WTO member governments broke their deadlock over intellectual property protection and public health on August 30, 2003. They agreed on legal changes that will make it easier for poorer countries to import cheaper generics made under compulsory licensing if they are unable to manufacture the medicines themselves.

The decision waives countries’ obligations under a provision of the WTO’s intellectual property agreement. Article 31(f) of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement says that production under compulsory licensing must be predominantly for the domestic market. This effectively limited the ability of countries that cannot make pharmaceutical products from importing cheaper generics from countries where pharmaceuticals are patented.

In the decision, WTO member governments have agreed that the waiver will last until the article is amended.

The decision settles the one remaining piece of unfinished business on intellectual property and health that was left over from the WTO Ministerial Conference in Doha in November 2001.

“This is a historic agreement for the WTO,” said Director-General Supachai Panitchpakdi. “The final piece of the jigsaw has fallen into place, allowing poorer countries to make full use of the flexibilities in the WTO’s intellectual property rules in order to deal with the diseases that ravage their people.

“It proves once and for all that the organization can handle humanitarian as well as trade concerns,” he went on. “This particular question has been specially difficult. The fact that WTO members have managed to find a compromise in such a complex issue bears testimony to their goodwill. “It also gives WTO members a good momentum to take to the Ministerial Conference in Cancún. I sincerely hope ministers can work together to reach agreement on the other outstanding issues that they will deal with in Cancún,” he said.