DISCOUNTED AIDS DRUGS FOR AFRICA RESOLD IN EUROPE
USD 18 million worth of antiretroviral drugs produced by the British pharmaceutical company GlaxoSmithKline, which had been intended for distribution in five central African countries at discounted prices, are believed to have been diverted back to Europe between July 2001 and July 2002. "There are indications that perhaps some of these batches never even left Europe," said Alan Chandler on behalf of Glaxo. The drugs, which were sold in Europe for USD 5.50 each as opposed to 78 cents in Africa, ended up on pharmacy shelves in the Netherlands and Germany. Glaxo officials assured that they would continue making discounted drugs available to developing countries, but would also press for tighter controls and change the packaging of these medicines. How to prevent the diversion of discounted drugs away from the recipient country continues to be discussed in the WTO Council for Trade-related Aspects of Intellectual Property Rights (see BRIDGES Weekly, 25 September 2002).
"Cheap AIDS drugs resold in huge profit," GLOBE & MAIL, 4 October 2002; "Cheap AIDS drugs for Africa uncovered in Europe," REUTERS, 3 October 2002.
EU-CHILE TRADE AGREEMENT ONE STEP CLOSER TO IMPLEMENTATION
The European Commission on 3 October adopted the EU-Chilean Association Agreement, bringing the Agreement one step closer to implementation (see BRIDGES Weekly, 2 May 2002). Before the trade provisions of the Agreement can be put into practice, the Agreement must be adopted by both the European Council and the Chilean Congress, a development expected in early November. The accord covers all areas of trade relations. If and when approved, the commitments agreed on by the countries will go well beyond their current commitments in the WTO. The EU and Chile will create a free trade area in services and public procurement markets, as well as in investment. The agreement also includes strong rules and a focus on transparency in order to structure trade in goods, which will include provisions to assist trade in wine and spirits. At the same time, rules on competition, intellectual property, government procurement, and liberalisation of investment are also included in the package. Total trade between the EU and Chile in the year 2000 was equal to EUR 8.573 billion, making the EU Chile’s second most important trading partner after the US.
"Commission adopts EU-Chile Association Agreement," EU PRESS RELEASE, 3 October 2002; "Bilateral Trade Relations," DG TRADE, October 2002.
CIVIL SOCIETY QUESTIONS EU’S REFUSAL OF ACP PROPOSAL ON TWO-PHASE NEGOTIATIONS
During a meeting on 3 October between the European Commission and civil society groups, discussion was raised on the subject of the Commission’s new paper concerning trade and development (see Resources), and the EU’s new round of negotiations to create Economic Partnership Agreements (EPAs) with the group of African, Caribbean and Pacific ACP countries. Negotiations began on 27 September between the EU and ACP countries around creation of EPAs over the next five years (see BRIDGES Weekly, 25 September 2002). During the meeting, the Commission informed the civil society representatives that it could not agree to a proposal brought forth by the ACP group to divide the negotiations into two phases, with the first phase lasting one year. The Commission said that it felt the best way to pursue the negotiations was in a flexible manner, dealing with different regions as they are ready. Otherwise, the Commission said, the talks as a whole may be prolonged if the whole group must agree on a framework before the second phase could begin. A member of Eurostep, a civil society organisation, disagreed with this course of action, saying that the unity of the ACP may be compromised if the negotiations are undertaken on a region-by-region basis, and that Sustainable Impact Assessments may not be effective for the latter part of the negotiations.
"Commission Refuses to Agree to ACP Proposal on Firm Dates Regarding Phases in the Negotiations," EUROSTEP, 3 October 2002.