Brussels, Dec. 10: The European Union and India resolved a dispute over generic drugs on Friday which should remove obstacles to Indian drugs manufacturers exporting products to the developing world, officials said.
The Indian commerce and industry minister, Mr Anand Sharma, told this correspondent that the EU’s trade chief, Mr Karel De Gucht, told Indian negotiators during an EU-India summit in Brussels that the issue had been resolved. Mr De Gucht confirmed the agreement.
India and Brazil brought a case to the WTO in 2009 saying the EU was wrongly stopping and inspecting shipments of generic drugs in transit.
“We are going to amend present regulation. Transports in transit will no longer be checked, except for counterfeiting,” Mr De Gucht said.
The agreement will benefit leading drugs makers such as Dr Reddy’s Laboratories Ltd, whose generic drugs — legal in India but not recognised in Europe — have been stopped en route to countries such as Brazil.
The UN, however warned that an EU-India trade deal could raise the price of Indian generic drugs that provide treatment for HIV and malaria in poor nations. Mr Sharma, claims that he will protect the India’s ability to produce and export pharmaceuticals and generics.