[Ip-health] 3 more Members of Congress write USTR on Brazilian compulsory licensing dispute

[Mike Palmedo]

(Please excuse the bad formating of the letterhead)
http://www.cptech.org/ip/health/c/brazil/brown-waite05242005.pdf

May 24, 2005

Ambassador Rob Portman
United States Trade Representative
600 17th Street, N.W.
Washington, DC 20508

Dear Ambassador Portman,

We are writing to formally petition USTR to formally conduct a full
scale review of its trade policy with Brazil.  Just as you have
accurately portrayed the enormous scale of intellectual property theft
in China and a subsequent review of U.S.-Sino trade policy, Brazil also
merits a similar examination.

As you well know, Brazil has remained on the special 301 Watch List
since 2001 due to its lack of enforcement of intellectual property
rights.  USTR has, in our view, gone too far in extending the review of
Brazil's Generalized System of Preferences.  The result is that it
enjoys tremendous access into our market.  Meanwhile, our leading
exporters continue to report rampant instance of counterfeiting and
piracy in Brazil.  Endowing Brazil with rich trade benefits defies logic.

Recently, however, we have grown alarmed at Brazil's overtures to break
drug patents on AIDS medicines through a compulsory license.  Such a
maneuver, aside from being unprecedented, has in the past seemed nothing
more than an attempt to extort our companies into lowering prices on
levels equal to those in the poorest parts of Africa.  This spring
Brazil's rhetoric has reached a point where it appears that Brazil may
actually be seeking the patents of these drugs themselves, not any
further price reductions.

The TRIPS agreement was intended to be used by poor countries faced with
an epidemic for cases where patents pose an obstacle to containing that
epidemic.  Brazil, with an economic output comparable to Germany,
appears to be seeking a way to develop its generic manufacturing
capacity through confiscating our pharmaceutical technology.  Statement
by President Lula de Silva while in Africa last month point this
possibility:  "The Brazilian leader talked with the [Minister of Health]
about how Brazil can collaborate with African countries to help them
produce anti-retroviral drugs for the treatment of HIV/AIDS" (VOA, April
12, 2005 By: Gabi Menezes).  Currently, Brazil is incapable of mass
producing these medicines but could quickly become a generic provider by
gaining American technology.

We do not have to emphasize to you, Ambassador Portman, how reliant the
American economy is upon the protection of innovation and technology.
By turning the other cheek repeatedly with large countries like Brazil,
we risk jeopardizing the long-term vitality of the economy.  We cannot
afford to forfeit our inventions to our competitors.  We cannot afford
to sit idle as they proceed with premeditated theft.

The Senate has already intervened recently in the debate about the
revalutation of China's currency, voting to place large tariffs on their
imports.  We should make it known that the U.S. would consider similar
sanctions against Brazil if it steals these drug patents without
impunity from our government or if the administration does not quickly
act to halt Brazil's move on this front.

We ask that you consider an initiative to closely examine our trade
relationship with Brazil and to deliver the strongest possible message
to your counterpart that the theft of our technology will not stand.

Sincerely,

Ginny Brown-Waite, M.C.

Mario Diaz-Balart, M.C.

Ileana Ros-Lehtinen, M.C.