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EU and US position on TRIPS must be rejected
-Rangarirai Machemedze

The attempted but failed public relations exercise by the office of the United States Trade Representative (USTR) of announcing an interim plan to help poor countries import generic medicines to combat HIV/AIDS, tuberculosis, malaria and other diseases that pose national health crises is a political farce.

 

Negotiations in the World Trade Organisation (WTO) on TRIPS and Public Health that were supposed to be complete by the end of 2002 did not yield any positive results due to the mixing of issues by the US in an attempt to save the corporate interests of pharmaceuticals. The US in a bid to salvage the negotiations announced at the end of December 2002  that it would not object to the importation of drugs to cover other diseases. In earlier negotiations, the US had insisted that only three diseases be covered  HIV/AIDS, tuberculosis and malaria.

 

The WTO TRIPS Council failed to meet the 31 December 2002 deadline to agree on a solution under Paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public Health when the US rejected the solution due to concerns over the scope of diseases covered. The US suggested the inclusion of a footnote that would expand its previously proposed three-listed diseases to 23. This proposal, as rejected by developing countries, would restrict the mandate given by the Doha declaration, which refers more generally to measures to protect public health.

The USTR said some WTO members had wanted to expand the targeted poor country epidemic focus of Doha to allow richer countries to override patents on a range of drugs. This did not go down well with the US, because of its pervasive protectionist attitude of big business. The US argued this approach could seriously undermine the WTO rules on patents that provide incentives for development of new pharmaceutical products, including those to treat diseases of a non-epidemic nature.

It is evident that the US position is designed to block the developing countries from making some inroads in reaching a permanent solution to the public health problems that these countries are facing. And for the USTR to announce a plan that goes some steps backwards at the same time speechifying that the US is committed to helping developing countries solve the health crises smacks of hypocrisy.

This botched public relations exercise was meant to appear as if the US has compromised on the scope of diseases when in fact it has actually restricted the scope of diseases to be covered. and had given a lifeline to its pharmaceutical industries. The fact that the plan announced would not apply to developed country members and high-income developing countries in one way or the other violates the basic WTO principles of National Treatment and Most Favoured Nation.

Salivating in the wings of the USs offer is the European Union Commissioner, Pascal Lamy who has made a proposal on an initial list of diseases that would be covered under Paragraph 6 of the Declaration. Lamy argues that other diseases applicable under the Declaration could be checked or approved by the World Health Organisation (WHO) as the situation arises. Such proposals are nothing but measures to protect the corporate world. In addition to limiting the scope of diseases, the EC effectively adds one more bureaucratic and political hurdle for poor countries: to go through the rigours of the WHO system to prove that a health problem actually exists in the country for a disease that is not on the initial WTO list.

It is most likely that there will be some logistical problems when a country tries to seek advice from the WHO and meanwhile people will be suffering. Arguably the whole process of consulting the WHO and then granting a licence to a third part to manufacture the generic drug or to import the patented drug might take well over a year and that particular disease will be spreading and causing untold suffering to the countries, their economies and the people.

Lamys letter to WTO Member states, written on the 7th of January 2003 reads in part:

&I wanted to begin the year with a proposal for a multilateral solution, which is outlined below. You will find attached a list of infectious epidemics, which are generally recognised by health experts as those, which have the most damaging impact on developing countries. We assume that all WTO Members agree that these diseases are without doubt effectively covered by the solution proposed by the Chairman, but we understand that certain Members still have concerns as regards other potential public health problems. For these problems, we therefore need to find a mechanism to ensure that the Doha Declaration can be used in good faith. I return to an idea, which we have already floated in Geneva during the course of the discussions. Since there is a global organisation dedicated to health questions, the WHO, we should encourage Members to seek advice from the WHO and we should entrust the WHO with the task of assessing the occurrence of other public health problems. To this effect, I attach a possible wording on the involvement of the WHO.

This kind of thinking is not good at all for developing countries in general and for those countries in real need of drugs in particular. The WHO is a United Nations Organisation whose budget is mainly supported by the EU and the US. A question that immediately comes to mind is what happened at the UN World Summit on Sustainable Development (WSSD) in South Africa in August last year? The summit was hijacked by transnational corporations who were pushing the corporate agenda of the WTO. Some like-minded persons thought that because it was a UN summit, then it was going to be free from the influence of the corporate world and save the agenda of sustainable development for the social world. Alas it was exactly the opposite. So the same kind of a situation, as proposed by Pascal Lamy, will happen if the WHO is dragged into the TRIPS and Public Health negotiations. Involving organisations like the WHO is like a scapegoat for the EU who want to legitimise their proposal by bringing in an organisation that is perceived to be neutral when dealing with issues of public health. Developing countries must continue to stand their ground and reject the dubious solution offered by the EU. Japan, on one hand, which is also part of the Group of 8 like the US and some EU countries, had long proposed for the removal of vaccines from the list of diseases. Their argument was that vaccines were not technically pharmaceuticals yet they play a major part in addressing potential public health problems.

The Doha Declaration on TRIPS and Public Health has provisions that provide for countries without manufacturing capacity of drugs to use flexibilities in the TRIPs Agreement of Compulsory Licensing. Compulsory licensing is granting authority to a third party to manufacture generic equivalence of patented drugs without the consent of the patent holder under certain conditions. However, after a year of intensive negotiations, no consensus was reached by WTO members to implement Paragraph 6 of the Declaration because some countries insisted that the solution cover all health problems whilst other, especially the US wanted only a limited number of diseases.

The developed countries have a tendency of using their political and financial power to sway the negotiations in their favour. This is unacceptable, the US and EU positions must be rejected.

 

*Machemedze is a Programme Officer with SEATINI and Editor of SEATINI popular publications.


            
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