November, 2009

The World Trade Organisation (WTO) is going to hold its Seventh Ministerial Conference in Geneva on 30th November-2nd December, 2009 to discuss and deliberate on several trade related issues on reduction of subsidies on agriculture and tariff cuts on agricultural and non-agricultural goods including opening up of services sector as set out in Doha Development Agenda (DDA). Some of the issues also relate to Trade Related Aspects of Intellectual Property Rights (TRIPS), viz.

i) Flexibility in implementation of TRIPS Agreement in order to protect Public Health and providing easy access of medicine to poor countries to mitigate the national emergency arising out of certain chronic diseases relating to HIV/AIDS, tuberculosis, malaria and other epidemics (Para 5c of Doha Declaration).

ii) To allow generic drug manufacturing companies to export medicines to the countries which are members of WTO, but do not have adequate manufacturing capacities in the pharmaceutical sector (Para 6 of Doha Declaration).

iii) To discuss issues relating to extension of Geographical Indications beyond wines and spirits, to allow other products, especially of interest to developing countries, say, Darjeeling Tea for India.

iv) Review of Article 27.3 (b) of TRIPS Agreement which deals with patentability or non-patentability of plant and animal inventions and the protection of plant varieties; and a review of the entire TRIPS Agreement (required by Article 71.1).

v) The issues relating to Biodiversity, protection of traditional knowledge and folklore.

It may be noted that certain provisions of patent laws on pharmaceuticals and drugs are causing tremendous harm to the members of the developing countries who are unable to afford the sky-rocketing prices of the patented drugs and the monopolistic approach of the multinational drug companies. It has been observed that certain drugs which are manufactured in India by reputed generic drug manufacturing companies to certain poor countries in Africa and Latin America, who do not have the manufacturing capacities as contemplated in Doha Declaration are being inspected and seized in transit. There are cases of illegal confiscation and seizure of such drugs at the transit ports or air ports by European Countries.

India is recognized as one of the lowest cost manufacturers of drugs and pharmaceuticals holding 4th position in terms of value of exports of nearly Rs. 40,000 crores which is likely to grow to Rs. 100000 crores in near future. Africa and Latin America are major markets for India's low cost drugs used for treatments of disease like HIV/AIDS, tuberculosis and malaria and account for approximately 15% of India's total exports Indian Government has taken up the matter with the European Union (EU) Trade Commissions as the confiscation of drugs at different EU airports / ports is in violation of TRIPS Agreement on public health.

There have also been several cases of non-tariff barriers by USFDA on the Indian Pharmaceutical companies on frivolous health grounds and other technical standards. ITAG believes in full compliance of TRIPS Agreement, in law and spirits by all WTO member countries to establish the culture of fair trade along with free trade and accessibility of technology transfer across the globe.