February 2, 1998 Ms. Charlene Barshefsky United States Trade Representative 600 17th Street Washington, D.C. 20508 Dear Ms. Barshefsky: We are writing to urge that the Administration respond to a law recently enacted by the Government of South Africa which effectively abrogates the intellectual property rights of foreign pharmaceutical companies operating in South Africa. These rights are guaranteed by the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), to which South Africa is a signatory. The new law contains at least two egregious provisions. First, it permits the parallel importation of patented products and second, it allows for the administrative expropriation of patented technology. Both provisions are violations of the TRIPS Agreement. Article 28 of the Agreement obligates member countries to prohibit parallel imports of patented products and Article 27 prohibits discrimination on the enjoyment of patent rights based on the field of technology. As South Africa seeks to establish itself in the world market, it needs the assistance of the international community to create jobs and economics opportunity. Weakening intellectual property protection in any field is certain to lessen, rather than enhance South Africa's ability to attract vitally needed foreign direct investment. We hope to work with the South African government in its pursuit of equitable social reforms, including those within the health sector. However, the implications of this law are so great that in the absence of its repeal, we must urge you to pursue all appropriate actions, including if necessary with the WTO. Sincerely, Congressman Bob Menendez (D-NJ) Ranking Member House Subcommittee on Africa Congressman Edward Royce (R-CA) Chairman House Subcommittee on Africa Senator Bob Toricelli (D-NJ) Senator Frank Lautenberg (D-NJ) Congressman Chris Smith (R-NJ) Congressman Howard Coble (R-NC) Congressman Tom Lantos (D-CA) Congressman Rodney Frelinghuysen (R-NJ) Congressman Frank Pallone (D-NJ) Congressman Donald Payne (D-NJ) Congressman Bob Franks (R-NJ) Congressman Jim McDermott (D-WA) Congressman Scott Klug Congressman Rob Andrews (R-NJ) Congressman Steve Rothman (D-NJ) Congressman Ken Calvert (R-CA) Congressman Steve Chabot (R-OH) Congressman Mark Sanford (R-SC) Congressman Bill Pascrell, Jr. (D-NJ) Congressman Carrie Meek (D-FL) Congressman Sam Gejdenson (D-CT) Congressman James Traficant (D-OH) Congressman Dan Burton (R-IN) Congressman Gary Ackerman (D-NY) Congressman Brad Sherman (D-CA) Congressman Eni Faleomavaega (D-AS) Congressman Gerald Solomon (R-NY) Congressman Martin Frost (D-TX) Congressman Elton Gallegly (R-CA) Congressman Frank LoBiondo (R-NJ) Congressman John Hostettler (R-IN) Congressman John Peterson (R-PA) Congressman Merill Cook (R-UT) Congressman Jim Davis (D-FL) Congressman John Porter (R-IL) Congressman Edolphus Towns (D-NY) Congressman Jim Saxton (R-NJ) Congressman David Price (D-NC) Congressman David Drier (R-CA) Congressman Don Manzullo (R-IL) Congresswoman Carolyn Maloney (D-NY) Congressman Stephen Horn (R-CA) Congressman Robert Wexler (D-FL) Congresswoman Julia Carson (D-IN) Congressman Michael Pappas (R-NJ) Congresswoman Juanita Millender-McDonald (D-CA) Congressman Dana Rohrabacher (R-CA)