WTO and Health

Introductions

Summary of the session

International Organisations WTO GATS TRIPS Brazil South Africa Video!!!

International Organisations

What are they?– UN– WHO– WTO

WTO

World trade organisation Founded in 1995 from GATTs the only international organization dealing

with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.

Trade liberalization

How the WTO works

Rounds of negotiations One member one vote Creates treaties Binding rules

Why it has such and impact

It has Bite Trade courts punishes infringements Treaties prevent evasion of free trade

promises Countries monitored in periodic reviews

Infringements

Countries can say that another country has broken the agreements

A review A panel decides decision

SO … how does all this impact on health?

BRAINSTORM

Two explicit ways!

General Agreement on Trade in services (GATS)

Trade related intellectual property rights (TRIPS)

GATS

General agreement on trade of services What is a service?

– Anything that you can’t drop on you foot (160 categories)

Health as a service

GATS…

Doesn’t force health services into agreement

If put health in the agreement – can’t take it out

TRIPS

Trade related intellectual property rights. Treaty signed in 1994 as a result of the Uruguay

round. Sets standards for patenting Based on industrial country standards Developing countries were given a grace period to

bring their practices in line Dictates the minimum protection required by each

member on intellectual property

To make you think

‘Our combined strength enabled us to establish a global private sector-government network which laid the groundwork for what became TRIPS’– Edmund Pratt, CEO, Pfizer

Patents

Grants monopolies Patent on process and product (article 28) The patents last for 20 years (article 33)

So what does this mean?

Drug prices are high – set by pharmaceutical companies

People and governments can’t afford them

Alarm bells!!

Only started ringing after the ‘ink was dry’ on the agreement– consumer groups– developing country generics industry– groups campaigning on ‘patenting of life’– HIV crisis

Agreement followed by renewed pressure for TRIPS compliance from US

Doha Round

Reinforced flexibility within TRIPS Recognised need to protect public health Encourage research and development

Compulsory licenses

Countries can issue them Have to have legislation 6 month rule How to produce them? Canada and India

So why aren’t there lots of generics?

Difficult to produce Complicated process Uphill struggle

Who has taken advantage?

Malaysia issued a compulsory license in 2004

Cost of ARV’s is 17.4% of the cost in 2001 Six times the people are treated for the same

money Patent holders also dropped their prices

Brazil

Health minister announced a compulsory license Drug companies reacted Drug prices cut by pharmaceutical companies – 40%

in some cases Providing free ARV treatment Can legally make or import generic drugs if the

patent holder doesn’t manufacture it locally within 3 years

South Africa

Pharmaceutical companies brought a court case (Pharmaceutical Manufacturers Association)

Part of the legislation in SA does not fit in with TRIPS – giving health minister the right to import generic drugs

Supported by WHO Lots of international pressure Dropped the case and paid the costs

New treaties

Regional free-trade agreements - IP included under the agreement– US proposals would

restrict grounds for compulsory licensing

extend patent holders monopoly beyond 20 years