World Trade Organization Brokers Deal to Provide Cheap Generic Drugs

In August, the World Trade Organization brokered a final deal to bring cheaper generic drugs to the developing world. Poverty in developing countries makes it difficult for individuals and governments there to afford expensive medications that fight diseases such as AIDS.

Under World Trade Organization rules, developing countries could produce generic drugs for domestic consumption, but could not export or import such generics. The new WTO agreement allows developing countries to import generic drugs produced in other countries provided that it is done to “protect public health” rather than for commercial exploitation.

The pact also requires developing countries to take steps to ensure that such generics are not smuggled into developed countries. Generics produced for developing countries, for example, will have to be packaged differently or be of a different color or shape than the non-generics sold in the developed world.

Sources:

WTO gives final approval to cheap drugs deal. Associated Press, August 30, 2003.

World Trade Organization finally agrees cheap drugs deal. Fiona Fleck, British Medical Journal, 2003;327:517 (6 September).

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