[Commons-Law] Supachai says compulsory licensing of drugs acceptable

[Shishir K Jha]

[August 24, 2007]
http://ipcommunications.tmcnet.com/news/2007/08/24/317396.htm?p=ims

Thailand: Supachai says compulsory licensing of drugs acceptable
under WTO rules

The use of compulsory licences for drugs is a practical step
developing countries can take to exercise their rights under the
World Trade Organisation's intellectual property rules,
according to Supachai Panitchpakdi, the secretary-general of the
United Nations Conference for Trade and Development (Unctad). Dr
Supachai said the WTO agreement on trade-related aspects of
intellectual property rights (Trips) allowed members to invoke
compulsory licences to manufacture drugs or import them from
cheaper sources if necessary.

''There are two options in times of constraint or crisis,'' he
said. ''They can either manufacture drugs themselves or import
them from other sources that are cheaper. Unctad has not opposed
the idea.'' Earlier this week the Thai government said it would
import generic versions of the popular heart disease drug Plavix
from India. Officials had already issued compulsory licences for
the Aids drugs Efavirenz and Kaletra.

Dr Supachai, who before joining Unctad was secretary-general of
the World Trade Organisation, said he was glad Thailand's
compulsory licences on Aids and heart drugs had triggered global
price reductions.

However, he said, the pharmaceutical industry should be more
co-operative toward Thailand after it had invoked the compulsory
licence.

''Drug manufacturers should negotiate with Thailand. They are
not right that they are not co-operative with us. There are many
countries which want to invoke the right before us, but they
have hesitated to do so. A compulsory licence is the only
measure that the WTO permits,'' he said on August 23 in Bangkok.

Dr Supachai also said developing countries should better utilise
intellectual property rights over their biodiversity.

He said the outlook for the current WTO round was more positive
on the issue of farm subsidies, although the US president's
fast-track authority to negotiate trade deals has expired.

The Doha trade round has stalled over disagreements on farm
subsidies and opening the agricultural and manufacturing
sectors. The round is currently handled by the WTO in Geneva.

''The progress has been good. There have been clear figures as
to what extent the US can decrease its domestic support. There
hasn't been much talk on manufacturing. This will require a
rather long talk,'' he said.

Dr Supachai said the US has proposed cutting $18-20 billion in
farm subsidies, while developing countries had come up with
$10-12 billion and the EU $11-12 billion in the medium range.

He said the WTO could utilise agreements regarding developmental
aspects to benefit poor nations even though trade aspects had
not been finalised.

Unctad plans to focus on the impact of globalisation on
developing and least developed countries at its next meeting in
Ghana, he said. On the agenda will be job losses and welfare
benefits, he said.

In addition, Unctad would discuss ways to create rules for
financial aspects of globalisation such as the accounting of
hedge funds, for example.

''We have clear rules on trade globalisation and IP, but we have
none for financial aspects. Hedge funds have high leverage in
risky assets, yet they don't report that to anybody,'' he said.

Dr Supachai said developing countries must strengthen science
education curriculums and R&D if economic growth is to be
sustainable.

He said trade and investment among developing countries has
gained more importance, accounting for one third of world trade,
which has grown two-fold during the past five years.

Dr Supachai also warned the Bank of Thailand to appropriately
set priorities on an inflation-targeting monetary policy
framework.

He said worldwide inflation had been subdued in the past due to
the emergence of a huge labour force in China, but inflation has
began to rise during the past few years as Asian energy demand
has risen. ''We need to take care of inflation, but we should
not exaggerate it. This is because the economy otherwise would
not be going in the direction we want,'' he said.

Dr Supachai said the strengthening baht against the US dollar
should be considered an opportunity for local firms to expand
overseas, just as Malaysian firms have done.

The business sector should remember that the baht has actually
depreciated against certain currencies.

He said the central bank's capital control measures could be
used as a tool to handle volatility in the financial markets.

Copyright 2007 Thai News Service, Source: The Financial Times
Limited


Shishir K. Jha