Full text PDF - International Policy Network

Counterfeit medicines in LDCs: problems and solutions 213not brought in the WTO, the negative PR given to it created a persistentfear of the possible fall-out from bringing such a WTOdispute.Bilateral trade agreementsAn alternative way of persuading LDCs to institute intellectualproperty regimes is through tempting them with bilateral andregional free trade agreements (FTAs). Most FTAs involving theUnited States contain provisions that require signatory countries tobolster their intellectual property regimes. By promising access tolarge and lucrative markets, these agreements can be a way of persuadingLDCs to respect the fundamentals of intellectual propertyprotection, which is a vital step for curtailing counterfeiting.Although these agreements are not as beneficial as unconditionalfree trade, they are a step in the right direction, freeing up trade andthereby improving economic well-being. However, they do raisecomplications in the form of ‘rules of origin’ issues, which are costlyto monitor and administer. Furthermore, an overly-complex ‘rules oforigin’ system may lead to the development of illicit trade routeswhich could be exploited by traders in illegitimate goods such ascounterfeit medicines.ConclusionThe counterfeiting of drugs is a global problem which will not beeliminated until the supply-side issues are addressed. The majorityof counterfeit drugs are manufactured in LDCs, so reform in thesecountries is absolutely vital if progress is to be made. The mostpressing area for reform in the majority of LDCs is the application ofthe rule of law, the definition and enforceability of property rightsand the enforceability of contracts. Without such reforms, counterfeiterswill continue to kill hundreds of thousands of people everyyear.