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US, EU may take credit for drug deal

BS Economy Bureau in New Delhi | September01, 2003 10:15 IST

Developing countries are working out strategies to ensure that some poor nations do not switch sides to the US camp following the accord on making life saving drugs available to poor countries.

Trade experts said that the US and the European Union could try to take credit for the deal clinched on Saturday which would help them in pushing their case on agriculture.

The agreement thrashed out in Geneva simplifies patent rules to enable pharmaceutical companies to sell off-patent medicines to countries fighting public health emergencies such as Sars and the Bhopal Gas tragedy.

According to the deal, a two- point licencing procedure has to be adopted with the country facing a public health crisis required to notify the World Trade Organisation's Trips Council on compulsory licensing.

The country will then place orders with any drugmaker, which would have to supply the medicines in a different shape and colour compared with the original one.

The deal also keeps the issue out of the ambit of the WTO's dispute settlement body.

Though royalties would be required to be paid, the procedure is still to be worked out. The royalty fees is expected to be built into the cost of medicines to be supplied, government officials said.

The agreement is expected to benefit a large number of Indian companies who are low cost producers, officials added.

"WTO member governments broke their deadlock over intellectual property protection and public health today (August 30). They agreed on legal changes that will make it easier for poorer countries to import cheaper generics made under compulsory licensing if they are unable to manufacture the medicines themselves," a WTO press release said.

This is the first agreement on an issue on the Doha negotiations agenda.

At the Doha ministerial meeting of WTO members in November 2001, ministers had set a deadline of December 31, 2002 for finalising the deal but the US continued to oppose an agreement till last week.

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