What can Member States do to counteract the impact of TRIPS on drug prices?
Several measures may be used to secure public interest in relation to WTO/TRIPS Agreement. These include: A. parallel imports, B. compulsory licensing, and C. early submission of application for registration of patented drugs by generic manufacturers. A. Parallel imports If a manufacturer has patented a product in several countries, he may – for a number of reasons – decide to sell it at a different price in different countries. If the price in country A is substantially lower than that in country B, an importer in country B may buy the product at the cheaper price in country A, and sell it in country B at a price which is lower than the price set by the patent holder. This is called “parallel importation”. The TRIPS Agreement allows for such importation of products patented in countries other than the country of origin or the country to which the drug is imported. This mechanism may be used if the price of the product is cheaper in other countries than on the local market. The TRIPS A
