Monday, November 29, 1999

Govt to approach WTO on EU drug seizure

News posted by www.newsinfoline.com

After clarifying miscommunications with their Brazilian counterparts, the commerce ministry is on the verge of filing a suit against the European Union for their seizure of generic pharmaceutical drugs headed for the South American nation. Following recent dialogue with Brasilia and after evaluating the EU's internal legislative initiatives for preventing customs from seizing drugs in transit, a ministry source told The Indian Express that taking legal action is now imminent.Although the EU and their Ambassador to India Danielle Smadja have declared that the European Commission is "contemplating clarification to make sure customs are clear so that what happened one-and-a-half years ago doesn't happen again," the ministry is not satisfied with the initiative and will be take their case to World Trade Organisation (WTO) court.The EU made two official statements about their intentions to revise its customs policy, which India "could not take seriously; it was as if they were obliging us," said the ministry source under a condition of anonymity. "They would be prepared to look at existing legislation which said that "if a product is transiting through an EU country, then the product would be considered as being manufactured in that country."Secondly, the EU said they were prepared to look at procedural timelines in conformity with TRIPS (Trade-related aspects of Intellectual property rights). "We looked at it and decided this is not going to solve the problem," said the source. "Because the most important thing is that unless you clearly say that 'there will be no detention of product in-transit unless there i a complete documentary evidence to say that this product was intended for that market, respecting article five of GATT honouring free-transit of goods,' then removal of production fiction alone is not sufficient."Although no direct negotiations on this issue have occurred as part of the free trade pact between India and EU, the issue has been a cause contention as both sides are aware of the on-coming legal dispute.

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