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Attac about TRIPS


By: Attac

Sand in the Wheels (n°103), November 7, 2001

Divisions in the EU over the TRIPS

At the October 12th meeting of Committee 13 in Brussels, the Committee's proposal for a more pliant Trips position on compulsory licences was rejected.

The pharmaceutical industry revealed that opposition to the proposal came mainly from Germany and the Britain, whose labs had most to lose from this proposal if adopted.

The developing countries, headed by Brazil and India, want the Trips clauses allowing the use of compulsory licences to be interpreted as meaning that, in the event of a national emergeny or "extreme urgency", these licences could be imposed and could by-pass negotiations with the patent holder, the government concerned being allowed to consider valid a compulsory licence coming from another member state.

The USA and Switzerland, which are home to some of the biggest laboratories, are against a declaration on this subject, and stick to their stand that the Trips already contains clauses allowing governments sufficient room for pliability in ensuring access to medicines for Aids or other pandemics.

The pharmaceutical industry considers that Brussels leans too far in the direction of the developing countries' position

It is thought that this proposal to soften the Trips rulings was made with the idea that it would bring more Southern countries to support a new Round. The EU proposal nevertheless included a ban on the re-export of medicines and on demand being met by local producers. Another clause provided that no country could issue compulsory licences if it already benefited from special tariff conditions, reduced below the price normally due to the patent holder.

Anthrax and TRIPS

The link between the Trips and access to essential medicines is still very much in the public eye, with Canada having recently set aside the Bayer patent on an antibiotic, Cipro, intended for the treatment of anthrax, so as to be able to buy a generic version of the drug produced locally, despite the fact that Bayer said it was able to respond to demand. Canada is accused of using doublespeak, since it actively took part in defending the laboratory patents in the treatment of Aids in developing countries. The US was not duped, and criticized Canada's position, fearing that it would weaken the American position with regard to the use of compulsory licences in a national emergency. (Canada finally decided to buy the Bayer medicine). However, an American coalition demanded that the US follow the Canadian example, considering that a decision not to provide generic medicines would prevent poor Americans from obtaining Cipro. The Director of the Brazilian Aids Programme declared : "I hope this case (of anthrax) will bring them to reflect on our position, which is that compulsory licences are a perfectly legitimate instrument."

In Geneva, states take diametrically opposed stands on the TRIPS

The US has submitted a new proposal, suggesting that the transitional period for implementing the agreements could be extended to 2016 for the Least Developed Countries. It proposed a 5-year moratorium before a suit could be presented to the DSB on the application by developing countries in Sub-Saharan Africa for improved access to medicines for treatment of Aids and other pandemics.

This proposal is however considered narrower and more restrictive than the options already available to the Least Advanced Countries, such as the right according to Art.66 to demand an extension at the end of the transitional period ending in 2005.

The EU, for its part, proposes that the developing countries take measures to prevent cheaper medicines finding their way to the markets of developed countries. The developing countries fear that this clause would restrict the Trips options, which make no mention of such an obligation.

To contact them http://www.attac.org