Five EU countries say focus should be on vaccine production, not patents

By John Chalmers and Marine Strauss

BRUSSELS (Reuters) -Five European Union countries distanced themselves on Friday from the idea of waiving patent rights on coronavirus vaccines, saying the key to ending the COVID-19 pandemic was making more vaccines quickly.

Leaders of the 27-nation bloc were to discuss the suggestion, backed by U.S. President Joe Biden, at a two-day summit that opened in the Portuguese city of Porto on Friday, but are divided about its usefulness.

Experts say waivers could take years to negotiate, and would not address the immediate need to manufacture more doses fast.

“What is the current issue? It is not really about intellectual property. Can you give intellectual property to laboratories that do not know how to produce and will not produce tomorrow?” French President Emmanuel Macron said on entering the talks.

“The main issue for solidarity is the distribution of doses,” he said, adding that France was working hand in hand with Germany on the issue. Berlin expressed its opposition to the idea on Thursday.

Biden on Wednesday backed a call from India and South Africa to waive patent protection for COVID-19 vaccines, responding to pressure from Democratic lawmakers and more than 100 other countries, but angering pharmaceutical companies.

Some EU officials argue that it could take two years to agree on the waivers in the World Trade Organization (WTO), most likely making it irrelevant to the current pandemic.

DIFFICULT PROCESS

The EU leaders are likely to hear advice from the bloc’s executive, the European Commission, that a waiver would not help to boost production, especially in poorer countries, as the manufacturing process requires advanced technologies and facilities, officials said.

The U.S. firm Moderna waived patent rights in October on its vaccine, which uses using the latest mRNA technology, but no other firm has yet announced that it will try to copy the shot.

Germany, home to BioNTech, which owns a patent on another mRNA vaccine developed jointly with Pfizer of the United States, opposes waivers, while Italy supports them, EU officials said.

While the pandemic rages, the chances are high that even more dangerous new variants of the coronavirus will emerge.

The pharmaceutical industry argues that the most expedient approach is to overcome existing production bottlenecks, and sell or donate vaccines to countries around the world.

“No one we will be safe until we all are. If vaccination takes place only in developed countries, our victory over COVID-19 will only be short-lived. We are seeing how quickly the virus is mutating, creating new variants that entail new challenges,” the leaders of Belgium, Sweden, France, Denmark and Spain said in a joint letter to the Commission.

“Vaccines have become security policy and the EU cannot afford to lag behind; to this end, an increased European production capacity will be a key priority,” they said.

The EU, which is among the biggest producers of vaccines in the world, is also the main exporter, with 200 million doses already shipped outside the bloc. The United States and Britain have not exported any of the vaccines they have made.

(Additional reporting by Jan Strupczewski, Phil Blenkinsop, Francesco Guarasio and Gabriela Baczynska; Writing by Jan Strupczewski; Editing by Kevin Liffey)

Biden’s immense economic challenge: Putting 10 million people back to work

By Jonnelle Marte

(Reuters) – President Joe Biden is presenting his plan on Friday for addressing one of the greatest challenges created by the COVID-19 pandemic – how to get millions of out-of-work Americans back on the job.

The labor market regained some minor ground in January when the economy added 49,000 jobs, according to a report released Friday by the Labor Department. But the report showed labor market growth is stalling, doing little to close the huge gap created by the pandemic

“At that rate it’s going to take 10 years before we get to full employment,” Biden said Friday morning from the White House.

Roughly half of the 22 million jobs lost at the height of the pandemic have been recouped. But that still leaves a hole of about 10 million jobs, disproportionately ones held by women and minorities in low-wage roles.

Here is a look at the people who may need the most help as the economy heals:

MINORITIES HIT HARDEST

As the economy reopened last year from widespread shutdowns, many office workers adjusted to working remotely and other industries called people back to their jobs.

But many Black, Hispanic and Asian workers who were overrepresented in the low-wage occupations most affected by the pandemic, including servers, bartenders, cooks and housekeepers, are still unemployed.

The overall unemployment rate dropped to 6.3% in January. But within that rate are huge racial disparities – over 9% of Black workers are unemployed, versus less than 6% of white workers:

WOMEN PUSHED OUT

Before the pandemic, the share of women either working or looking for work was rising, thanks to a record-long economic expansion.

The crisis reversed those gains, in part because the closures of schools and child care centers left working mothers with a weaker support system.

Some 2.5 million woman dropped out of the labor force during the pandemic, compared to 1.8 million men, according to data from the Labor Department.

Biden says he wants to help more women get back to work through policies that reopen schools safely and make childcare more affordable.

SECTOR BY SECTOR

Businesses that rely on travel or on people spending time close to each other indoors have rebounded the slowest, and many people who made their living by staffing kitchens, mixing drinks or cleaning hotel rooms are still out of work.

Employment in leisure and hospitality was down 23% in January from pre-pandemic levels in February 2020, more than any other industry.

Economists expect many of those jobs to return after coronavirus vaccines are distributed widely and consumers feel more comfortable spending money in restaurants, bars and other entertainment venues. But it’s not clear whether employment will return completely to previous levels.

LONG-TERM UNEMPLOYED

Job searches have stretched on for some people, including many in the leisure and hospitality industry.

The “long-term unemployed,” or those who have been out of work for at least six months, now make up about 40% of the total unemployed, or about 4 million people, up from about 20% before the pandemic.

Research shows people who are long-term unemployed can have a harder time finding new jobs, putting them at greater risk of facing pay cuts or of dropping out of the labor market.

Biden wants to create federally subsidized jobs in healthcare, clean energy and other fields that could help the long-term unemployed move into new roles.

ACROSS THE MAP

Designing federal policies to help the out of work may be especially challenging because job losses vary widely from one state to the next.

Employment in Idaho, Utah and Kansas had fully recovered to pre-pandemic levels by December. But the situation was more dire in New York and tourism-dependent Nevada and Hawaii.

This could lead to wide disagreements among lawmakers about how much more aid is needed to nurse the economy, and the labor market, back to health.

(Reporting by Jonnelle Marte; Additional reporting by Howard Schneider. Editing by Heather Timmons and Andrea Ricci)

Cuomo says New York to review any COVID-19 vaccine authorized by federal government

By Maria Caspani

(Reuters) – New York Governor Andrew Cuomo on Thursday said the state will carry out its own review of coronavirus vaccines authorized or approved by the federal government due to concerns of politicization of the approval process.

Cuomo, a Democrat who has repeatedly criticized President Donald Trump and his administration’s handling of the coronavirus pandemic, told reporters at a briefing he was going to form a review committee to advise the state on the safety of a vaccine.

“Frankly, I’m not going to trust the federal government’s opinion,” Cuomo said. “New York State will have its own review when the federal government is finished with their review and says it’s safe.”

A spokeswoman for the U.S. Food and Drug Administration declined to comment on governor’s remarks. On Wednesday, FDA Commissioner Stephen Hahn told a U.S. Senate committee that the agency would only approve a vaccine that was safe and effective.

Recent statements by Trump and his secretary of Health and Human Services (HHS) on authorization of COVID-19 vaccines currently in late stages of testing have caused concern among health experts that FDA decisions can remain independent of politics.

“The way the federal government has handled the vaccine, there are now serious questions about whether or not the vaccine has become politicized,” Cuomo said.

The U.S. Centers for Disease Control and Prevention (CDC) and U.S. Department of Defense and HHS officials will allocate authorized vaccines to the states, which are then expected to handle most distribution, the agencies have said.

Cuomo said a committee of state experts will devise a distribution and implementation plan for approved vaccines that would also determine who gets vaccinated first.

While all U.S. states are expected to come up with vaccine distribution plans, conducting an independent safety review would be a most unusual move.

Trump has repeatedly said a vaccine for COVID-19 could be ready for distribution ahead of the Nov. 3 presidential election.

On Wednesday, Trump said he may not approve any new, more stringent FDA standards for an emergency authorization of a COVID-19 vaccine, saying such a proposal would appear political.

The Washington Post reported on Tuesday that the FDA would issue the guidance to boost transparency and public trust over fears it was being pressured to rush out a vaccine.

“We’re looking at that and that has to be approved by the White House. We may or may not approve it,” Trump told a White House news conference, when asked about the report.

(Reporting by Maria Caspani, Additional reporting by Caroline Humer; Editing by Bill Berkrot)

Philippines presidential spokesman links pardon of U.S. Marine to vaccine access

MANILA (Reuters) – Philippine President Rodrigo Duterte’s decision to pardon a United States Marine convicted of killing a transgender woman nearly six years ago may have stemmed from his desire to get access to coronavirus vaccines being developed by U.S. firms, his spokesman said on Thursday.

“His decision didn’t surprise me. Why? Because I know he is upholding the higher national interest”, Harry Roque said in a regular news briefing when asked to give his “personal take” on the president’s move.

Duterte on Monday pardoned Lance Corporal Joseph Scott Pemberton who was serving a six- to 10-year sentence for killing Jennifer Laude near a former U.S. navy base in 2014, sparking condemnation from activists who described the move as a “mockery of justice”.

Roque, who served as lawyer in the prosecution of Pemberton, had likened Laude’s killing to the “death of Philippine sovereignty”.

“I think this pardon, although this is my personal opinion, was to ensure Filipinos would benefit from a vaccine against COVID-19 should the Americans develop one,” Roque said. “I don’t see any problem with that”.

The Philippines, among a number of developing countries with large populations keen to secure a supply a COVID-19 vaccine, met with representatives of U.S. drugmaker Pfizer Inc last week.

U.S. public health officials and Pfizer said a COVID-19 vaccine could be ready for distribution in the United States as soon as next month

Duterte has pledged that the country, which has the most coronavirus infections and second largest number of COVID-19 deaths in Southeast Asia, would be “back to normal” by December, pinning his hopes on access to affordable vaccines from countries like China and Russia.

The Southeast Asian nation, which has more than 248,000 confirmed COVID-19 cases, plans to buy 40 million doses worth $400 million for 20 million people, about a fifth of its 107 million population.

(Reporting by Karen Lema; editing by Philippa Fletcher)