Brazil, India to launch WTO row over EU generic drugs seizure next year, barring EU climb-down

Author: Juliane von Reppert-Bismarck
22 Oct 09 | 18:23 GMT+1

IN BRIEF
Brazil and India are set to launch a trade challenge early next year against the European Union for blocking imports of generic drugs, MLex has learned.

Geneva – Brazil and India are set to launch a trade challenge early next year against the European Union for blocking imports of generic drugs, MLex has learned.

The two countries have been considering a case since last December, when Dutch customs officials seized a shipment of generic drugs heading from India to Brazil (see MLex coverage here).

Barring a last-minute climb-down by Brussels, the two countries are working to simultaneously launch a request for consultations with the EU before the World Trade Organisation.

Brazil and India have become increasingly frustrated with the EU’s refusal to give in to long-running complaints, and have lost hope that Brussels will change its tack.

The fight reflects a growing concern that customs rules are increasingly being used to influence trade flows indirectly, a trend that is expected to deepen during the current economic downturn.

It also highlights fears among advanced economies such as Europe, the US and Japan on how to protect intellectual property and patent rights ranging from pharmaceuticals to food and industrial design.

Dutch officials at Schiphol airport in December 2008 seized about 500 kilos of Losartan, a generic drug against high blood pressure, a significant health concern among Brazilians.

Made by leading Indian generics maker Dr Reddy’s, the shipment was destined for EMS, one of Brazil’s major drugs firms. At the time it was seized the freight was officially in transit.

It is understood Dutch customs officials were in contact with Merck & Co, Dupont Co and Merck Sharp & Dohme, which jointly hold the patent for Losartan’s trade-named equivalent Cozaar.

The seizure is legal under EU customs rule 1383. This regulation sets out the conditions for action by customs authorities when goods are suspected of infringing an intellectual property right “when they are entered for release for free circulation, export or re-export.”