India may move WTO to protest drug seizures

The government is planning to approach the dispute settlement body of the World Trade Organization against frequent seizure of Indian medicines at various European ports.

While the seizures were carried out on charges of alleged violation of intellectual property rights, India's attempt will be to prove that the consignments were not meant for European markets, but were on transit towards its final destinations in Africa and South America and hence involve no IPR violation.

The Union commerce ministry is in the process of gathering information on all such seizures, officials said.

According to the Pharmaceutical Export Promotion Council (Pharmexcil), at least five cases, involving leading drug makers like Dr Reddy's, Aurobindo, Ind-Swift and Cipla have been brought to the ministry's notice in the recent past.

While Dr Reddy's consignment, seized by Dutch customs, was on way to Brazil, Cipla's consignment, also confiscated in Amsterdam, was moving towards Peru.

The ministry's move comes in the backdrop of increased non-tariff barriers being faced by the domestic pharmaceuticals industry in its pursuit to go global.

For instance, the commerce ministry is engaged in talks with its Libyan counterpart to amend a notification issued by that country, barring medicine imports from all countries except the European Union members and North America.

Officials said an Indian delegation would reach Libya to ensure that domestic drug manufacturers were able to continue their presence in the Libyan market.

Similarly, the Department of Pharmaceuticals has started negotiations with Nigerian drug regulators to ensure smooth flow of Indian low-cost medicines to that country. Indian drug exports to Nigeria, the ninth biggest destination for Indian medicines, had recently come under cloud after Nigerian authorities seized fake medicines that were marketed under "made in India" labels in that country.

The department's attempt is to collaborate with the Nigerian government to set up a drug testing (bio-equivalance centre that proves the safety and efficacy of a generic medicine) centre in that country.

Talks are on with a visiting Nigerian delegation to collaborate on mutual intelligence sharing and mutual reward system to seize counterfeit drugs that spoils the brand equity of Indian medicines.

During 2008-09, Indian pharma exports were Rs 38,433 crore (Rs 384.33 billion), an increase of 24.94 per cent compared with Rs 30,760 crore (Rs 307.6 billion) for 2007-08.