June 21, 2001	atimes.com

Global Economy WTO to debate patents and low-cost drugs By Gustavo Capdevila GENEVA - The much-awaited debate on how international patent laws affect developing countries' access to medications begins on Wednesday at the World Trade Organization (WTO), and the countries, corporations and civil society groups involved are putting the final touches on their arguments. The scenario for the discussion will be the Council on Trade-Related Aspects of Intellectual Property Rights (TRIPS), the WTO treaty that regulates the commercial use of trademarks, inventions and patents, including those involving medications. The debate will be entrusted to the representatives of the 140 member-states of the Geneva-based WTO. But leaders of the transnational pharmaceutical industry and of non-governmental organizations (NGOs) will be wielding their notable influence in the wings. The debate comes in response to a demand made in April by a bloc of African countries for the convening of a special session of the TRIPS Council to discuss how the property rights agreement affects patents and access to medications, particularly access to drugs for treating HIV/AIDS. In a prelude to the meeting, delegates of NGOs and developing countries gathered here to plot their strategy. London-based Oxfam, a humanitarian organization, described TRIPS as the "epicenter of a battle which pitches some of the world's most powerful pharmaceutical companies, backed by rich governments, against some of the world's most vulnerable people". The current patent system has enabled pharmaceutical companies "to raise prices of their products far above the levels that can be afforded by a great number of people", and the existing model for protecting intellectual property rights "is too heavily tilted in favor of right-holders and against the public interest", according to the African bloc. Martin Khor, of the non-governmental Third World Network, asserted that drug prices have soared due to the monopoly exercised by patent-holders. Oxfam, meanwhile, reports that, "every day, infectious diseases kill 30,000 in the developing world [while] the global pharmaceutical industry places life-saving medicines beyond the reach of the poor". A recent precedent to next Wednesday's debate at the WTO is the legal action taken by 39 transnational drug companies against the South African government, which they accused of violating international patent regulations because it facilitated access to low-cost medicines. The transnationals ultimately withdrew the lawsuit, which represents "a victory for common sense", according to Oxfam. But the humanitarian group warns that there is still a long way to go in reforming WTO rules on patents. At the patent laws meeting, the NGOs want the member nations of the WTO to commit to applying - with "full flexibility" - the measures that the TRIPS accord already recognizes for developing countries. The agreement recognizes that developing countries engage in so-called "parallel imports", a mechanism that allows them to purchase medications sold by other countries at a lower price. Another alternative, compulsory licensing, authorizes governments to grant the use of patents, even without the consent of the patent-holder, in cases such as public health emergencies. Third World Network spokesman Khor asserted that the special meeting of the TRIPS Council must focus on these issues. But the industrialized countries - Japan, United States and the nations of Europe - and pharmaceutical companies are trying to shift attention from this crucial matter, he warned. "Although TRIPS allows developing countries to have compulsory licensing and parallel imports, the European Union and the United States are trying to discourage developing countries from exercising their rights," said Khor. The group of delegates from developing countries that met in Geneva drafted a declaration on access to low-cost pharmaceuticals. They will present the text for adoption to the WTO. Brazil, one of the promoters of the declaration, is embroiled in a claim filed by the United States before the WTO Dispute Settlement Body on behalf of US-based transnational pharmaceutical firms. Brasilia had announced that it would suspend patent rights over medications intended for treating HIV/AIDS unless the drug companies lowered their prices. In response, the transnationals threatened to stop investments in Brazil, and then persuaded Washington to take action at the WTO against the South American nation. Celso Amorim, Brazil's ambassador before the WTO, commented that Wednesday's meeting would be a chance to assert that trade agreements like TRIPS cannot be interpreted in ways that run counter to the basic needs of the world's population. Brazil is awaiting a ruling from the WTO officials, but Amorim has already stated that "we do not agree with the restrictive interpretations [of TRIPS], which are not fair and seek to limit the ability of countries to establish their own health policies". NGOs, including Oxfam, Third World Network and Doctors without Borders, are calling on the participants in Wednesday's debate to declare a moratorium on the related cases heard by the WTO Dispute Settlement Body. In this way, developing countries will not be brought before the WTO tribunal whenever they exercise their rights in compulsory licensing and parallel imports, explained Khor. (Inter Press Service)

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