US urges transparency in drugs law

Price checks on new product bids axed

Washington harbours concerns despite the removal of a clause in a bill banning the registration of foreign-made drugs if they are too expensive, according to the Intellectual Property Department (IPD).

The bill to amend the Drugs Act, sponsored by the Food and Drug Administration, initially included a clause requiring foreign drug manufacturers to submit a breakdown of the basic costs of producing drugs which they seek to register in Thailand.

If the prices of the drugs are set too high, the manufacturers would not be able to register them, IPD chief Thospone Dansupatra said.

However, the proposal has drawn concerns from the United States which suggested the Public Health Ministry, which supervises the FDA, listen to the views of stakeholders first. The bill is due to be tabled before cabinet soon.

The US’s concern was conveyed during a video conference late last month between the IPD and Daniel Lee, deputy assistant of the US Trade Representative for Innovation and Intellectual Property.

The US side was also represented by the Patent and Trademark Office, the Department of Commerce Copyright Office and the State Department.

Mr Thospone said yesterday the clause has now been deleted from the bill, although the US remains worried. Washington says the legislative amendment must proceed with transparency.

The US also asked the government to roll out more substantive measures to suppress producers of pirated goods.

In a decision reached by the International Economic Policy Committee, chaired by Prime Minister Prayut Chano-cha, the National Council for Peace and Order will lead efforts to combat pirated goods with a result expected in three months. Targeted locations for suppression in Bangkok, where pirated products and merchandise are commonly sold, are Maboonkrong shopping centre, Pantip Plaza, Klong Thom, Ban Mor and the Chatuchak weekend market. Outside Bangkok, crackdowns have been launched in the Rong Klua market on the border with Cambodia.

According to Mr Thospone, sales at the Rong Klua market were dealt a heavy blow following the crackdowns, which forced the closures of many shops selling fake brand-name bags and shoes.

Also, shops selling counterfeit goods could be caught by the anti-money laundering l aw, which empowers authorities to freeze assets suspected to be funded with ill-gotten gains.

The IPD chief said a recent amendment of the Computer Crime Act has been helpful in prosecuting people who trade pirated goods on the internet.

The video conference late last month took place after Thailand and the US held a meeting of the Trade and Investment Framework Agreement Joint Committee in early April.

Thailand is among 16 countries being watched by Washington which have trade deficits with the country.

A trade retaliation measure may be in store, according to a source.

Last year, Thailand exported US$24.4 billion worth of goods to the US, up 1.8% from the previous year. In January, the US ran a trade deficit of US$1.5 billion with Thailand, up 6.5% from the same period last year.

Thailand exports mostly electronic equipment, rubber tyres and radio transmission devices to the US.

Most US imports to Thailand include raw materials for producation of electronic equipment.

The US-based International Intellectual Property Alliance says Thailand has inadequate measures to protect intellectual products while the Pharmaceutical Research and Manufacturers of America says the government has a transparency problem with its procurement system and with setting the median prices for drugs.