Vikram Kumar

US Treasury Dept.

Our concerns are different.  First, we see intellectual property rights endangered by the producers of generic drugs in India, Thailand, and Brazil.   The WTO has made it possible for generic producers to sell abroad.  Either the US helps poor countries buy US drugs or we lose the market.  Granted, we don't sell much in poor countries, but we need to protect important businesses in the US as well as patents. 

 We know that any government  can override patents for emergencies, or in cases of public interest or concern about anti-competition.  This is called compulsory licensing.  

 Secondly, the Harvard study  suggested the US pay $6-$10 per capita annually to  to treat AIDS in Africa;  that is too much but we can manage if we rely on the private sector.  Some  firms in Africa  have offered to provide treatment for their employees and their families, but don't want to buy the drugs.    If we offer a tax incentive for US-based corporations that provide AIDS treatment in the Third World, that might solve problems, including  infrastructure and accountability.    It also ensures protection of vital  economic personnel in African societies.  About 30% of the diamond miners, for example, are HIV+.   Without the foreign exchange from diamond exports, several African countries are unlikely to make any economic headway.  Corporations have little reason to expend money on AIDS treatment because of high unemployment and low training costs.  It is easy to find replacement workers.  We can lean on them to give treatment if we give them a tax break.

Likewise, we should consider a tax incentive for corporations that donate drugs for AIDS in Africa.  And how about a tax break for support programs:  Pfizer is setting up an institute in Uganda to train doctors and other personnel in detecting the lethal cryptococcal meningitis that can attack the HIV positive.  Pfizer is donating Diflucan for treatment, but needs to train their people in giving spinal taps for testing.     That program is worth supporting.  Why not give them  a tax incentive as well? 

We don't think the US should give billions to the global fund.  We can do more good with less money by giving tax-breaks to corporations to carry out anti-AIDS programs.  We think the costs are manageable. 

Deputy Chief of Staff Health & Human Services US Trade Rep.
State Dept. Questions for US USAID