News

WTO eases rules on drugs for poor

By Frances Williams in Geneva
Published: December 6 2005

After more than two years of haggling, World Trade Organisation members on Tuesday approved a change in WTO intellectual property rules to make it easier for poor countries to import cheap copies of life-saving drugs.
The move, which marks the first amendment to WTO rules since the world trade body’s creation a decade ago, is seen as an essential part of a “development package” for poor countries that trade ministers hope to approve at their meeting in Hong Kong next week.
“This is a landmark achievement that we hope will help developing countries devastated by HIV/Aids and other public health crises,” said Rob Portman, US trade representative.
Peter Mandelson, European Union trade commissioner, said the deal was a positive signal for Hong Kong and “a first contribution for a Hong Kong ministerial development package”.
A development package is one of the few firm outcomes expected next week now that WTO members have abandoned hopes of a full-scale blueprint for completing the Doha global trade talks in 2006.
Tuesday’s decision follows last week’s agreement to give least developed countries until 2013 to implement WTO intellectual property rules. They already have until 2016 to introduce patents on pharmaceuticals.
Health and development campaigners had urged rejection of the accord, which translates a waiver to the rules agreed in August 2003 into binding trade law, as burdensome and unworkable.
The waiver – and the new rules – enable poor nations that lack the capacity to produce their own medicines to import generic copies of branded drugs under compulsory licence. Previously countries could only break patents for drugs produced by domestic manufacturers to serve the home market.
However, the waiver has never been used, partly because exporting countries have to change their own domestic patent legislation. Norway, Canada and India have done so while South Korea and the EU say their new laws will shortly come into force.
In response to US concerns over drug piracy, a separate statement by the chair of the WTO’s ruling general council yesterday makes clear the provisions are meant to help poor nations tackle public health needs.
In addition, industrialised nations have said they will not use the provisions and a further 11 WTO members – including Israel, South Korea, Mexico, Turkey and Singapore – have said they would only use them for emergencies. The waiver will continue in force until the new rules are ratified by two thirds of all 148 WTO members, with a deadline of December 1 2007.