Summary: August 30, 2003: EU strongly welcomes WTO deal on generic medicines (Brussels)
The EU welcomes the long awaited endorsement today in the World Trade Organisation of a deal to improve access to medicines for developing countries. All WTO Members have now agreed to the compromise text brokered last December to allow those countries without the capacity to produce their own medicines to import generics. The compromise, known as the Perez Motta text, is now accompanied by a statement aimed at giving comfort to both developing countries and pharmaceutical companies that the
deal seeks to protect public health and to ensure that access to generics in these circumstances reach those in need. EU Trade Commissioner Pascal Lamy said: "This deal may have taken too many months to complete but finally it shows the WTO can respond flexibly and pragmatically to the concerns of developing countries and contribute to the fight to combat killer diseases. But it also means transparency and certainty for countries with no capacity to produce medicines, importing
generics is now a right protected by the WTO. With less than two weeks before we meet in Cancun, this is a crucial demonstration that the Doha Development Agenda is more than just fine words."
This compromise fulfils the mandate given by the Doha declaration, that called for the « WTO Agreement on Trade-related Intellectual Property Rights (TRIPS) to be part of the wider national and international action to address serious public health problems » and to « be interpreted and implemented in a manner supportive of WTO members' right to protect public health and, in particular, to promote access to medicines for all ».
The Perez Motta text, named after the former Chairman of the TRIPs Council, will allow countries to export generics to third countries with no manufacturing capacity in the pharmaceutical sector, by making effective use of compulsory licences. It includes safeguards against abuse and trade diversion and rules to ensure transparency. The decision also contains provisions on transfer of technology and regional cooperation. Legally, the decision takes the form of a provisional waiver, but provides
for its replacement by an amendment to the relevant TRIPs provision, on which work will have to be completed by mid 2004.
At the launch of the Doha Development Agenda in Doha in November 2001, WTO members agreed to find a solution giving developing countries with no manufacturing capacity the possibility to import generics from third countries. A compromise was found in December 2002 which received the support of all WTO members but the US. The EU is delighted that the US has now joined the international consensus.
In order to unblock the situation, the current Chairman of the TRIPS Council, Ambassador Menon (Singapore) held talks with the US government and a number of key developing countries in order to bridge the confidence gap.
As a rsult, the Perez Motta text, which determines how the mechanism will be used, and which is now adopted in full without any amendment, will be accompanied by a statement declaring the firm intention of all WTO members to use the system in good faith. The statement indicates that the main aim of the mechanism agreed today is to protect public health. It stresses the need to ensure that medicines reach populations in need and that they should not be diverted from the markets for which they
are intended. The statement is thus wholly complementary to the Perez Motta text and does not change it in any respect.
The solution found constitutes a key element in the fight against communicable diseases. However, measures to make drugs available must work in conjunction with other elements such as stable and functioning healthcare systems or better public awareness via education.
The EU has sought throughout to find a compromise solution to this difficult question, and will continue to work with other WTO members, with international organisations, with members of civil society and with industry to make sure that the deal is implemented in a full and timely fashion.
For more information:
http://europa.eu.int/comm/trade/issues/global/medecine/index_en.htm
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