BD to seek help of other LDCs for extension of TRIPS waiver

Bangladesh has decided to persuade other least developed countries (LDCs) to join its efforts for extension of the special transition period of TRIPS agreement so that production of patented drugs at low cost can be continued, sources said.
The Ministry of Commerce (MoC) will soon send a position paper to the country's Geneva mission so that it can initiate talks with the fellow LDCs to place the demand with the WTO for the extension of the waiver.
The waiver of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement for the LDCs is set to expire by December 2015 under which the poor countries were allowed to produce patented pharmaceuticals without paying royalties to rich countries.
Officials said if the period is not extended by the WTO, the LDCs will have to pay high royalties to the countries concerned which have secured the patent rights of those pharmaceutical products.  
The MoC recently convened a meeting to discuss the possible steps on how to get the period extended so that the poor people can get medicine at an affordable cost.
Referring to a study, Nazmul Hassan, MP, Advisor to the Bangladesh Association of Pharmaceutical Industries (BAPI), said in India the production cost of a particular medicine will go up by US$240 million once the waiver goes.
He said poor people of the LDCs would not be able to bear the high cost of drugs if payment of royalties becomes mandatory.
The meeting was told that the health budget of the LDCs is very small. Thus they are unable to import patented drugs. Apart from Bangladesh, the other LDCs cannot produce necessary drugs for their people.
Director-General of the WTO Cell under the MoC Amitava Chakrabarty in the meeting said once the TRIPS agreement is fully implemented, these LDCs will have no option but to import high-cost drugs from abroad to meet local demand.
He said further extension of waiver period is necessary so that poor people of the LDCs can get drugs for diseases like HIV/AIDS, malaria, and tuberculosis at affordable costs.
Mr Chakrabarty said most of the Bangladeshi pharmaceutical companies are unable to produce necessary raw materials to manufacture drugs. The active pharmaceutical ingredients (API) park in Bausia under Munshiganj district may go into operation for producing raw materials in 2016.

He also said in Bangladesh, the epidemic of malaria and tuberculosis still exists and due to the impact of climate change, there is a high possibility of outbreak of various diseases of  cardiovascular and respiratory system.
 "So the extension of the TRIPS transition period to get drugs at low cost is very much necessary for the sake of poor consumers," he said.
According to drug administration officials in Bangladesh, only 15 companies can produce raw materials of 43 medicines. So, the pharmaceutical industry needs to import nearly 97 per cent of raw materials.
They said Bangladesh lags behind in research and development for producing new molecule. Thus no capacity has been developed for the same.
Officials said under the TRIPS agreement, multinational companies were supposed to offer special facility in technology transfer to the LDCs. But they did not come forward with assistance. Thus none of the LDCs except Bangladesh achieved capacity in drug production. Of the LDCs, some 22 countries cannot even produce drugs like paracetamol.
Former president of the Bangladesh Association of Pharmaceutical Industries (BAPI) Md Shafiuzzaman told the FE Bangladesh needed to jointly work with other LDC members to mount pressure on the WTO for the extension.
He underscored the need for quick steps to get the extension as the deadline is knocking the door.