India, EU ready for consultation to resolve drug seizure issue.

In the coming week, India and the European Union will commence their World Trade Organisation-mandated consultations to amicably resolve a dispute over the seizure of consignments of Indian medicines in Europe.

In this regard, a delegation led by European Commission's Director General for Trade, Mr David O'Sullivan, will visit India to begin the process of consultation.

This follows India's complaint against the seizure of Indian generic (off-patent) drugs by European authorities.

The seizure of several consignments of medicines was on the patent infringement grounds.

The medicines were meant for Latin American and African markets. There is also a complaint by Brazil against the EU on the issue.

“Next week, Mr O'Sullivan will be here. India is going through a consultation process. What will happen thereafter, I reserve my rights,” Commerce Secretary, Dr Rahul Khullar, told reporters. According to the WTO dispute settlement rules, the parties concerned need to try and amicable resolve the issues within 60 days by entering into a mutual consultation process.

If it fails, then the matter will be referred to the WTO Dispute Settlement Panel.

“I have no desire to enter into a trade dispute if the issue I have can be satisfactorily resolved. But I will not prejudice my position as to what I will or will not do irrespective of how they (EU) respond,” Dr Khullar said. He said trade disputes can be messy, protracted and could lead to political ill will, adding that, therefore, India wants to resolve the drug seizure issue soon.

India maintains that the generic drugs were compliant with international treaties and have helped in reducing the cost of life saving medicines.

India's pharma sector is worth around $12-billion.

It receives 40 per cent of its revenue from generic drugs exports.

Source : Business Line