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The Earth Times | Posted November 12, 2001


WORLD TRADE ORGANIZATION, FOURTH MINISTERIAL MEETING
Resolution of TRIPS issue is WTO acid test

> BY DEVIKA SAHDEV
Copyright © 2002 by The Earth Times. All rights reserved

The declaration on Trade-Related Intellectual Property Rights and Public Health, though not officially titled so, is a key issue at the Doha meeting of the World Trade Organization. "If it turns out that it's not possible here to achieve meaningful declaration then all this talk about how the TRIPS agreement is flexible and balanced will be very difficult to maintain," said Ellen 't Hoen from Medecins Sans Frontiers. "If even on these fundamental issues they can't reach an agreement then it is clearly not balanced. I think that this will mean there will be pressure on Members to ensure its legitimacy.

Access to medicines is a major concern for developing countries, most of which do not have drug-producing capacities. Under the current TRIPS agreement, new drugs are patent protected for 20 years. Pharmaceutical companies, mainly in developed nations, can charge exorbitant prices for basic life-saving drugs. On September 19, over 50 developed countries, led by the Africa group, put forth a proposal to the TRIPS Council on improving access to medicine. Some developed countries, led by the United States and Switzerland, put forth a counter proposal diluting the language presented by developing countries. The resultant draft declaration on TRIPS and Public Health has taken a combination of the two proposals in an attempt to compromise.

There is now contention over paragraph four of the draft, which defines the circumstances that warrant the use of flexibility mechanisms in the TRIPS agreement. The flexibility mechanisms include the compulsory licensing clause, which can be used in national emergencies. There are two options in the draft - Option 1, which reflects the position of developing countries and Option 2, which reflects the position of the US, Switzerland, Japan and Canada among others.

"Nothing in the TRIPS Agreement shall prevent Members from taking measures to protect public health," states Option 1. "This option has clear language that makes total sense," said Hoen. "Also, as the World Health Organization has stated this week, access to health, access to medicines is a human right. How can countries fulfill their obligations to protect human rights if they can't take those measures? How can TRIPS take those obligations away?"

Option 2, on the other hand, states: "We affirm a Member's ability to use, to the full, the provisions in the TRIPS Agreement which provide flexibility to address public health crises such as HIV/AIDS and other pandemics, and to that end, that a Member is able to take measures necessary to address these public health crises, in particular to secure affordable access to medicines." The language of this option keeps the draft closer to the original agreement because, say some delegates, the US and others are concerned that Option 1 presents a risk that the flexible mechanisms will be abused.

Phil Twyford, Advocacy Director for Oxfam International, disagrees, saying that there are sufficient safeguards in the agreement to protect against indiscriminate use of paragraph four if Option 1 goes through. India, which has taken a lead role for TRIPS and Public Health, has a similar stand. "We believe that there should be a political declaration that says that nothing in the agreement should stop a member country from protecting its public health concerns or ensuring affordable access to medicines for all," said Shipra Biswas, Information Officer for the Indian Ministry of Commerce.

On Sunday the working group, or "Friends of the Chair" group, on TRIPS met for the first time. A smaller group, composed of eight nations including the United States, broke off in the evening to tackle the issues and look for an agreement. An agreement may be possible soon given the necessity for a conclusive result on TRIPS to ensure success at this Ministerial.

"TRIPS has become a sort of acid test as to whether rich countries are willing to compromise," said Twyford. "It will really undermine confidence in the WTO as an effective forum if it's unable to come to an agreement."

The European Union is a key player in the discussions because it has not taken sides in the disa-greement. The UK and Germany are supportive of the pharmaceutical position, while other members including Holland are supportive of Option 1. Ultimately, however, the EU will vote as one body.

At the end of the day on Sunday, there were reports that an agreement on TRIPS was close. Of course, 11th hour negotiations may change everything-or, in this case-five in the morning negotiations

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