Geneva, 12/6/2005 - The International Federation of Pharmaceutical Manufacturers & Associations (IFPMA) said that it welcomes the decision reached today by the WTO TRIPS Council and General Council to amend the WTO TRIPS Agreement by setting out the specific circumstances that justify export compulsory licenses. This amendment effectively and permanently implements the waiver of TRIPS Art. 31(f) and (h) created by the WTO General Council Decision of 30 August 2003.

“The success in reaching this agreement is testimony to the leadership of the Kenyan Chair of the General Council and the other members of the African Group within the WTO,” said Dr. Harvey E. Bale, Jr., Director-General of IFPMA. “Today’s agreement addresses the needs of countries lacking manufacturing capacity, while also preserving the TRIPS mechanism, which is critical for continuing the innovation essential to addressing the health needs of all countries.”

The TRIPS Amendment agreed to today will allow developing countries with no or insufficient pharmaceutical manufacturing capacity to access alternative supplies of medicines in the event of a public health crisis. The Amendment includes safeguards to ensure that export compulsory licensing is used, as originally intended, for public health purposes and not to achieve industrial or commercial goals. WTO Members also commit to prevent diversion of products away from the intended recipient country, so that poor populations are not deprived of the medicines intended for them. The amendment should ensure that only countries which truly lack pharmaceutical manufacturing capacity will be able to use export compulsory licensing.

“Today’s agreement shows that the WTO’s multilateral, consensus-based process can work effectively. Hopefully, this success will be replicated in other discussions at the WTO’s forthcoming Ministerial Meeting in Hong Kong, to the benefit of the Doha Development Agenda,” added Dr. Bale. “The pharmaceutical industry remains committed to expanding access to needed medicines around the world, through its many successful partnership programs, targeting a broad range of diseases in developing countries.”

For more information on health partnership programs in developing countries, visit www.ifpma.org.