Kathmandu, August 4

After the Cabinet approved the proposal of protocol to amend the Trade Related Aspects of Intellectual Property Rights (TRIPs) — an international agreement administered by the World Trade Organisation (WTO) — the Ministry of Commerce and Supplies (MoCS) is preparing to table the amended protocol in the parliament to support the TRIPs protocol amendment which ensures the export of medicines.

Currently, Clause 31 (F) of the TRIPs agreement bars the country from exporting drugs that are produced under compulsory licensing.

The provision of compulsory licensing deals with extending licence to the commercial pharmaceutical manufacturers if the patent holder fails to produce drugs at a commercial scale.

However, the provision of Trade Related Aspects of Intellectual Property Rights restricts export of such drugs produced under compulsory licensing which has been hindering the developing and least developed countries (LDCs) from importing cheaper medicines. “Nepal as an LDC would also benefit from this protocol amendment,” said Naindra Upadhyay, secretary at Ministry of Commerce and Supplies.

The protocol amendment was initially proposed by a group of developing countries led by India and Brazil citing the difficulties for developing countries and LDCs that relied on cheap imported medicines and now 80 countries stand in favour of the protocol amendment.

“This will be amended when a two-third majority stands in favour of amendment,” according to Secretary Upadhyay. Currently, there are 161 members in WTO.

The World Trade Organisation General Council adopted the Protocol Amending the TRIPS Agreement and opened it for acceptance by WTO members on December 6, 2005.