[Ip-health] Bridges: Europe Scrambles to Finalise Latin American Agreements

[Judit Rius Sanjuan]

http://ictsd.net/i/news/bridges/48560/

News and Analysis =95 Volume 13 =95 Number 2 =95 June 2009
Europe Scrambles to Finalise Latin American Agreements

Any hope of a region-to-region Association Agreement between the
European Union and the Andean Community seems to be definitely
shattered. The race is on for concluding a similar pact with Central
American countries in July, but the deadline may well slip.

Of the four the Andean countries, only Peru and Colombia are still
pursuing full-scale =91association agreements=92, as the EU=92s trade pacts
with developing countries are called. The agreements consist of three
pillars, one on trade, another on development co-operation and
financing, and a third on political dialogue.

Bolivia, an original party to the talks, has boycotted the
negotiations since 2007 in protest over the EU=92s stance on
intellectual property rights and the privatisation of services. In
May, President Evo Morales reconfirmed that his country would
negotiate =93neither the privatisation of our natural resources, nor the
privatisation of basic services, nor allow patents on living
organisms.=94 Mr Morales added that differences in these areas were so
profound that it would be impossible for Bolivia, Peru and Colombia to
develop a common negotiating position vis-=E0-vis the EU.

Now, Ecuador=92s participation in the negotiations appears in doubt as
well. Although the country did attend talks on the pact in early May,
two weeks later President Rafael Correa said in a weekly radio address
that Ecuador was =91very concerned=92 about the direction the negotiations
were taking: =93The European Union can give [the deal] whatever pretty
name it wants, but we are headed toward a free trade agreement, and we
will not accept that.=94

Ecuador=92s foreign minister Fander Falconi and chief trade negotiator
Mentor Villagomez said that the country would participate in
discussions on intellectual property, financial services, government
procurement, competition and access to agricultural markets only as an
observer. This did not mean that Ecuador was abandoning the
negotiations, the officials assured, but rather that it needed more
time to judge whether an eventual agreement would be in line with the
new constitution adopted in September 2008. The principle had been
accepted by the EU, as well as Peru and Colombia, they added.

The latter two countries are still keen to push forward in the talks,
but concerns remain over intellectual property issues, including the
EU=92s insistence on a =91data exclusivity=92 period of up to 11 years,
during which health authorities cannot release confidential clinical
trial data to generics manufacturers. Progress could also be
frustrated by European concerns over labour and human rights
violations in Colombia. =93There is no disagreement on the objectives.
We all want better judicial procedures, fewer killings and a
government with clean hands,=94 said Rupert Schlegelmilch, the EU=92s
chief negotiator for the Andean nations. =93The Colombian government is
taking on board [our] recommendations,=94 he added. =93It is certainly
still a bad situation, but it is improving.=94

The talks were slated to conclude in June, but many think that
September is a more realistic possibility.

After Snags, Central American Pact Is (Almost) Back on Track

Neither has it been plain sailing for region-to-region negotiations
between the EU and Guatemala, El Salvador, Honduras, Nicaragua, Costa
Rica and Panama, collectively referred to as CAFTA countries because
all six are party to the US-Central American Free Trade Agreement.

In April, the seventh round of the talks ended in disarray when
Nicaragua walked out due to lack of support for its proposal to
establish an economic and financial fund of -60 billion, nine-tenths
of which would be financed by the EU. European negotiators said the
amount was far too large, and the other five parties agreed. However,
the EU said it was ready to contribute financially within the
resources already allocated to Central America in its development
budget. On 25 April, the EU announced the establishment of a bi-
regional working group on a financial mechanism for regional
development.

Negotiations resumed in May with a focus on trade liberalisation
commitments after two years of discussions mostly centred on other
aspects of the pact. The EU called for the CAFTA countries to open
their markets to industrial and agricultural products considered
=91highly sensitive=92. Although negotiators have been tight-lipped about
the details, it is thought that the EU is particularly interested in
duty-free access for its dairy and pork products, as well as olive
oil, protected by geographical indications. Other items on the EU wish
list include lower duties for pharmaceuticals and cars.

However, Central American sources predict that services liberalisation
could prove the real stumbling block in the negotiations. The EU is
known to have high ambitions in opening up sensitive sectors, such as
telecommunications and financial services.

EU External Relations Commissioner Benita Ferrero-Waldner said in May
that she hoped the next round of talks, scheduled for 6-10 July, would
be the last. Her Nicaraguan colleague, Valdrak Jaentschke Whitaker,
countered that a good deal would be preferable to a quick one.

Warning on Health Impacts

A study on the agreement=92s impacts on access to essential medicines,
published by European and Andean civil society groups in May, found
that five million Colombians and more than six million Peruvians would
lose access to affordable medicines by 2030 unless public health
budgets were increased by US$280 million and US$250 million
respectively.

Together, the EU=92s proposals on patent protection and data exclusivity
would increase the prices of medicines by up to 34 percent, the groups
said. They also castigated the EU for adopting a more aggressive
approach to IP protection by developing country FTA partners than the
US.