PHM-Exch> India to move WTO panel against EU

[Claudio Schuftan]

From: Meghana Bahar <meghana at haiap.org>


 Nayanima Basu / New Delhi October 01

India may formally approach the World Trade Organization’s (WTO) dispute
panel against the European Union (EU) following the seizure of low-cost
generic medicine consignments in European ports meant for other developing
countries. The two parties have failed to reach an amicable solution 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 have already taken place but no
solution was at sight.

When a WTO member wants to invoke the provisions of the dispute settlement
mechanism, a consultation process is initiated. If the trading partners 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 has decided to take the matter 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.

Next month, Commerce secretary Rahul Khullar will meet EU director-general
for trade David O’Sullivan. The issue will dominate the talks besides
negotiating the impending free trade agreement.

Danièle Smadja, ambassador, head of the delegation of the European
Commission, had said in May that the commission is seeking to amend the laws
to facilitate export of medicines through EU’s ports without any hindrance.

There have been more than 20 cases of seizure of shipments of generic drugs
from India by European customs officials, citing violation of their patent
laws and labeling those as ‘counterfeit’ even though the medicines were
meant for other countries.

This has sparked an outcry from all developing countries – Brazil, Nigeria,
Mexico, Colombia and Peru among others – that import these medicines.
Besides, a number of civil society groups and NGOs have strongly opposed the
move as it has denied patients access to basic medication.

The seized drugs were manufactured by firms such as Ind-Swift, Cipla, Dr
Reddy’s, Aurobindo Pharma and Macleods Pharma for treating AIDS, Alzheimer’s
and blood pressure.

Developing countries have also criticised the move as a deliberate attempt
by rich nations and multinationals to diminish poor countries’ access to
cheap medicines and promote the usage of branded medicines produced by major
European drugs companies.

Source:
http://www.business-standard.com/india/news/india-to-move-wto-panel-against-eu/409835/
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