The EU promises more trade, economic opportunities and lower prices through new trade agreements. In Thailand, civil society organisations are raising the alarm: They fear that the planned free trade agreement with the European Union will endanger access to affordable medicines. This is due to additional intellectual property rights for the pharmaceutical industry, which the EU is calling for in the negotiations. In this episode of Compass Global Economy To Go, we explain what is behind it.
What is the EU-Thailand Free Trade Agreement?
At the end of October, the tenth official round of negotiations on the free trade agreement between Thailand and the EU came to an end. The EU proposes additional intellectual property rights for medicines. Whether Thailand accepts these rules is still open. What is clear, however, is that: Trade agreements no longer only regulate tariffs. They also specify how states must protect intellectual property, i.e. patents and study data for drugs.
What does the coronavirus pandemic have to do with this?
In October 2020, India and South Africa called for the temporary suspension of certain intellectual property obligations for COVID-19 vaccines, drugs and tests. This proposal became known as the TRIPS waiver. Although more than 80 states, scientists and many civil society groups supported him, rich industrialized countries and pharmaceutical companies, including the Federal Government and the EU, took a stand. The pandemic exemplifies what happens when life-saving knowledge remains under the control of fewer companies.
What are TRIPS and TRIPS-Plus?
TRIPS is the World Trade Organization (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights. Among other things, it requires patents to be valid for at least 20 years from the date of application. The 2001 Doha Declaration reaffirmed the right of states to protect public health, including through compulsory licensing.
TRIPS Plus refers to rules that go beyond the TRIPS Agreement. They are not mandatory internationally, but are regularly enforced by strong negotiating partners such as the EU or the US against weaker partners in trade agreements. These include:
- Market exclusivity: prevents the sale of certain successor preparations during a term of protection.
- Supplementary protection certificates: extend the protection of patented medicinal products beyond the normal patent term.
- Data exclusivity: Regulatory authorities may not allow generics for a period of time based on the original manufacturer's study data, even if the patent has already expired.
What are the consequences of TRIPS Plus rules for patients?
For sick people, this means: You will have to wait longer for cheaper generics. Access to these drugs is often a matter of life and death. For public health systems with limited resources, a prolonged period of high drug prices means that less money remains for other treatments. The Thai network of people with HIV and AIDS therefore explicitly warns against additional exclusive rights.
In addition: Trade agreements create long-term obligations under international law. If Thailand accepts the additional protection rules, it cannot abolish them without further ado. This limits the political scope to improve access to medicines in the future.
What would be a fair trade policy?
Medical innovation is important, and companies need incentives to develop new treatments. But the societal benefits of innovation depend on whether people have access to medicines. A fair trade policy must take into account both: the development of new medicines and access to affordable treatments. Trade agreements must be measured by whether they improve people's lives.
Frequently asked questions
What is the TRIPS waiver?
A 2020 proposal by India and South Africa to temporarily suspend certain intellectual property protection obligations for COVID-19 vaccines, drugs and tests to facilitate production and reduce costs.
What is the difference between TRIPS and TRIPS-Plus?
TRIPS is the binding WTO agreement for the protection of intellectual property. TRIPS-Plus are stricter rules that go beyond and are mostly enforced through bilateral trade agreements.
What is data exclusivity?
A period during which regulatory authorities may not authorise generic medicinal products on the basis of the original manufacturer's study data. It can block the market entry of cheap drugs even after the expiry of a patent.
Is the EU obliged to demand these rights?
No. The EU is not obliged to demand additional intellectual property rights, but it does so in the negotiations with Thailand.
More about the topic
- Guide to the EU-Indonesia Trade Agreement (CEPA))
- Global economy compass #78 – Free trade for whom? Why the Global South Criticizes European Trade Agreements
