[Ip-health] Thailand: Will Not Back Down in Face of US Threats

[robert weissman]

*http://www.bangkokpost.com/News/02May2007_news01.php

Thailand on priority watch list*

/*US move ridiculed by cheap drug advocates*/

*WORANUJ MANEERUNGSEE & APIRADEE TREERUTKUARKUL*

The US administration has downgraded Thailand to a country with poor
intellectual property protection in a move ridiculed by Thai advocates
of cheap drugs. The US Trade Representative Office (USTR) on Monday
placed Thailand and 11 other countries, including China, India and
Russia, on the ''Priority Watch List'' of countries to be closely
monitored for their protection of intellectual property rights.

It is a downgrading from the ''Watch List'' which Thailand was
previously on.

The downgrading, outlined in the USTR annual report on intellectual
property protection, came as no surprise after the Public Health
Ministry enforced compulsory licensing on imported drugs, drawing
protests from US drug firms.

Abbot Laboratories was among firms which asked Washington to put
pressure on Thailand for allegedly stealing their intellectual property.

But US ambassador to Thailand Ralph Boyce yesterday said the USTR
decision did not only stem from compulsory licensing.

''True, compulsory licensing in Thailand is one of the concerns, but it
is not the main reason for Thailand being placed on the Priority Watch
List,'' he told a press conference.

Thailand's protection of copyrights and intellectual property has been
seen to have weakened over the past year, but there were also other
reasons for the downgrading, he said.

''The fact that Thailand is being placed on the Priority Watch List
reflects US and international concerns toward Thailand's recent economic
policies such as the Foreign Business Act amendment, the capital control
measures and the Retail Act,'' Mr Boyce said.

The US last placed Thailand on its Priority Watch List from 1989 to
1992. It upgraded Thailand to the Watch List in 1993 because of improved
measures to tackle intellectual property offenders.

According to the US International Intellectual Property Alliance,
American businesses selling copyrighted products and services lost
US$368 million in Thailand last year, up from $355 million in 2005 and
$184 million in 2004.

Under the Special 301 Act, Washington can take trade action or seek
dispute settlements against countries on either the Priority Watch List
or the Watch List.

Public Health Minister Mongkol na Songkhla vowed to go on lowering drug
prices to expand the poor's access to essential medicine.

''We have not done anything wrong. We followed the process closely by
announcing the plan to use compulsory licensing before implementing
it,'' he said. The move was ''absolutely legitimate'' and in line with
World Trade Organisation (WTO) rules, the minister said.

The decision to put Thailand on the Priority Watch List reflected the
influence drug firms had over the USTR, he said.

The ministry implemented compulsory licensing for the Aids drug
Efavirenz in November. The patent owner, Merck, later announced a
worldwide cut in the price of the medicine to 725 baht. In Thailand,
patients previously paid 1,500 baht a month to use Efavirenz.

The ministry announced a similar policy for heart drugs Kaletra and
Plavix in January. But it has not yet been implemented because there is
enough stock of these drugs to last until August.

Health activist Jon Ungpakorn urged the Commerce and Foreign ministries
to work with the Public Health Ministry to defend compulsory licensing
rather than leave the task to this ministry alone.

Intellectual property law expert Jade Donavanik said compulsory
licensing was for government use and did not violate the WTO agreement.
''It is unfair to interfere with another country's sovereignty by taking
unilateral trade action like this,'' he said, referring to the USTR move.