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Home > Special Global Events > Cancun Ministerial Conference (10-14 September 2003) > News > Pre - Cancun Conference News > Proposed WTO deal set to bring hope to poorer nations

Proposed WTO deal set to bring hope to poorer nations

New Delhi: Preparations are set for a final and long delayed humanitarian deal at the World Trade Organization to allow poor countries to relax patent provisions on latest medicines and issue licenses to generic producers in India and Brazil to supply them at affordable prices.

'We are hoping to have a deal by the end of the day,' said the architect of the proposed deal, Singapore Ambassador to the WTO Vanu Gopala Menon.

Ensuring poorer states unable to manufacture medicines can import cheap generic drugs when they need to is seen as vital to beating major killers such as Aids and malaria. But it also means setting aside patent laws protecting multinational firms.

Agreement is crucial for the success of the WTO's current Doha Round of free trade talks, which is due to be discussed at a major summit in the Mexican city of Cancun next month.

Over the last five months, Mr Menon, who now heads the WTO's Intellectual Property Council, quietly worked behind the scenes to resolve the differences between the key players such as the US, the European Union, India, Brazil, and South Africa for implementing the Doha Agreement on trade-related intellectual property rights (TRIPS) and Public Health.

WTO members are expected to endorse the statement that Mr Menon had prepared to bring the US on the board.

The leading US pharmaceutical companies, particularly Pfizer, were unhappy with the proposed agreement and forced their government to block the deal last year on the ground that it would be abused by generic producers like Cipla and Ranbaxy in India to produce cheap copies of Viagra and other profit-making drugs.

Except for the US, the entire WTO membership had approved a draft deal last year to implement the complex 'paragraph six' mechanism requiring countries lacking manufacturing facilities to transfer their compulsory licences to generic producers in India and Brazil for supply of affordable medicines.

Faced with severe public criticism and the outbreak of Sars (severe acute respiratory syndrome) and Anthrax, the Bush administration was forced to give up its strident opposition to this agreement.

The final three-page chairman's statement that Mr Menon issued to members lists the 'the good faith' intentions for members to follow during the implementation of the 'paragraph six' mechanism.

It would ensure that the proposed Doha agreement on TRIPS and Public Health is not pursued for 'industrial or commercial policy objectives'.

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