Paris, 8 February 2003
Dear Sir, Madam,
On Monday the Chair of the TRIPS Council is expected to propose to the
WTO General Council to adopt the "Motta December 16 text" and to make
the following statement:
The first is that all delegations have reconfirmed their
commitment to the provisions of the Doha Declaration on the TRIPS
Agreement and Public Health and to the need to respect fully its provisions.
Secondly, delegations have made it clear that they see the system
that we are establishing under paragraph 6 of that Declaration as being
essentially designed to address national emergencies or other
circumstances of extreme urgency.
Third, delegations have recognized the need to avoid undermining
the importance of intellectual property protection for the development
of new medicines and have also reaffirmed that the TRIPS Agreement does
not and should not prevent Members from taking measures to protect
public health.
Having put on record these understandings, I would propose the adoption
of the draft decision contained in ...
Paragraph 6 was never meant to only address national emergencies or
other circumstances of extreme urgency, whether "essentially" or otherwise.
The objective of paragraph 6 was to ensure that countries without
production capacity could make effective use of compulsory licensing
which is a key TRIPS safeguard. Anyone who claims otherwise is
re-writing the history of the Doha negotiations.
The Motta text has no limitation to emergency situations, either in the
"main" solution or in the regional trade area solution. The fact that
Members were prepared to accept the Motta text save for the disease
scope limitation indicates that they were well aware that the paragraph
6 solution was not limited to emergency situations.
If the Motta text is accepted to apply to any public health problem, any
Member subsequently pressing for the adoption of the Motta text with an
understanding to limit the use of the paragraph 6 solution to emergency
situations indicates extreme bad faith and a desire to cripple the
solution by any means possible.
The adoption of this text would mean that countries without the
possibility to produce medicines are at a major disadvantage over
countries that do have the capacity. The Doha declaration confirms the
right of countries to issue compulsory licenses in paragraph 5 (b):
Each Member has the right to grant compulsory licences and the freedom
to determine the grounds upon which such licences are granted.
Whenever such a compulsory licence is granted the safeguards already
provided for in Art 31 TRIPS will have to be observed, so the interests
of patent holders are already preserved. Paragraph 6 is about effective
supply of a compulsory licence, not whether or not that compulsory
licence can be given in the first place. And yet that is exactly the
effect the Chair's note will have.
The proposed Chairman's statement would entrench a system with "Second
class" Members whose possibilities to exercise their rights under the
TRIPS Agreement and the Doha declaration will be limited compared to
countries that have the capacity to produce. It needs no mention that it
will be the people in the most disadvantaged countries who will suffer
disproportionably from this.
In effect these two different classes of Members will be constituted as
follows:
First class Members with manufacturing capacity will be able to use
compulsory licensing to address whichever public health problems they
have identified.
Second class Members without manufacturing capacity will be able to use
compulsory licensing to address public health problems only in case of a
national emergency or other circumstances of extreme urgency. In theory,
they can issue a compulsory licence to address any public health
problem; in practice they can only get supplies of the medicines they
need under a compulsory licence in an emergency situation.
Also, in terms of the use of compulsory licensing in the public sector,
the TRIPS Agreement places "public non-commercial use" ("government
use") on the same footing as emergencies and yet the Chairs text would
exclude this situation as well.
As far as the WTO, the TRIPS Agreement, the Doha Declaration and the
solution to paragraph 6 are concerned, there aren't supposed to be first
class Members and second class Members. Adopting this Chair's note would
result in the progress that was made at Doha being utterly reversed.
The proposed text would indicate that the 'solution' cannot be used
for the production and purchase of products meant for the prevention of
an emergency. Even in an urgent situation the solution could not be used
to prepare, only when the urgency was extreme. For example how long
would a country have to wait that attempts to prevent an outbreak of an
infectious disease by vaccinating or a country that wants to stock
medicines they may need in the future (for example to treat people
suffering from a possible anthrax outbreak). It is unacceptable that a
subset of developing countries may only provide pharmaceutical care
after a public health situation has gone out of control.
Limiting the operation of the paragraph 6 solution to emergency
situations would be taken by some Members as "proof" that compulsory
licensing in general is only designed to address national emergencies or
other circumstances of extreme urgency. This was a battle fought time
and time again before Doha and despite the crystal clear paragraph 5(b)
of the Doha Declaration, will have to be fought again if this text is
adopted. An obvious consequence of adopting this note will be pressure
in the future for countries to narrow their options under TRIPS to issue
compulsory licenses on public health grounds.
The third paragraph of the proposed text is superfluous. At numerous
occasions Members have confirmed their commitment to the TRIPS agreement
including in the Doha declaration itself. No country has ever proposed
to undermine intellectual property. However WTO members have recognised
in the Doha declaration the concerns about the effects of patents on
medicines prices. A concern the Chair does choose not to reiterate in
his statement.
To highlight "patents" and not "prices" in itself is rewriting the Doha
declaration on TRIPS and Public Health.
There is a near absence of innovation for diseases that affect people
in developing countries. It is an illusion to think that this market
failure will be remedied through the IP system. The financing of the
research and development of new medicines for neglected diseases will
require additional and alternative global approaches. To therefore hail
the importance of the IP system for the development of new drugs for
people in developing countries might not be entirely appropriate in this
context.
Let no delegation be under the illusion that a Chair's note,
reflecting an agreement amongst all negotiating parties, can have no
legal effect. The Chair would not be making the note if it had no legal
effect and there are grave grounds to worry that under the Vienna
Convention it could be held to have legal effect. As a result if the
Motta text were used outside emergency situations, the exporting Member
would open itself to dispute settlement for breach of its obligations
under Art 31(f) TRIPS.
In conclusion an agreement to this text would be a disastrous final
chapter in the 2 year old history of the Doha declaration on TRIPS and
Public Health.
If Members agree to this text it will no longer be possible to maintain
that the TRIPS "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." This was
the main objective and achievement of the Doha process which the Chair's
statement will undo.
We therefore propose that the Members of the WTO take into consideration
the following alternative wording for the Chair's statement:
Delegations have made it clear that they see the system that is being
established under this proposed solution as being designed to promote
access to effective treatments to address public health problems
afflicting countries with insufficient or no manufacturing capacities in
the pharmaceutical sector as called for in paragraph 6 of the Doha
Declaration on the TRlPS Agreement and Public Health.
Regardless of any accompanying statement, Chairman Motta's 16th December
text is a compromise that is far from ideal because it fails the test of
being simple, workable and economically viable. It falls far short of
what the World Health Organization's proposal of 17 September 2002 could
have delivered or still could deliver. We maintain our position that it
is not too late to reject the proposals and explore alternative ways to
achieve what the Doha declaration set out to do: access to medicines for
all.
Sincerely Yours,
Ellen 't Hoen
For information contact:
Before proposing the adoption of the text of 16 December 2002,1
would like to put on record a number of understandings which have
emerged from the discussions leading up to the formulation of this text.
We urgently call upon the WTO Members to reject this statement for the
following reasons:
MSF Campaign for Access to Essential Medicines
Ellen 't Hoen: + 33 6 22375871
Christopher Garrison: + 44 7720470622
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