The Doha Declaration reaffirmed countries’ right to use TRIPS safeguards such as compulsory licences.  But the TRIPS Agreement limits the use of compulsory licences, saying they must be “predominantly for the domestic market”.  This poses huge problems for countries that have little or no drug manufacturing capacity.  Countries may be able to issue a compulsory licence to make their own generic versions of patented drugs – but how can a country with no drug industry do that?

In 2003, the World Trade Organization attempted to solve the problem by establishing, in what is known as the August 30th Decision, the rules that govern the exportation of a drug under compulsory licence.  It is a complex and cumbersome mechanism, and nearly five years on, not a single pill has been exported under it.

Testing the law in Canada
Canada was one of the first places to amend its national laws to implement the Decision.  Médecins Sans Frontières decided it would test the Canadian law, and put considerable energy and resources into getting an essential AIDS treatment – patented in Canada - exported to a country that had no drug industry of its own.  It proved impossible. Canada is now reviewing its legislation in an attempt to make it more efficient.

Our experience shows that the problem of exporting generic versions of patented drugs under a compulsory licence is far from solved.  

Read MSF's 2006 report: The WTO August 30th Decision Is Unworkable

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