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[Thai Economics Library | Archives| Currency Crisis 2007| Entrepreneurs]
January 31, 2008

US pharmaceutical lobby threatens to hit Thailand

By Jon Fernquest



American drug companies are pressing the US government for economic sanctions against Thailand according to a front page article in the business section of today's Bangkok Post:

...the Pharmaceutical Research and Manufacturers of America (PhRMA) which met last week in Singapore, had threatened to press Washington for tougher action against Thailand.

...the threat came amid a recent report that the outgoing military-appointed government would proceed with the implementation of more compulsory licensing (CL) for cancer drugs."

Whether Thailand has a legal right under WTO TRIPS provisions to issue compulsory licenses on life saving cancer pharmaceuticals, is apparently a besides the point.

Unilateral US trade policy is apparently a law unto itself.

Isn't resolving issues like this the job of the WTO?

Puangrat Asavapisit, director-general of the Thai government's Intellectual Property Department, issued a warning yesterday:

"We hope that the new government handles this issue carefully, as PhRMA is the most influential organisation in US politics, and on top of that the US economy is now in poor condition"

What form would these sanctions against Thailand take?

"The action would involve the United States Trade Representative (USTR) downgrading Thailand from the current Priority Watch List (PWL).

Priority Foreign Country (PFC) is the last and most severe US copyright protection category and subject to trade sanctions.

The USTR reviews the status of IP protection for its trading partners every year and classifies problem countries in four categories: Monitoring, Watch, Priority Watch and Priority Foreign Country.

US authorities were not available for comment on the report.

However, Mrs Puangrat said she was afraid that the USTR would pressure the US Congress over the next six months to eliminate trade preferences that currently allow some Thai imports duty-free access to the US.

...From 1991-93, Thailand was on the PFC as it had yet to implement its own intellectual property protection law. However, during that period, Thailand did not face US trade sanctions, as the two countries were engaged in the negotiations for a World Trade Organisation agreement. "

Read past Bangkok Post articles on compulsory licensing and the pharmaceutical industry in Thailand.

(Source: Bangkok Post, business, 31-01-08, temp-link)


Vocabulary:

lobby, lobbyist - consultants hired to influence government decisions in the US

X pressing Y to do Z - X tries hard to make Y do Z

sanctions - punishments, actions taken by one country against another country, when it believes international law has been broken

economic sanctions - "A way of punishing errant countries, which is currently more acceptable than bombing or invading them. One or more restrictions are imposed on international trade with the targeted country in order to persuade the target government to change a policy." (See The Economist Glossary and Wikipedia on economic sanctions)

trade sanctions - penalties used by one country to get another country to do what it wants in a trade dispute or disagreement (See Wikipedia on trade sanctions)

Pharmaceutical Research and Manufacturers of America (PhRMA) - an industry trade group representing the pharmaceutical research and biotechnology companies in the United States, one of the largest and most influential lobbying organizations in Washington, D.C. (See Wikipedia on PhRMA)

compulsory licensing (CL) - when a government forces the holder of a patent, copyright, or other exclusive right to grant use to the state or others (See Wikipedia)

WTO TRIPS - "Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) is an international agreement administered by the World Trade Organization (WTO) that sets down minimum standards for many forms of intellectual property (IP) regulation. It was negotiated at the end of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) in 1994" (See Wikipedia)

provisions - an arrangement included in a law or an agreement

besides the point - not relevant, does not address the issue

unilateral - action taken by one country without considering what other countries think or want

a law unto itself - makes its own laws (ignores laws it doesn't like)

influential - having the power to make people do what you want

United States Trade Representative (USTR) - the US government agency responsible for international trade policy (See Wikipedia)

downgrading - giving a lower status to someone as punishment to hurt them

Priority Watch List (PWL) - a trading status with the US, that functions as a warning that the country should change its policy

Priority Foreign Country (PFC) - a trading status with the US, which can be accompanied with sancstions

trade preferences - laws in country that favour the importation of goods from certain countries

import duties - taxes that have to be paid on goods imported into a country

duty-free access - exports can enter the country without paying import duties

implement - executing a plan, doing what a plan calls for

engaged in X - currently doing activity X


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