E-DRUG: essential action response to US-SA deal
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U.S. CAPITULATION TO SOUTH AFRICA MAY SAVE THOUSANDS OF LIVES
For Immediate Release, For more information, contact:
September 17, 1999 Robert Weissman, 202-387-8030
"The announcement today that the United States will stop bullying South
Africa to abandon efforts to make essential medicines available to its
population may save thousands of lives," says Robert Weissman, co-director
of Essential Action, a corporate accountability group founded by Ralph
Nader.
The U.S. Trade Representative and the South African government today
announced an agreement by which the United States would cease pressuring
South Africa on the issues of compulsory licensing and parallel imports,
two mechanisms to lower the price of pharmaceuticals. Compulsory licensing
enables a government to authorize generic production of a product while it
is still on patent, with royalties paid to the patent holder. Parallel
imports involves imports of drugs retailed in one country for resale in
another, so that the parallel importing country can benefit from lower
prices elsewhere in the world.
Through its Medicines Act, South Africa has sought to make use of these
two tools, but the United States had threatened trade sanctions against
South Africa if it implemented its law.
"Until the terms of the agreement are known, we cannot be sure the United
States intends to operate in good faith," cautioned Weissman. "The
agreement appears to call only for South Africa to agree to comply with
its obligations under the World Trade Organization intellectual property
agreement -- which South Africa has repeatedly declared it would do."
"If the U.S. position has in fact changed, it is largely due to the
courageous activities of AIDS activists who forced the issue on to the
public agenda," Weissman said.
"The announcement today appears to be a crucial victory, not only for
people with AIDS but others in South Africa who may soon gain access to
essential medicines they would otherwise go without," Weissman said. "But
much more needs to be done -- the United States must internationalize the
agreement with South Africa, so other nations can employ compulsory
licensing and parallel imports without fear of repercussion. And the U.S.
should immediately license the patent rights it holds to essential
medicines to the World Health Organization, which could then disseminate
low-priced versions of the medicines worldwide."
For more on these issues, see the web site of Essential Action's colleague
group, the Consumer Project on Technology, <http://www.cptech.org>
Robert Weissman
Email: rob@essential.org [manually added; WB]
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