 20% share of the global supply.

The Call for Caution

While the FTA signals potential economic prosperity, it also presents a sobering reality regarding healthcare access. The concerns voiced by experts mirror a broader apprehension about how trade agreements can shape public health policy. Dr. Amita Sharma, a public health advocate and researcher, stressed that “it is imperative that we maintain our commitment to equitable healthcare. The profits of a few should not come at the cost of access for the many.”

The path forward will require vigilance and negotiation, urging both the Indian government and the public to hold pharmaceutical companies accountable. In pursuing economic growth, there must be an unwavering commitment to ensure that every citizen has access to the medicines they need.

As the FTA unfolds, the spotlight remains on public health guardians and trade experts alike, highlighting the need for a concerted effort to protect vulnerable populations. The balance between innovation, profit, and access will ultimately define the success of this trade agreement and set a precedent for future negotiations.

Source: www.thehindu.com