Brook K. Baker, Health GAP
July 2, 2003
The U.S. Trade Representative and its handlers in the White House and in
PhRMA are struggling to coordinate their ongoing campaign to limit the
impact of the historic Doha Declaration on the TRIPS Agreement and Public
Health. On June 22, 2003, the USTR made a "crucial," but ultimately
misleading "concession" in World Trade Organization talks over the
controversy about allowing developing nations to import generic drugs to
address public health needs, saying that it would back off of its
unilateral insistence on limiting the Agreement to a specified list of
infectious diseases, primarily AIDS, TB, and malaria.
Instead of insisting on this unwinnable disease limitation, the U.S. and
PhRMA are returning to the drawing board to accomplish three interlocking
goals: (1) to come up with a new disease restriction that is not as
perverse as addressing pandemic infections only, (2) to limit the countries
that would be eligible to import generic medicines produced abroad to least
developed countries and a few lower income developing countries only, and
(3) to erect even higher anti-diversion standards that will complicate both
generic production and importation.
In announcing that it was retreating temporarily from its insistence on
covering AIDS, TB, and malaria only, the U.S. is trying to recover
political ground lost at the WTO via its renegade rejection of an imperfect
compromise reached by the other 143 WTO members at December. That
compromise, reflected in Chairman Motta's text, would have allowed generic
manufacturers to produce and export medicines that addressed any and all
public health needs and would have permitted such export to a broad
spectrum of developing countries that unilaterally determined that they
lacked meaningful and efficient manufacturing capacity in the
pharmaceutical sector.
Unnamed U.S. officials have stated that the U.S. has given up on insisting
on a specific list of diseases, but U.S. Trade Representative Robert
Zoellick in a press conference at the mini-ministerial held in Sharm El
Sheik, Egypt, refused to confirm that the U.S. government was dropping this
demand. Instead, Zoellick paradoxically insisted that the U.S. had never
supported the idea that agreement could only apply to a "closed list" of
diseases, referring presumably to the highly stringent language that the
agreement could eventually cover other infectious diseases of similar
gravity and scope.
Zoellick's double-speak on U.S. obstructionism is matched, or even
exceeded, by Harvey Bale, president of the International Federal of
Pharmaceutical Manufacturers Associations who said "We feel we are
wrongfully being blamed for holding up progress in certain parts of the
(Doha) negotiation." Apparently, it doesn't matter to Mr. Bale that all
investigators agree that industry intervention at the White House in
November and December of 2002 prompted a hardening of the U.S. position on
disease coverage and ultimately that the industry sponsored the impasse of
December 20.
In addition revising history, the U.S. and its PhRMA co-conspirators are
hard at work trying to further limit the Doha Declaration without
re-opening the Motta text. Although the clues to their new strategy are
imprecise, they suggest that they U.S. intends to rephrase the scope of
covered diseases, presumably returning to the earlier U.S. position
emphasizing "grave" public health crises, such as AIDS, TB, and malaria.
This phrasing would, of course, ignore the clear language of paragraph 4 of
the Doha Declaration that addresses all public health concerns without
restriction: "We agree that the TRIPS Agreement does not and should not
prevent Members from taking measures to protect public health.
Accordingly, ? we affirm that the Agreement can and should be interpreted
and implemented in a manner supportive of WTO Members' right to protect
public health and, in particular, to promote access to medicines for all."
Even more significantly, the U.S. will attempt to further restrict the
number of countries that can access generic export from producer countries.
A letter from 22 U.S. and European pharmaceutical companies and three trade
associations clarified the industry's position that any agreement should
apply only to the world's poorest countries that truly lack pharmaceutical
capacity. Zoellick referenced this letter in his Egyptian press
conference and had earlier told the trade minister of the Philippines that,
in the U.S. view, the Philippines (and presumably Malaysia) would not be
eligible to import generic medicines from abroad because it had sufficient
manufacturing capacity. Harvey Bale addressed the country-eligibility
issue even more directly: "Our focus is on helping the countries that the
founding fathers of the Doha Agenda had in mind." According to Bale, it
would be a "gross exaggeration and a gross distortion" to give more
industrially advanced developing countries, such as India and China, the
same rights as "poor states like Haiti, Namibia or Bangeladesh."
The irony of Bale's formulation is that the Doha Declaration will require
producer countries like India and China to manufacture and export
life-saving generic drugs to a broad range of countries with insufficient
or inefficient pharmaceutical capacity. India and China aren't countries
that will "take advantage of Doha" to access cheaper medicines for
themselves, though, of course, it is perfectly legal for them to issue
compulsory licenses on any grounds whatsoever under the flexibilities of
the TRIPS Agreement. Instead, lowest cost, standard quality generics will
ultimately be produced in large measure by efficient producers in India and
China that reach meaningful economies of scale for a broad range of public
health medicines. To induce generic entry into low-income countries, it
will be necessary to aggregate markets, including markets with large
populations and meaningful purchasing power ? namely, those of
middle-income countries.
But, PhRMA is so intent on making high profits on sales to income elites in
middle-income countries that it is willing to sacrifice the lives of
millions of poor people to secure its market hegemony. Since U.S.
pharmaceutical giants have never seen a penny of potential profit that they
would willingly abdicate to a generic producer, they have chosen to slander
the intentions of India, China, and Brazil, solely because generic
manufacturers in those countries are poised to supply standard quality
medicines at a substantial discount over PhRMA prices. Accordingly, the
U.S. and PhRMA are scheming on how to coerce countries to voluntarily opt
out of the system and on defining gross-national-product and disease-burden
tests to greatly limit country eligibility.
With respect to their product diversion agenda, PhRMA and the USTR are
allegedly pushing for mandatory special packaging requirements and internal
policing mechanisms. This mandatory system is more stringent than that in
the Motta text which merely recommends that special labeling and marking be
used, but only when such product distinction is feasible and does not
significantly impact price.
Developing countries can expect no quarter from the U.S. which has a long
history of bad-faith dealing in Doha negotiations. It will keep on pushing
PhRMA's agenda while it mouths platitudes about its intention to find a
workable solution. Despite developing countries' reluctant accommodation
to the Motta text, they should not expect that the U.S. really intends to
reach a "compromise." For the U.S., others compromise ? the U.S. wins.
As Doctors Without Borders and many others have argued, developing
countries should dump that Motta text and act in good faith on the Doha
Declaration itself. That Declaration opens the door not only for
production for export via compulsory licenses but also production for
export via limited exceptions under Article 30. This is the easy,
expeditious solution recommended by the World Health Organization, the
European Communities, multiple NGOs, and many developing countries
themselves.
While the U.S. and PhRMA dither and dally, while they obscure and deceive,
millions of lives have been lost. Facing this stark reality, the Doha
Declaration expressed a degree of urgency, especially since limitations on
producing newer generics medicines for export will arrive with full global
force in 2005 (except for least developed countries). Global trade rules
concerning exceptions to patent rights have to be clarified so that
developing countries can amend their national legislation to make maximum
use of Doha flexibilities and so that generic manufacturers can reduce the
legal risk of their still risky economic investments. That clarification
was supposed to have happened by the end of 2002, but now, a full six
months later, the U.S. still blocks a global accord.
As the President of the U.S. is poised for a trip to Africa ? a continent
decimated by the AIDS pandemic ? is it too much to ask that he restrain his
PhRMA donors and that he chastise his USTR bully-boys? Could the U.S.
cease and desist from blocking a Doha accord and from seeking TRIPS-plus
intellectual property protections in its trade negotiations with Africa,
such as that with the South African Customs Union? Could the U.S. actually
concede that low-cost, standard quality generic medicines are a critical
component of a global response to the global AIDS pandemic whether those
generics are purchased under the U.S. bilateral program or the Global Fund
to Fight AIDS, TB, and Malaria? Do African lives really matter, except at
press conferences?
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