WTO for cheaper drugs in developing countries

As generic drugs are gaining currency in several developing countries, the World Trade Organisation (WTO) has proposed an amendment to facilitate the availability of cheaper drugs in poorer nations.

“The proposed amendment will allow export of generic drugs in certain circumstances to address health-related issues in developing countries and provide cheaper drugs,” WTO Deputy Director General Harsha Vardhan Singh said.

The amendment would, however, need to be ratified by two-third of the WTO member-countries numbering 150 at present, he told Business Standard. “The member-countries had been discussing the issue. Some would need the approval by their Parliaments before they can form any view at WTO,” he added.

 

Singh noted that generic drugs have been an issue in terms of legal obligations on member countries. “It has been discussed in other international forums as well, including TRIPS (Trade-related Aspects of Intellectual Property Rights),” he said.

WTO is an international forum for governments to negotiate trade agreements and settle trade disputes. TRIPS is a WTO-administered international agreement that sets down minimum standards for many forms of intellectual property (IP) regulation on WTO members.

Major developing nations — notably India, China and Brazil — have been espousing the right of poorer countries’ access to cheap generic medicines at WTO. However, developed nations, such as the US, Canada and Japan, have been votaries of branding counterfeits or copy of patented drugs with fake/spurious ones.

Singh was in town to deliver a talk here last evening on the ‘Importance of WTO for Good Governance and Enhancing Opportunities’ organised by Lucknow Management Association.

He underlined that lack of proper transmission of information between member-countries was the cause of about 50 per cent of disputes coming before WTO for resolution.

“Trade disputes are broadly in line with the share of a member-country in world trade. Now, the developing countries are also having trade disputes with developed countries and among themselves, which signifies increasing international trade,” he added.

Singh informed WTO was evolving a ‘Made in the World’ concept, which was based on value addition in a finished product by different countries rather than revenue generation.