|
Ronald Clark, staff member from US Trade Representatives Office |
We must protect intellectual
property rights, and dare not soften our stance. US
firms pioneer research and development in the most critical, future-oriented
sectors. Our economic growth
depends on policies which support not only the research, but also the
development and profit which stem from that research.
Our office thinks it imperative to abolish both parallel imports 
and
the exhaustion or "first
sale" doctrine.
We're handicapped because the EU Court of Justice, the Supreme Court of
Japan, and the rules of the WTO permit the exhaustion doctrine.
Congress passed a law in the late 1980's that prohibits drug imports by
anyone but the manufacturer, and that is what we want WTO and other countries to
adopt.
We do not take any position on whether the US
and western governments should pay for the
drugs for Africa. That policy does
not lie within the jurisdiction of the US Trade Reps Office.
However, when you negotiate with the UN and African states, we want you
to be cognizant of several practices that might need to be changed on the AIDS
drugs exported to African countries.
- Many governments set a VAT
- Many Third World Governments set import duties--Zambia, for example, puts a 5% duty on pharmaceuticals that raises prices still higher.
- Many countries require new drugs to be registered, and those fees can be as high as $12,000. The registration rules need to be specifically waived in AIDS-related treatment or prevention. This will be critical as AIDS vaccines are developed.
Our office thinks it is totally unreasonable for any
AIDS drugs to pay a
VAT or import duty in the recipient countries.
Our bottom line: protect our patents, eliminate parallel imports, oppose exhaustion doctrines, VATs, import duties, and registration fees.
| Deputy Chief of Staff | Health & Human Services | Treasury |
| State Dept. | USAID | Questions for US |