Brasília – The governments of Brazil and India are now in the first phase of a trade dispute, at the World Trade Organization (WTO), with the European Union (EU), and more directly with the Netherlands. The objective, according to the Brazilian diplomats, is to guarantee the right of developing countries to produce generic drugs. The divergence started in December 2008, when generic drugs from India headed for Brazil were seized at a Dutch port.
In the first phase of the dispute, a formal consultation request is filed. At this phase, issues are being presented pertaining to intellectual property rights for pharmaceutical companies and access to medication in poor countries.
Brazilian negotiators believe that seizures of medication are a means for wealthier countries to exert pressure to increase their intellectual property demands, which in turn should lead the price of products for end consumers to increase.
The Brazilians also claim that seizure of generic drugs is part of a system used by the Europeans. The European Union, in turn, states that it must inspect generic drugs in transit to prevent fake drugs.
The discussion was prompted by the seizure of a 570 kilogram cargo of losartan potassium – which is used in the manufacturing of arterial hypertension medication. The material was retained for 36 days and then shipped back to India, which it had left headed for Brazil.
According to data supplied by the Brazilian negotiators, there were over 20 drug seizures in India in 2008. According to estimates, in 2008 alone, the Indian generic drug industry posted revenues of US$ 4.9 billion.
*Translated by Gabriel Pomerancblum
