G7 summit: India to bat for global vaccine waiver, funding for global effort

Over 200 world leaders urge G7 nations to help vaccinate the world's poorest. "However, despite mounting evidence that poor and developing nations are not receiving enough vaccines, the G7 nations have not committed to vaccine deliveries or increased manufacturing. In fact, the topic has not even come up for discussions in the pre-summit sectoral meetings," a senior official said.

Trip cancelled

While it was earlier decided that Prime Minister Narendra Modi will be visiting the summit, it was announced last month that his trip had been cancelled owing to rising COVID-19 cases at home and abroad.

The Indian PM is now set to join the gathering virtually. India, along with Australia and South Korea, are special guests for the meet.

Since the beginning of the pandemic, India has increasingly flexed its geopolitical muscle, rounding up support from developing nations and the bloc of Least Developed Countries.

As the COVID situation comes to a head globally, the government is both eager and under pressure to represent the interests of the global south, the official said.

Vaccine waiver and funding

Primarily, Modi is expected to push for a major economic commitment from the G7 nations to help poorer nations fight the pandemic as well as open their existing unused stockpiles to support vaccination elsewhere.

A key part of this would be for the G7 to support the global vaccine Intellectual Property Rights (IPR) waiver, which New Delhi is hoping the summit will officially commit to in one form or the other in the joint statement.

India has suggested to the World Trade Organization (WTO) that members waive off  IPR globally for COVID-19 vaccines for atleast three years.

However, as Moneycontrol had earlier reported, trouble has brewed over the demand to also extend the waiver for requisite drugs, medical equipment, and all health technologies necessary for the prevention of COVID-19.

Sponsored by 62 nations, and with the unofficial support of nearly 120 economies, India's revised proposal was submitted on May 21.

It is currently being discussed by WTO's powerful council on Trade-Related Aspects of Intellectual Property Rights (TRIPS) over a two-day special meet on June 8-9. Sources say the TRIPS Council has agreed in consensus to go ahead with text-based negotiations with a deadline of end-July suggested by India.

In terms of direct support, India has pointed to an International Monetary Fund (IMF)-backed report that has proposed a $50 billion plan to end the COVID-19 pandemic, senior sources in the know said.

"It had targeted vaccinating at least 40 percent of the world's population by the end of 2021 and has gained traction in USA and the UK," one of them said.

Corporate tax

New Delhi is also expected to ask the bloc to take into account the voices of other major nations, on the issue of the proposed G7 global corporate tax plan.

India has also vehemently opposed any move to create a 'vaccine passport', which would only allow those foreign nationals to travel to the G7 nations who have received jabs of specific COVID-19 vaccines.

Her main grouse with the proposal is that countries would have to revoke their respective digital services taxes after the global corporate tax comes into effect.

India charges all non-resident entities an ‘equalisation levy’ up to 2 percent on their earnings through digital businesses based in or targeting the Indian market, covering most American internet majors.