[Ip-health] Financial Times: WTO eases rules on drugs for the poor

[Thiru Balasubramaniam]

<SNIP>

Health and development campaigners had urged rejection of the accord,
which translates a waiver to the rules agreed in August 2003 into
binding trade law, as burdensome and unworkable.

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WTO eases rules on drugs for the poor
By Frances Williams in Geneva
Published: December 7 2005 02:00 | Last updated: December 7 2005 02:00

After more than two years of haggling, World Trade Organisation members
yesterday approved a change in WTO intellectual property rules to make
it easier for poor countries to import cheap copies of life-saving drugs.

The move, which marks the first amendment to WTO rules since the world
trade body's creation a decade ago, is seen as an essential part of a
"development package" for poor countries that trade ministers hope to
approve at their meeting in Hong Kong next week.

"This is a landmark achievement that we hope will help developing
countries devastated by HIV/Aids and other public health crises," said
Rob Portman, US trade representative.

Peter Mandelson, European Union trade commissioner, said the deal was a
positive signal for Hong Kong and "a first contribution for a Hong
Kongministerial development package".

A development package is one of the few firm outcomes expected next week
now that WTO members have abandoned hopes of a full-scale blueprint for
completing the Doha global trade talks in 2006.

Yesterday's decision follows last week's agreement to give least
developedcountries until 2013 toimplement WTO intellectual property
rules. They already have until 2016 to intro-duce patents on
pharmaceuticals.

Health and development campaigners had urged rejection of the accord,
which translates a waiver to the rules agreed in August 2003 into
binding trade law, as burdensome and unworkable.

The waiver - and the new rules - enable poor nations that lack the
capacity to produce their own medicines to import generic copies of
branded drugs under compulsory licence. Previously countries could only
break patents for drugs produced by domestic manufact-urers to serve the
home market.

However, the waiver has never been used, partly because exporting
countries have to change their own domestic patent legislation. Norway,
Canada and India have done so while South Korea and the EU say their new
laws will shortly come into force.

In response to US concerns over drug piracy, a separate statement by the
chair of the WTO's ruling general council yesterday makes clear the
provisions are meant to help poor nations tackle public health needs.

In addition, industrialised nations have said they will not use the
provisions and a further 11 WTO members - including Israel, South Korea,
Mexico, Turkey and Singapore - have said they would only use them for
emergencies.

The waiver will continue in force until the new rules are ratified by
two thirds of all 148 WTO members, with a deadline of December 1 2007.