WTO drugs battle settlement

Patented drugs are more expensive but millions go into their development

DOHA, Qatar -- Agreement has been reached between rich and poor countries over the use of cheap alternatives to expensive patented drugs.

Before making the deal public, delegates at the World Trade Organization meeting in Doha are finalising the detail of the agreement on patented drugs vs alternatives, known as generics.

But other differences over issues such as agricultural subsidies are proving difficult to resolve -- threatening to block an overall deal on new talks for opening up global trade.

The drugs issue was one of the most contentious on the Doha agenda.

Rich nations wanted to protect multi-million dollar patents for health companies that develop new drugs to fight killer diseases such as AIDS.

IN-DEPTH World Trade Organization in Doha

Those worse off said they cannot afford the drugs and their nationals are dying as a result so they should be allowed to make or buy cheap alternatives known as generics.

Resolving the issue of patent rules -- known as Trade-Related Aspects of Intellectual Property Rights, or TRIPS in WTO jargon -- has been considered essential to correcting the image that freer trade favours the rich over the poor.

The U.S. delegation said the final text should be considered a political statement rather than a legally enforceable document.

Brazil and India lead the developing countries in the battle for the right to make or import generic drugs.

They were looking for a waiver -- on public health grounds -- of rules that guarantee 20-year patents on medicines. Without the waiver allowing them to use generics they fear legal action from either the drugs companies or the WTO.

They say they cannot afford the expensive patented drugs to treat millions of their nationals with diseases such as malaria and AIDS.

The U.S. headed the industrialised nations' fight against a blanket waiver. They say it could threaten the $300 billion a year drugs industry.

The deal is believed to give developing nations more flexibility in over-riding patent rules on public health grounds.

Meanwhile plans to phase out farm export subsidies has again met with stiff resistance from the European Union.

The topic was also one of the most difficult topics in Seattle 1999 which failed to agree the road map for a new round of trade talks among the 142 WTO members.

This time South Korea, Japan and Norway have agreed to a proposed text calling for the eventual "phasing out" of farm export subsidies.

That leaves the EU, and especially France where there is a strong farming lobby, largely isolated from the other agricultural powers.