Breaking IP rules in best interests for growth powerhouses, says Gowling survey
It’s in the best interests of countries such as China and India to break IP rules, according to a report from law firm Gowling WLG.
If the countries, which Gowling calls “powerhouses of global growth”, do not break the rules, then the “rigid norms” imposed by Europe and the US will stop them from making and selling products that they have, or aim to have, the capability to create by themselves.
That's the view of Graham Dutfield, professor of international governance at the University of Leeds, and one of the experts who provides commentary in the report.
The report, “Global Protectionism: Are you leaving yourself open?”, was issued on Tuesday, February 20.
Although China and India may be considered protectionist countries, their governments are both embracing open trade through bilateral cooperation and initiatives, such as China’s One Belt, One Road initiative, added the report.
According to Gowling, protectionist measures across the world have increased by more than 7,000 since 2009. It also claimed that 70% of businesses believe that the world is becoming a more difficult place to do business.
Gowling said that harmonisation, which would make the protection of IP across borders easier, is increasingly coming under threat from countries that want to establish their own standards. As a result, some companies can be deterred from entering into new international markets.
More than three-quarters of CEOs surveyed for the report believe that the increased climate of protectionism will lead to a global recession.
While almost half of businesses believe protectionism is positive for their own sector, there is cynicism surrounding the motives for it, with 50% saying that policies surrounding protectionism are for political gain.
“Even if this is a short-term reaction it can be harmful, and eventually could limit access to best-in-class technologies, limiting growth,” explained Gordon Harris, partner and head of IP at Gowling.
“The current era is not going to give way any time soon, but in the meantime big, global questions are mounting that need concerted solutions—interoperable standards on privacy, copyright and certification.”
Gowling said that harmonisation, which would make the protection of cross-border IP easier, is coming increasingly under threat by countries wanting to establish their own standards.
In the EU, a “significant number” of member states have been engaging in protectionist behaviour over the last ten years with nations outside of the EU, according to the report.
An analysis of EU-imposed trade measures applied between 2009 and 2016 found that almost half were in some way damaging to global trade. The report claimed that 5,657 directives and measures are actively restrictive on trade.
Meanwhile, in the US, approximately 1,000 more protectionist measures than liberalising measures have been created since 2009.
The only countries, of those analysed by Gowling, that have loosened their borders since 2009 are Brazil, Tunisia, and Saudi Arabia.
Harris added that recent events such as Brexit, the election of US President Donald Trump and the rise of European far-right political parties “point to an era of de-globalisation and increased protectionism”.
The full report can be accessed here.
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