Indian drugs may get safe EU passage

NEW DELHI: Pharma exports from India are likely to be promised safe passage by the European Union after India took up the issue following seizure of two consignments while in transit through the region. The EU had taken the extreme step following complaints made by the patent holders of the medicines being shipped.

The EU is in talks with the Indian government on making changes in its Customs rules to ensure that such seizures, which are in violation of international intellectual property rules, do not happen in the future.

The Dutch government, which is taking a lead in this matter as the seizures happened at the Schipol airport in the Netherlands, has asked India about the possible directives to the Customs department to prevent such seizures, a senior commerce department official has said.

The move follows India���s threat to drag the EU to the WTO for violation of the Trips Agreement on intellectual property and divert its air cargo away from Schipol. Speaking to ET, the official said the EU had realised that the seizures were against the Trips Agreement as the consignment contained life-saving medicines and India had every right to sell it to a developing country.

���If we ask for establishment of a panel at the WTO, the EU could be in trouble. It is in their interest that they sort the issue out with us outside the WTO,��� the official said. The issue will also be discussed by EU trade commissioner Catherine Ashton and commerce & industry minister Anand Sharma during the India-EU
business summit in New Delhi on Friday.

���We told them that it was for them to decide. We simply want that such seizures should not happen in the future as it leads to loss of money, time, trust and business,��� the official said. India has informally communicated to the Netherlands that if the Customs regulations are not modified, it would start shipping its cargo through other countries.

The Dutch authorities confiscated anti-HIV drugs manufactured by Aurobindo Pharma on way to Nigeria at the Schipol airport in March this year and high blood pressure drugs manufactured by Dr Reddy���s Lab on way to Brazil in January and sent it back to India.

India���s exports of drugs, pharmaceuticals and fine chemicals for the year 2008-09 stood at Rs 39,538 crore, registering a growth of about 29% over the previous year.