PANITCHPAKDI... the final piece of the jigsaw has fallen into place

GENEVA, Switzerland (AFP) -- The World Trade Organisation (WTO) yesterday clinched a deal to allow poor countries better access to cheaper medicines for fighting deadly scourges such as AIDS, malaria and tuberculosis.

"It's good news for Africa, and especially good news for the people of Africa who so desperately need access to affordable medicine," Kenya's ambassador, Amina Chawahir Mohamed, told reporters.

Ending days of wrangling, WTO countries achieved the breakthrough following an impassioned plea by African countries late Friday for members to set aside reservations based on national interests.

ZOELLICK... the agreement had struck the right balance

More than 2.1 million Africans have died from diseases such as AIDS since December 16 when a near deal first collapsed, Morocco's ambassador told the meeting on behalf of African countries.

Envoys of the 146-strong body had struggled to break the deadlock since last December when the United States, under pressure from its pharmaceutical industry, blocked an accord over concerns it could undermine patent protection.

African countries had shown "passion and patience" over trying to settle the problem, Canada's ambassador to the WTO, Sergio Marchi, said, adding: "They helped the WTO find its heart and soul."

Brazilian ambassador, Luiz Felipe de Seixas Correa, said that the African calls for a solution had been a decisive factor.

SAO PAULO, Brazil -- Sebastiana Ferreira, 36 (left), an HIV positive single mother, watches television Friday with other patients at a clinic where she's lived for the past two years in Sao Paulo. Yesterday, the World Trade Organisation sealed a deal that will allow people like Ferreira in countries too poor to have their own pharmaceutical industries gain access to essential drugs far more cheaply. (Photo: AP)

"I think all of us could not fail to be touched by that."

Despite an apparent near-accord earlier in the week, the proposed compromise ran into snags over questions of its interpretation when it faced final endorsement in the early hours of Friday.

But the WTO's ruling general council met early yesterday following consultations led by South Africa, India and Kenya to try to iron out lingering concerns.

"We believe that the mechanism will work, it can work and we intend to use it," said Faizel Ismail, South Africa's representative at the negotiations, to reporters.

The agreement will make it easier for poor countries to import cheaper generic copies of patented medicines under a so-called compulsory licensing system if they do not have the capacity to manufacture the drugs themselves.

Before now, under the WTO's Trade-related Aspects of Intellectual Property Rights (TRIPS) agreement, production of a medicine under a compulsory licence had to be predominantly for the domestic market, effectively limiting the ability of countries without a pharmaceutical industry to import generics.

Hailing the deal as "historic", WTO Director-General Supachai Panitchpakdi said: "The final piece of the jigsaw has fallen into place, allowing poorer countries to make full use of the flexibilities in the WTO's intellectual property rules in order to deal with the diseases that ravage their people."

But aid agencies were not convinced.

Oxfam and Medecins Sans Frontieres (MSF) said in a joint statement that the deal was "flawed" and "does not offer a workable solution".

"Today's deal was designed to offer comfort to the US and the Western pharmaceutical industry," said Ellen T' Hoen of MSF.

"Unfortunately, it offers little comfort for poor patients. Global patent rules will continue to drive up the price of medicines."

Access to generic versions of antiretroviral AIDS drugs is a life-or-death issue for the estimated 30 million Africans suffering from the disease, according to UN figures -- out of a total 42 million worldwide.

The clash between business and humanitarian interests has plagued global trade talks since the latest three-year round to tear down trade barriers was launched by ministers in Doha, Qatar, in November 2001.

The deal eases the way for a WTO conference beginning September 10 in Mexico where ministers will try to revive trade negotiations due to lead to a new accord by end of 2004.

US Trade Representative Robert Zoellick said in a written statement that the agreement had struck the "right balance" on a "top concern" in the WTO in recent years.

"The United States government appreciates the co-operative leadership of the executives of the pharmaceutical companies who are committed to developing the medicines of the future while helping those most in need today."

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