In a major victory for developing countries ahead of next month's ministerial meeting in Cancun, the World Trade Organisation is expected to leave it to the trade-related intellectual property rights council to check the misuse of compulsory licensing provisions for poor countries facing epidemics, according to the agreement reached in Geneva.
Commerce ministry officials said according to information reaching Delhi, disputes between countries will not be referred to the Dispute Settlement Body of the WTO.
The United States had sought a dispute settlement mechanism and provisions to check diversion of medicines from importing countries. The successful resolution of the issue is also expected to help the US in garnering support from developing and least developed countries in pushing its case in other areas like agriculture.
Officials said according to the agreement, the importing country would be responsible for ensuring that there was no diversion. The deal was thrashed out in Geneva today between India, Brazil, Kenya and the US.
"The decision is in line with the WTO draft circulated in December 2002," said an official.
According to a declaration in Doha in November 2001, countries facing public health concerns but not having manufacturing capabilities could resort to compulsory licensing for meeting the demand for medicines.
The US had first demanded that the coverage be limited to certain diseases like AIDS and tuberculosis and countries like India and Brazil, which have manufacturing facilities, be excluded from the ambit of the decision. The December 2002 deadline for finalising the details of the package was missed due to resistance from the US.
"A statement will be made tonight in Geneva, but the US has reduced its resistance. Some measures are being put in place to check the diversion of medicines, but it is a victory for the developing countries, which have fought hard for the benefit that should have been made available long ago," said an official.
"Once we export goods to a country that has resorted to compulsory licensing, our responsibility ends," the official added.
The sources also said India or any other country did not provide an undertaking on misuse of the provisions saying it was the responsibility of the TRIPs council.