[Ip-health] IP-Watch: Parliament Paves Way for EU Adoption Of WTO Health Amendment

[Thiru Balasubramaniam]

http://www.ip-watch.org/weblog/index.php?p=3D800&res=3D1024_ff

24 October 2007
Parliament Paves Way for EU Adoption Of WTO Health Amendment


By David Cronin for Intellectual Property Watch

BRUSSELS - The European Union has pledged not to include any
intellectual property provisions that would curb access to medicines in
a series of free trade agreements it is negotiating with
least-developed countries.

The commitment has been given as part of a deal struck between the EU=92s
three largest political institutions, paving the way for the Union to
ratify a December 2005 decision from the World Trade Organisation aimed
at boosting the supply of affordable drugs to the poor.

Until now, members of the European Parliament (MEPs) have delayed
approval of the decision that would give permanent effect to a 2003
waiver from the WTO Agreement on Trade-Related Intellectual Property
Rights (TRIPS). The waiver was designed to allow countries lacking
production capacity to address public health emergencies by importing
cheap generic versions of patented drugs produced under a compulsory
licence.

On 23 October, however, MEPs announced that they had won assurances
from the European Commission (the EU=92s executive branch) and the
Council of Ministers (which bands together the Union=92s 27 governments)
on several points of concern.

Under the deal, the Commission has undertaken not to include any
IP-related clauses that could impede the public=92s access to medicines
in the free trade deals - or Economic Partnership Agreements (EPAs) as
they are called - it hopes to conclude with almost 80 African,
Caribbean and Pacific (countries) by the end of this year.

EU member states also have been told that they are free to produce
generic versions of patented medicines and to export them to poor
countries that lack the ability to manufacture them. The Commission has
been requested not to interfere in any way with an EU state that
produces generic medicines in such cases.
And the EU has committed to provide financial support to developing
countries so that they can improve their medical production and
research facilities.

Peter Mandelson, the European commissioner for trade, said that he
wished to =93dispel misunderstandings=94 about his position on the EPAs.
=93Let me confirm that in those agreements and other bilateral agreements
with poor developing countries, we will not ask for provisions that
affect access to medicines,=94 he added.

When the 2005 decision was reached, the WTO set 1 December 2007 as a
target for ratification by the two-thirds of its member states needed
for it to enter into force. On Tuesday, the WTO TRIPS Council agreed to
recommend a two-year extension of the deadline to 2009 (IPW, WTO/TRIPS,
23 October 2007).

So far just 11 of the organisation=92s 151 countries have ratified it =96
or 7 percent of its total membership. These are the United States,
Switzerland, El Salvador, South Korea, Norway, India, the Philippines,
Israel, Japan, Australia and Singapore.

During previous debates held over the past few months, several MEPs had
suggested that the waiver is too complex to have any substantial effect
in ensuring greater availability of drugs for major killers such as
HIV/AIDS.

Since the waiver was agreed in 2003, Rwanda is the only poor country to
announce that it intends to make use of it to import an AIDS treatment.
Canada is the only rich country to say it will avail of it to
manufacture the medicines sought in Rwanda.

But MEPs sounded a more upbeat note this week, while Mandelson made a
commitment that an evaluation of the waiver will be produced every
three years.

=93Saying =91No=92 would give a negative signal to poorer countries,=94 sai=
d
Gianluca Susta, an Italian Liberal tasked with drafting the
Parliament=92s official stance on the dossier. He argued that the
assembly should =93do everything it can=94 to make sure =93the guarantees a=
re
put into practice.=94

Michel Rocard, a French Socialist and former prime minister, said
=93everyone=92s euphoric as we all seem to agree.=94

Still, he argued that =93doubts have to be allayed on the tenacity=94 of EU
governments and the Commission in upholding the guarantees they have
made.

Parliament Gains Voice in Trade Issues

Greek Conservative Georgios Papastamkos claimed the Parliament had
=93chalked up a political victory=94 by asserting its power on an issue of
trade, a policy area in which it has far less power than the Commission
or EU governments.

This sentiment was echoed by German Social Democrat Erika Mann. =93This
is a historic victory and extraordinary step forward for the European
Parliament,=94 she said. =93For the first time, our assembly has been able
to obtain tangible results from the Council of Ministers in a domain
considered by the member states as their private hunting grounds.=94

But Carl Schlyter, a Swedish Green, took issue with Mandelson for
indicating that he only wishes to have =91poor developing countries=92
exempt from IP provisions relating to pharmaceuticals, rather than all
developing nations.

Schlyter referred to a letter sent by Mandelson to Thailand in July, in
which the Commission expressed concern over suggested that the Bangkok
government was planning to systematically use compulsory licensing to
override patents on any branded medicines that it deemed to be too
costly. Although Mandelson claimed that he was not trying to meddle in
Thailand=92s health policy, his letter was criticised by MEPs and
anti-poverty activists.

Thailand is officially recognised as a =91middle-income country=92 by the
United Nations.

=93Developing countries that are not the poorest have a great need to
protect public health,=94 argued Schlyter. =93They need our support.=94

Portuguese Socialist Francisco Assis said that a =93clash of values=94
occurs when IP issues are placed alongside those of poverty.

=93On the one hand, we have a model for protecting intellectual property
and providing an incentive for research,=94 he added. =93On the other hand,
there are people who don=92t have resources. Are we going to let them
suffer and die because they don=92t have the right pills?=94

While Assis argued that the agreement between the EU institutions
=93certainly isn=92t going to solve=94 some of the underlying problems on
inadequate healthcare for the poor, he described it as a =93step in the
right direction.=94

David Cronin may be reached at info@ip-watch.ch.

---------------------------------
Thiru Balasubramaniam
Geneva Representative
Knowledge Ecology International (KEI)
voice +41.22.791.6727
fax +41.22.723.2988
mobile +41 76 508 0997
thiru@keionline.org