Bangladesh has started lobbying the World Trade Organisation (WTO) to extend the special transition period of the TRIPS agreement on humanitarian grounds so that the country could continue to make cheaper drugs available to poorer sections of people.
Trade officials from Bangladesh in Geneva, along with other least-developed countries (LDCs), have already made a plea with the WTO high-ups for allowing them to produce patented drugs until 2026 to help poor people with affordable treatment options, official sources said.
The ministry of commerce (MoC) has prepared a position paper, after consultation with stakeholders, which was recently sent to Geneva for further negotiation.
Commerce secretary Hedayetullah Al Mamoon acknowledged having sent a preliminary position paper to Geneva and said an updated version will be sent in a day or two.
"Yes, our approach is for extension of the period on humanitarian grounds. Unless production of patented drugs is allowed, poor people will fail to afford treatment and drugs," he said.
The waiver of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement for LDCs is set to go by December 2015, leaving these countries open to competition on the global medicine market.
Under this waiver of the terms of the agreement, the LDCs were allowed to manufacture patented drugs without paying royalties to rich countries holding the patent rights.
Officials said if the period is not extended by the WTO, the LDCs will have to pay high royalties to the countries concerned which secured the patent rights on those pharmaceutical products.
They said while lobbying for the extension, Bangladesh officials are highlighting issues that include poverty, saying that Bangladesh is one of the world's most densely populated nations with 166 million people with nearly 26 per cent living below the poverty line.
The position paper, prepared by MoC, quoted an estimation which showed that per-capita spending on health is currently about US$17 per year, 30 per cent of which is contributed by the public sector, about 6 per cent by the civil society, and the remaining 64 per cent is 'out-of-pocket expenditures'.
In Bangladesh direct household expenditure on purchasing drugs from pharmacies amounts to $4.0 per head on average, far outstripping public expenditure of less than $1.0 per head on drugs.
"Government health insurance and other similar healthcare support systems are not available for the poor people of Bangladesh."
The position paper says Bangladeshi people are hugely benefited by TRIPS Agreement which made medicines accessible and affordable. "Bangladesh is probably the cheapest source of medicines in the world."
It said: "Under patent protection medicine will be too expensive for poor people to afford. Prices of essential vaccines for some serious diseases like AIDS, tuberculosis, polio, measles, diphtheria, and tetanus will be increased. This will bring devastating consequences for the healthcare system of Bangladesh."
Furthermore, Bangladesh has yet to develop the infrastructure necessary to implement patent protection of pharmaceuticals.
"In Bangladesh Malaria and Tuberculosis are still very much prevalent. Still the population of Bangladesh is at great risk of epidemic from these diseases," Dhaka pointed out in seeking extension of the exemption period.
While negotiating on TRIPS extension, Bangladesh will also raise the issue of impacts of climate change.
"Global warming will increase respiratory and cardiovascular diseases that will increase the sufferings and overall health expenditure of people in Bangladesh. Vector-borne diseases like malaria and dengue and water-borne diseases caused by giardia, salmonella and cryptosporidium could become more prevalent in Asian countries, including Bangladesh, because of global warming," the paper noted.
"Bangladesh will be a victim of global activities that affect climate. Implementation of TRIPS in Bangladesh from 2016 will add further burden to the sufferings of poor people of Bangladesh."
To further press the demand for extension of the transition period, the negotiators will also raise the issue of Bangladesh's capability to manufacture affordable medicines which is helping poor people of other LDCs as well.
Officials said under the TRIPS agreement multinational companies were supposed to offer special facility in technology transfer to LDCs. But they did not come forward with the assistance, thus none of the LDCs except Bangladesh did achieve capacity in drug production. Of the LDCs, some 22 even cannot produce drugs like paracetamol.
The Bangladesh position paper also noted that LDC members of the WTO continue to face massive health challenges from communicable and non-communicable diseases.
"In addition to the socioeconomic and financial constraints, LDCs also lack adequate technological base and local pharmaceutical manufacturing capacity. These special needs and circumstances of LDCs, and the vulnerability of LDCs confirm the need for a renewed transition period for as long as these constraints remain."
Calling for extension of the transition period it also said pharmaceutical companies in LDCs are no way a threat to the multinational companies. "No patent infringement occurred in LDCs who are producing medicines mostly for domestic consumption and within the LDCs."
Secretary-General of Bangladesh Association of Pharmaceutical Industries (BAPI) Abdul Muktadir Chowdhury told the FE Wednesday Bangladesh's pharmaceutical sector is still not ready to compete if the patent waiver goes in 2016.
"We need four to five years more to build the industrial base and obtain capacity to continue producing low-cost medicine without help from rich nations," he said.
Mr Chowdhury noted that many big companies have come forward with large investments in Bangladesh's pharmaceutical industry in the recent years.
Also, local drug companies will be able to produce necessary raw materials after the Active Pharmaceutical Ingredients (API) Park is built.
"We will be able to export drugs to entire world after gaining capacity to produce raw materials ourselves," the industry leader added.
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