PAF - ProActive File
Regular News Update From Eurostep

No. 231       Friday, 8 June 2001

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1.      COMMISSION AND MEPS MAINTAIN PRESSURE ON PHARMACEUTICAL INDUSTRY FOR A GLOBAL STRATEGY IN FAVOUR OF ACCESS TO MEDECINES IN POOR COUNTRIES

During a meeting on the 29th of May between Commissioners Paoul Nielson, Pascal Lamy and representatives from six pharmaceutical laboratories (BMS, GSK, Merck, Roch, Novartis and Pfizer), the Commissioners confirmed the Union commitment to adopt, with the industry counteparts, a real common strategy in favour of access to medicines in the Least Developed Countries. In this context, Mr. Lamy underlined the need to clarify certain aspects of the TRIPS agreements on intellectual property, especially in connection with the obligatory licenses that allow for the local manufacturing of vital medicines.

On the 31st of May Commissioner Lamy once more called on the northern industries to make gestures in favour of the development of poor countries showing a certain irritation on the behaviour of the pharmaceutical industries which are not always easy to accept these initiatives.

Commissioner Lamy seems decided to maintain pressure and a new meeting will be held on the 11th of June, with the participation of the Presidents of Aventis and GlaxoSmithKline. This meeting will arise one week before the next TRIPS council at the WTO, on 18th of June.

By adopting an opinion from the Dutch Socialist Dorette Corbey, also the EP Industry Committee showed its impatience about the absence of a global strategy on the access to medicines. The document moves in favour of a reduction in the protection of the patents granted for a duration of twenty years and set within the TRIPS agreement for an average duration of ten years for a series of patented medecines, only in the field of transmissible diseases. Moreover it supports the position of the European Commission according to which the pharmaceutical industries must apply differentiated prices. It calls on the Commission to set rules governing the pricing policy of each medicine to be based on the production costs. However the EP Committee underlines that it is necessary to foresee the safeguard clauses so that the products sold at favourable prices in the poor countries are not resold in the rich ones. To do this, it proposes a separate packaging and a clear labelling of medicines aimed at LDC. The differentiated prices should be adopted before 2006 when the TRIPS agreement will enter into force in the LDC.

2.      MORE COMMENTS AND ACTIONS FOLLOWING THE EU DEVELOPMENT COUNCIL

This week the Council President Maj-Inger Klingvall gave some more comments on the conclusions of the Development Council of last week. She stressed that European Union is the leading aid donor in the world but it must improve its aid efficiency by targeting it more on eradicating poverty and simplifying decision-making procedures to implement the new Union development policy defined in November.

The Council President welcomed, as progress along the road to greater effectiveness in development cooperation, the guidelines to enhance coordination between the European Union and the United Nations, to strengthen the link between emergency aid, rehabilitation and long-term development, and to integrate the environment dimension in the development cooperation policy. Regarding the commitment taken by the Commission to present each year to the Council a report on the assessment of progress in the reform of aid management, a first report will be presented in November  as Commissioner Paoul Nielson has confirmed this week.

Moreover, following the Development Council’s conclusions on the UN idea to create a world fund for health and action against AIDS, a meeting between the donor community and the countries concerned was held during the Whitsun weekend to draw up the broad lines of the fund, the way it would be used and its financial mechanisms. Commissioner Paoul Nielson  specified that it will not be a fund for AIDS alone, but for the provision of medicines against AIDS, malaria and tubercolosis.

The Commissioner also answered questions on the state of progress of ratification of the Cotonou Agreement, another point discussed by the Council, stressing that he has invited the Member States to speed up the process. In his words ten Member States have given their assurance that ratification will be settled within one year.

3.      THE COMMISSION ASKED FOR PALESTINIAN JUDICIARY REFORM  IN RETURN FOR AID PACKAGE

At a meeting with the European Union President Romano Prodi and External Relations Commissioner Chris Patten, Arafat signed an agreement which will see the EU cover part of the gap in the Palestinian budget.

Under the deal the Palestinians have agreed to a strictly controlled austerity budget in return for direct aid which will help the Palestinian Authority to pay salaries and keep basic education and health services going. This aid will be released in stages over the next six months, subject to controls ordered by the I.M.F. to ensure it is being properly spent.

But the Commission exacted a tough price from Palestinian leader in return for the  EU aid of EUR 60 million. Arafat sealed the deal by promising to approve laws to enshrine the indipendence of the Palestinian Authority’s judiciary. The Commission believes he will now have to abolish the territories’ military courts, which have ordered the execution of five Palestinians accused of collaboration with Israel since January.

The breakthrough came during last week’s visit to Brussels by Arafat and his minister for International Cooperation.

4.      IN BRIEF

Human rights activists have claimed that EU’s Sweden Presidency has not taken action against a Scandinavian oil company accused of aiding Sudanese troops waging the country’s civil war. A coalition of 40 development and peace groups is urging a temporary EU ban on oil investments in the African state after the Kharthoum government admitted it was using revenue raised from oil exploration rights for military expenditure. The Swedish government defended its record, contending that is waiting for a full report on the war, to be then presented to the UN General Assembly, before deciding how it should address its concern over oil exploration.

The Commission has adopted a new extreme urgency procedure that will enable it to answer nearly immediately to emergence of new humanitarian disasters. Up to now, the Commission didn’t have a quick response capability. It was only capable to mobilise its aid, at best, within 15 days. In the framework of the provision adopted on the 6th of June, it will be able to take financing decision and to mobilise funds within 25 to 48 hours, for a maximum of € 3 million per crisis.

The new Italian government may change its position on the ratification of the Kyoto Protocol. In preparations for the Environment Council of Thursday 7 June, the Italian delegation submitted a "footnote" contradicting the EU position to ratify Kyoto even without US support. It also expressed its wish that the EU should discuss constructively possible new proposals from the US. However the Council confirmed the Union’s desire to ratify the Protocol in 2002 and its scepticism over the possibility of a compromise with the USA on this issue.


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Updated on 19 June 2001
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