Indonesian Political, Business & Finance News

Government urged to delay TRIPs agreement

| Source: JP

Government urged to delay TRIPs agreement

JAKARTA (JP): The Indonesian Consumer Foundation (YLKI) urged
the government on Monday to postpone realization of its
commitment to the Uruguay Round trade liberalization agreement on
trade-related aspects of intellectual property rights (TRIPs).

Indah Suksmaningsih, the foundation's chairwoman, said
Indonesia should review and renegotiate its position at the
upcoming multilateral trade talks in Seattle, United States, and
ask the World Trade Organization (WTO) to postpone TRIPs
implementation in the country.

"Other developing countries, namely Thailand and the
Philippines, have postponed their TRIPs commitment to the year
2005. These countries are more developed than Indonesia, so why
don't we ask for a similar postponement until our industries are
ready?," she said.

She said the foundation submitted on Sept. 24 its
recommendation to government representatives.

TRIPs cover trademarks, copyrights, patents, geographical
indications, industrial designs, layout of integrated circuits
and trade secrets.

The agreement, set to come into force next year, allows WTO
members to patent a product and its process to prevent
individuals and companies from making, using, offering for sale,
selling or even importing a product without the owner's consent.
Patents will be effective for 20 years, and the manufacture will
stipulate the product's price.

Indah said TRIPs in pharmaceuticals, which are dominated by
developed countries, would lead to inflated prices of medicines
in developing countries. She said industries in such countries
would no longer be able to copy and produce drugs locally without
paying patent fees.

"This would severely hurt Indonesian consumers, as they have
to pay higher prices for drugs," she said.

Indah said the WTO must consider the impact of the agreement
on drug prices, especially in poor countries, because commercial
interests should not dictate public health issues.

She said the TRIPs agreement would not protect traditional
resource rights in the production of indigenous medicinal herbs
from piracy by foreign multinational drug companies.

The foundation, together with Federation Consumer
International which groups 247 organizations in 110 countries,
also called for an assessment of the social impact of trade
liberalization at the third ministerial meeting in November.

YLKI executive Tini Hadad said the WTO should set up a
mechanism to allow international non-governmental organizations
and consumers to take part in its trade policy-making. (01)

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