AIDS Healthcare Foundation (AHF) has lauded the Government of Thailand for its vow to continue with plans to issue compulsory licenses for the manufacturing and importing of generic versions of lifesaving drugs, including AIDS drugs, despite the fact that the office of United States Trade Representative (USTR), elevated Thailand to its 'Priority Watch' List.
On Monday, the USTR released its annual 301 Report, which includes a Watch List of countries that the USTR believes are threats to the global drug industry. AIDS Healthcare Foundation chastised the office of U.S. Trade Representative for penalizing Thailand by placing the country so prominently on the trade group's Watch list for what AHF notes was Thailand's exercising of its World Trade Organization-granted rights to protect public health.
"In elevating Thailand to 'Priority Watch' designation -- the highest urgency designation -- the USTR is seeking to punish the country despite the fact that Thailand adhered to international law in its efforts to increase access to affordable lifesaving AIDS and other drugs for its citizens," said Michael Weinstein, President of AIDS Healthcare Foundation. "We commend the Government of Thailand for its legally-permissible actions to safeguard the health and welfare of its people, and are saddened, but not surprised, that the office of the Trade Representative would bow so willingly to the drug industry's lobbyists."
While Thailand stands steadfast on compulsory licensing, the USTR appeared to succumb to pressure from the Pharmaceutical Research and Manufacturers of America (PhRMA), the deep-pocketed drug industry lobbying group which had submitted its own PhRMA Special 301 Submission 2007 pointing out what the industry believes are threats to the pharmaceutical industry and its worldwide profits. PhRMA's submission to the USTR recommended that Thailand be elevated to the USTR's higher 'Priority Watch' designation.
"In seeking to provide lifesaving AIDS and other drugs to its people, Thailand worked within World Trade Organization guidelines to increase access to affordable medicines," added AHF's Weinstein. "The same WTO agreement that expanded patent protection globally also allowed a country like Thailand to take action protecting public health. It's no surprise that the drug industry would strong-arm the US Trade Representative on this issue, as the industry seeks to exploit the developing world to compensate for lack of new industry innovation."
According to the USTR mission statement, "American trade policy works toward opening markets throughout the world to create new opportunities and higher living standards for families, farmers, manufacturers, workers, consumers and business."
"American trade policy can't simultaneously try and raise 'living standards for families' while its actions allow these same families to die for what amount to incremental increases in drug industry profits," noted AHF's Weinstein. "Thailand represents just one half of a percent of the global market for pharmaceuticals. In trying to protect the health of its citizens, Thailand has unwittingly become the line in the sand in the drug industry's push for its expansion in the developing world."
Flexibilities under the World Trade Organization's (WTO) Trade-related Aspects of Intellectual Property Rights (TRIPS) Agreement allow governments to issue compulsory licenses (including royalty payment to the patent owner) if the country deems it necessary and appropriate to protect the health of its citizens. Thailand's most recent action under TRIPS public health guidelines include its Ministry of Health's move to produce an affordable version of Abbott Laboratories' two-in-one AIDS medicine, Kaletra following stalled price reduction negotiations between the Government of Thailand and Abbott to reduce the price US $2,200 (per patient yearly) to US $1,000.