The Union government is likely to approach the World Trade Organisation’s (WTO) disputes panel over the European Union (EU) for the seizure of low-cost generic medicine consignments at its ports which were meant for other developing countries. India and the EU have failed to settle this issue during the consultation process.
Earlier this year, India had filed a complaint against EU at the WTO disputes panel, but both sides were asked to resolve the matter bilaterally. Two rounds of negotiations on the issue took place but no solution was found. When a WTO member wants to invoke the provisions of the dispute settlement mechanism, a consultation process is initiated. If the two sides are unable to settle the dispute, a panel is set up to hear the case. The panel’s verdict is binding on both parties.
India has refused to soften its stance and decided to take it up at the highest level, with EU failing to amend its patent laws in relation to the European Commission’s Regulation 1383/2003. This mandates its members to detain shipments containing pharmaceutical products during transit through the European Union destined for developing countries on grounds of suspicion, according to senior officials in the Department of Commerce. "They have to first amend the laws and carry out a number of changes in their patent laws, which then would need to be passed by the European Commission. There is no question of pulling out of the dispute. We might have to take it up with the dispute settlement body," a senior official stressed.
This month, the Commerce Secretary, Dr Rahul Khullar, is expected to meet the EU Director-General for Trade, Mr David O’Sullivan. This issue may well dominate the talks to be held for a free trade agreement. Ms Danièle Smadja, Ambassador, head of the delegation of the European Commission, had said in May that the Commission was seeking to amend the laws to facilitate export of medicines through EU’s ports without any hindrance.
EU may be hauled to WTO disputes panel over seizure of generic medicines There have been over 20 cases of seizure of shipments of generic drugs from India by EU officials, citing violation of their patent laws and labeling those as ‘counterfeit’ even though the medicines were meant for other countries. Developing countries like Brazil, Nigeria, Mexico, Colombia and Peru have also criticized the EU’s high-handedness. A number of civil society groups and NGOs have also opposed such seizures because they deny patients access to basic medication.
The seized drugs were manufactured by several firms to treat various ailments. Developing countries have also denounced EU’s seizures as a deliberate attempt by rich nations and multinationals to reduce poor countries’ access to cheap medicines and instead promote the usage of branded medicines produced by major European drug companies.
Source: Exim News Service, New Delhi, 04 October 2010