Finally, WTO approves deal on cheap drugs

WTO negotiators had earlier appeared to reach a deal on Wednesday last, when a compromise proposal emerged with backing from the US, which had blocked earlier initiatives to boost access to generics for poorer countries. But the talks ran into new obstacles on Friday, when countries like the Philippines and India voiced serious doubts over how the new rules might be interpreted once in place. The Indians have been pressing that the rules are such that the poor should not be made to pay more for generic products.

The finalisation of the deal ahead of the Cancun ministerial round of WTO from September 10 to 14 could be crucial especially in easing the psychological barriers of mistrust between the developed world and developing countries and paving the way for some more crucial decisions at Cancun.

While WTO issues are seen in the light of pure trade and economic issues, India’s position is critical vis-a-vis its stand and the gains that it gets on this platform specially as there are mass humanitarian issues involved at the WTO with regard to the future of healthcare for the poor and the future of farmers through the proposals on agriculture. While step one on pharma could have gone India’s way, step two and India’s gains in agriculture issues at Cancun next month would be crucial to decide India’s gains.

Today’s breakthrough at the WTO came after Egypt, Kenya, Morocco, Tanzania, Zambia and Zimbabwe led impassioned calls from African countries for opponents to the proposal to reconsider. Delegates from India, Kenya and South Africa also lobbied late on Friday to persuade them to back the compromise.

Access to generic versions of antiretroviral aids drugs is a life-or-death issue for the estimated 30 million Africans suffering from the disease, according to UN figures — out of a total 42 million worldwide.

The agreement resolves an issue that has cast a deep shadow over global free trade talks since late 2001. The US has been a major power blocking any deal on pharma issues especially as US pharma companies owners of the largest list of patented drugs fear losing turf in world markets if cheaper options are allowed to be present in markets. Their fears stem from the dangers that these drugs using the WTO sanction could spread to other lifestyle drugs and appear as cheaper options in markets even in developed countries, giving them a run for their money.