4.4 Different Systems for the Transaction of Genetic Resources
91
Genetic Resources, based on the undertaking's basic concept of a multilateral
system (see Chap. 4.3.1).
Since the enforcement of CBD in 1993, however, the international exchange
system for PGRFA has undergone some drawbacks. Because of its revision the
framework given by the International Undertaking is not existent at present.
Nevertheless, CBD provides for access to be granted on "mutually agreed terms",
which might be agreed upon bilaterally or multilaterally (UNEP, 1994a). The
current multilateral exchange system is generally conducted without a formal
agreement. Hence, the existing exchange system is characterized by its informality
and uncertainty. Nevertheless, most countries state that PGRFA in national
collections are still freely available to all bona fide users. But in some Eastern
European countries, the recent privatization of agricultural research institutes has
increased the uncertainty over the continuing free availability of their PGRFA
(FAO, 1996a). Furthermore, there are signs that the access to PGRFA in countries
of supply is starting to be restricted, e.g., the Chinese genebank is restricting the
exchange of indigenous germplasm (FAO, 1996a). Some other countries might
restrict the access by establishing bureaucratic obstacles (Hammer, 1995).
There is presently a wide spectrum of genetic resources exchange systems in
practice: on one side there is the informal multilateral approach, which does not
reflect all of the legal binding points addressed in CBD; at the other end a strictly
bilateral exchange system can be identified. Meanwhile partial elements of
markets for genetic resources are emerging, as can be seen in contractual
agreements between gene owner countries and gene users (either countries or the
pharmaceutical industry in industrialized countries).
This leads to questions as to which arrangements for marketable components of
genetically coded information might be practicable and how to create incentives
for securing genetic resources which are not yet marketable.
Including the issue of the utilization's benefit sharing as well as the
conservation's burden sharing, the future exchange system of PGRFA will
determine the incentives for PGRFA conservation to a major extent. Only if the
countries, hosting predominant parts of PGRFA, can anticipate a significant
compensation for the costs of conservation, they will be prepared to invest in
PGRFA conservation in the future as well. The countries' expectation will be
determined to a major extent by the exchange system of PGRFA.
4.4.1
Multilateral System of PGRFA Exchange
The exchange of PGRFA presently takes place in a complex multilateral system
which is based on legally non-binding and informal agreements, some of which
were only accepted by tradition. The core element of the existing system is the
unrestricted and free availability of PGRFA to all bona fide users worldwide. This
policy, which is followed by all major ex situ collection facilities, was based on
the general assumption that genetic resources were a "common heritage of
mankind" and a "common concern of humankind" (UNEP, 1994, Preamble) and
consequently a public good. Because of the free availability and determined by the
91
Genetic Resources, based on the undertaking's basic concept of a multilateral
system (see Chap. 4.3.1).
Since the enforcement of CBD in 1993, however, the international exchange
system for PGRFA has undergone some drawbacks. Because of its revision the
framework given by the International Undertaking is not existent at present.
Nevertheless, CBD provides for access to be granted on "mutually agreed terms",
which might be agreed upon bilaterally or multilaterally (UNEP, 1994a). The
current multilateral exchange system is generally conducted without a formal
agreement. Hence, the existing exchange system is characterized by its informality
and uncertainty. Nevertheless, most countries state that PGRFA in national
collections are still freely available to all bona fide users. But in some Eastern
European countries, the recent privatization of agricultural research institutes has
increased the uncertainty over the continuing free availability of their PGRFA
(FAO, 1996a). Furthermore, there are signs that the access to PGRFA in countries
of supply is starting to be restricted, e.g., the Chinese genebank is restricting the
exchange of indigenous germplasm (FAO, 1996a). Some other countries might
restrict the access by establishing bureaucratic obstacles (Hammer, 1995).
There is presently a wide spectrum of genetic resources exchange systems in
practice: on one side there is the informal multilateral approach, which does not
reflect all of the legal binding points addressed in CBD; at the other end a strictly
bilateral exchange system can be identified. Meanwhile partial elements of
markets for genetic resources are emerging, as can be seen in contractual
agreements between gene owner countries and gene users (either countries or the
pharmaceutical industry in industrialized countries).
This leads to questions as to which arrangements for marketable components of
genetically coded information might be practicable and how to create incentives
for securing genetic resources which are not yet marketable.
Including the issue of the utilization's benefit sharing as well as the
conservation's burden sharing, the future exchange system of PGRFA will
determine the incentives for PGRFA conservation to a major extent. Only if the
countries, hosting predominant parts of PGRFA, can anticipate a significant
compensation for the costs of conservation, they will be prepared to invest in
PGRFA conservation in the future as well. The countries' expectation will be
determined to a major extent by the exchange system of PGRFA.
4.4.1
Multilateral System of PGRFA Exchange
The exchange of PGRFA presently takes place in a complex multilateral system
which is based on legally non-binding and informal agreements, some of which
were only accepted by tradition. The core element of the existing system is the
unrestricted and free availability of PGRFA to all bona fide users worldwide. This
policy, which is followed by all major ex situ collection facilities, was based on
the general assumption that genetic resources were a "common heritage of
mankind" and a "common concern of humankind" (UNEP, 1994, Preamble) and
consequently a public good. Because of the free availability and determined by the