A coalition of over 75 civil society groups in the country, under the banner of Forum Against Free Trade Agreements (FTAs) in India, has called upon prime minister Dr Manmohan Singh to review its forthcoming economic engagements with the USA, and to reject pressure from the US government and business lobby groups on India’s economic policies, including its recent decision to allow compulsory licensing for life-saving drugs.
In an open letter to the prime minister, against the backdrop of the US-India Business Council (USIBC) Leadership Summit held in Washington on July 11, 2013, the Forum demanded that the government should not jeopardise its capacity to generate employment through domestic manufacturing, provide affordable medicines to millions and revive the rural economy.
The civil society groups's response in this regard comes in the backdrop of the fact that some of India’s key policy decisions to fulfill its developmental priorities such as compulsory licensing for life-saving drugs are being opposed by the US business groups.
US business’ attempts to force India to change its policies on intellectual property rights (IPR) are a threat to the availability of affordable high-quality medicines for poor patients in India and other developing and least developed countries. This is even more surprising given the US administration itself has proposed steps to limit so-called ‘evergreening’– abusive practices used to extend intellectual property monopolies and keeping prices high for as long as possible. Under India’s World Trade Organisation (WTO) TRIPS' commitment India has the right to use legal tools available in TRIPS flexibilities. Compulsory licenses (CLs) are such legally recognised means to overcome barriers in accessing affordable medicines under international trade rules, the Forum in its letter said.
The NGOs in its open letter said that through CLs India could allow generic production of medicine ‘sorafenib tosylate’ to treat kidney and liver cancer patients at the cost of Rs. 8,800 per month (approximately US$175), while the same patented medicine produced by German company Bayer at the cost of Rs. 2,80,000 per month (approximately US$5,500).
India is also well within its legal rights to set a higher patentability threshold to limit the practice of ‘evergreening’. Recently, the Supreme Court of India upheld the decision to reject patent application of Novartis. India is completely within its obligation under the TRIPS Agreement to curb the multiple patenting of known substance. The current US stance tramples upon the privilege of the Indian government, judiciary and legislature, the civil society groups in the letter said.