[Ip-health] Bridges: US to resume trade talks with Thailand, Malaysia

[Sarah Rimmington]

<snip>  Representatives from the US and Thailand met in Bangkok this
week, with hopes of resuming negotiations in coming months. Assistant US
Trade Representative Barbara Weisel met Thai Commerce Minister Mingkwan
Sangsuwan to discuss overall trade relations. The US is Thailand's
largest trade partner, absorbing 12.5 percent of all Thai exports.

Left out of their discussion was talk of pharmaceuticals, a main point
of contention even before the FTA talks were suspended. Since then, the
Thai government has raised the ire of Western pharmaceutical companies -
and won the praise of public health activists - by issuing compulsory
licenses effectively suspending patent protection for certain drugs used
to treat HIV/AIDS and heart disease. The decree authorises the import
and domestic production of cheap generic versions for public health
programmes. <snip>


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BRIDGES Weekly Trade News Digest - Vol. 12, Number 10 19 March 2008
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In Brief
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US TO RESUME TRADE TALKS WITH THAILAND, MALAYSIA

The US has resumed stagnant free trade agreement negotiations with
Malaysia and is looking to do the same with Thailand, according to
reports from the US trade representative's office this week.

Talks with Bangkok were put on hold in 2006, after a military coup in
the Southeast Asian country. Negotiations with Malaysia have started to
move forward after running aground over differences last summer, and
then being held up by Malaysian general elections earlier this month.

Representatives from the US and Thailand met in Bangkok this week, with
hopes of resuming negotiations in coming months. Assistant US Trade
Representative Barbara Weisel met Thai Commerce Minister Mingkwan
Sangsuwan to discuss overall trade relations. The US is Thailand's
largest trade partner, absorbing 12.5 percent of all Thai exports.

Left out of their discussion was talk of pharmaceuticals, a main point
of contention even before the FTA talks were suspended. Since then, the
Thai government has raised the ire of Western pharmaceutical companies -
and won the praise of public health activists - by issuing compulsory
licenses effectively suspending patent protection for certain drugs used
to treat HIV/AIDS and heart disease. The decree authorises the import
and domestic production of cheap generic versions for public health
programmes.

While the compulsory licenses do not go against WTO rules, the US has
complained that Bangkok's decision process was not sufficiently
transparent. The US trade representative's office currently places
Thailand third on its Priority Watch List, which monitors other
countries' protections of US intellectual property rights. Further
elevation on the list could mean possible trade sanctions against Thailand.

As for Malaysia, US Ambassador to Malaysia James Keith last week
expressed hope that a comprehensive bilateral FTA would be finalised by
the middle of this year.

Talks have largely stalled since the two parties failed to complete a
deal in time for it to be submitted to the US Congress under the Bush
administration's 'fast-track' authority, which expired in mid-2007.

The sixth round of negotiations took place in late January. The next
round, scheduled for April, will be the first under the new government,
which will notably see longtime trade minister Rafidah Aziz replaced by
Muhyiddin Yassin, the former farm minister. The final barriers to the
deal are US access to Malaysian financial services markets and public
procurement. In Malaysia, government contracts are subject to a
government affirmative action programme benefiting the ethnic-Malay
'bumiputra' majority. Keith is confident the two sides will resolve
their disagreements in the coming months.

ICTSD reporting; "US, Thai officials talk trade for first time since
coup," AGENCE PRESS FRANCE, 16 March 2008. "A first step to better
Thai-US Trade Relations", THE NATION 15 March 2008. "U.S. Trade
Representative Places Thailand On Priority Watch List In Annual Report,"
MEDICAL NEWS TODAY, 3 May 2007. "U.S. eyes free trade pact with
Malaysia", XINHUA, 13 March 2008. "US seeks to conclude FTA," THE STAR,
14 March 2008. "Malaysia PM shakes up cabinet after poll setback"
REUTERS, 18 March 2008.



--
Sarah Rimmington
Attorney
Essential Action, Access to Medicines Project
Washington, DC
Tel: (202) 387-8030
Cell: (202) 422-2687
www.essentialaction.org/access/