THE RIGHT HONOURABLE
SIR LEON BRITTAN, QC
VICE-PRESIDENT OF THE EUROPEAN COMMISSION

RUE DE LA LOI 200. 1049 BRUXELLES
WETSRAAT 200. 1049 BRUSSEL

23rd March 1998
SG (98) D/2392

D(98) 10083

Dear Mr. M'Beki,

I am writing to you regarding a matter that is of serious concern to the European Community and its Member States.

It is my understanding that a law amending the South African Medicines and Related Substances Control Act would allow that patent rights be disregarded in order to secure affordable pharmaceutical products for the South African population. I also understand that an act of promulgation is still required for this law to enter into force.

I am concerned that the new law might conflict with the objectives of the Trade and Cooperation Agreement under negotiation between South African and the Community. Section 15C of the law in question would appear to be at variance with South Africa's obligations under the WTO Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPs) and its implementation would negatively affect the interests of the European pharmaceutical industry.

Having said this, I share your Government's concern for the protection of public health in general and the need to provide state of the art medicines at a reasonable cost to all layers of the South African population. Considerations of cost reductions in the health sector are also given high priority in the Community, but I believe that this can be achieved without undermining the necessary protection of intellectual property rights.

I would very much appreciate it if you would reconsider this matter in light of the above.

With all good wishes,

Sincerely,

Leon Brittan

Mr. T.M. M'Beki
Vice President of South Africa
Pretoria