WTO Facilitates Generic Drug Trade

Public health in developing nations is judged as more important than international trade profits, tariffs and duties.

According to Bloomberg News, poor countries may soon have access to life-saving generic versions of patented drugs. This news must give hope to African nations ravaged by AIDS and other developing countries threatened by an outbreak of bird flu.

The World Trade Organization (WTO) has proposed an international trade treaty amendment that will enable developing nations that lack a robust pharmaceutical drug industry to import generic drugs. Under the amendment, participating poor countries needn't fear patent lawsuits from large multinational drug makers.

In late October 2007, the European Union assembly's trade committee accepted the WTO's amendment. This endorsement by the European parliamentary committe gives credibility to the WTO's efforts to pass the treaty amendment.

It's important to understand, however, that the full parliamentary assembly has to approve the amendment. If so, the EU will be on its way to changing the WTO's Agreement on Trade-Related Aspects of Intellectual Property Rights.

Which global generic drug companies are positioned to gain should drug patents in developing nations be waived? Winners will include Teva Pharmaceuticals and Dr. Reddy's Laboratories.