Indian drug makers having WHO GMP complied manufacturing facilities may soon find exports to Uruguay easier than ever. The central government is working out a MoU with its Uruguay counterpart to facilitate the same, it is learnt. The MoU would lead to Uruguay recognizing Indian WHO GMP as a required standard for domestic drug manufacturing units to export medicines to their country. Once the MOU is signed it would free Indian drug exporters from getting their manufacturing facilities approved by the drug regulatory authorities of Uruguay.

The approval of Indian WHO GMP by a Latin American country is also expected to lead to similar understandings with other LA countries, thus facilitating smoother inter-trade tie-ups in the region.

The recent government initiative was triggered off after a three-member delegation representing Uruguay Drug Regulatory Authority made a visit to India. The delegation met senior officials from the Ministries of Health, Chemicals and Commerce and Industry and also participated in an inter-ministerial meeting where the proposal for a MoU was mooted.

According to highly placed sources, the Union Ministry of Commerce has been given the responsibility to draft the MoU, which is under preparation. The government is also seeking "letters of intention" from at least 10 Indian pharma companies who would be interested in increasing their business presence in Uruguay in the wake of the MoU.

LAC region is one of the potential markets for Indian generics. The pharmaceutical exports to the region had shown a steady increase during the last one-decade. According to official figures, the exports to LAC market in 1997-98 were to the tune of Rs 256.1 crore. In 1998-99 it was Rs 330.6 crore while in 2000 it grew to Rs 388.7 crore.