Drug seizure row headed for amicable end

India is “hopeful” of finding an amicable solution to the drug seizure issue with the European Union (EU), even as the two sides are fighting it out fiercely at the World Trade Organization (WTO).

“What was done to the third world countries’ shipments by the Netherlands was actually a misreading of the EU notification…. The loopholes in the notification would soon be removed by amending the laws so that there’s no repeat of such seizures,” Commerce and Industry Minister Anand Sharma said after having a closed-door meeting with EU Trade Commission Karel De Gucht, as part of the 42nd Asean Economic Ministers meet.

He also said the EU trade commissioner had understood the sensibilities concerning generic drugs and their importance. “We are looking at taking forward the negotiations between India and EU for a bilateral trade and investment agreement. We have also underscored India’s own ambitions of movement of natural persons under Move IV,” Sharma added.

The problem started almost two years ago, when a generic drug shipments, on route from India to Brazil, was seized by the Dutch Customs during transit, citing violation of European patent laws. Developing nations have criticised the move as a deliberate attempt by rich nations and multinationals to diminish poor countries’ access to cheap medicines.

Both sides would sit for 11 round of negotiations on the free trade agreement (FTA), followed by a meeting between Commerce Secretary Rahul Khullar and EU Director-General for Trade David O’Sullivan.

“The EU has also recognised the fact that there is an asymmetry between India and EU when it comes to development and tariffs and it has been accepted in the negotiations. So, the level of tariff reduction would be marginally different,” he said.