Important note: Information in this article was accurate in 2007. The state of the art may have changed since the publication date.
Bangkok Post - May 2, 2007
Woranuj Maneerungsee & Apiradee Treerutkuarkul
It is a downgrading from the "Watch List" which Thailand was previously on.
The downgrading, outlined in the USTR annual report on intellectual property protection, came as no surprise after the Public Health Ministry enforced compulsory licensing on imported drugs, drawing protests from US drug firms.
Abbot Laboratories was among firms which asked Washington to put pressure on Thailand for allegedly stealing their intellectual property.
But US ambassador to Thailand Ralph Boyce yesterday said the USTR decision did not only stem from compulsory licensing.
"True, compulsory licensing in Thailand is one of the concerns, but it is not the main reason for Thailand being placed on the Priority Watch List," he told a press conference.
Thailand's protection of copyrights and intellectual property has been seen to have weakened over the past year, but there were also other reasons for the downgrading, he said.
"The fact that Thailand is being placed on the Priority Watch List reflects US and international concerns toward Thailand's recent economic policies such as the Foreign Business Act amendment, the capital control measures and the Retail Act," Mr Boyce said.
The US last placed Thailand on its Priority Watch List from 1989 to 1992. It upgraded Thailand to the Watch List in 1993 because of improved measures to tackle intellectual property offenders.
According to the US International Intellectual Property Alliance, American businesses selling copyrighted products and services lost US$368 million in Thailand last year, up from $355 million in 2005 and $184 million in 2004.
Under the Special 301 Act, Washington can take trade action or seek dispute settlements against countries on either the Priority Watch List or the Watch List.
Public Health Minister Mongkol na Songkhla vowed to go on lowering drug prices to expand the poor's access to essential medicine.
"We have not done anything wrong. We followed the process closely by announcing the plan to use compulsory licensing before implementing it," he said. The move was "absolutely legitimate" and in line with World Trade Organisation (WTO) rules, the minister said.
The decision to put Thailand on the Priority Watch List reflected the influence drug firms had over the USTR, he said.
The ministry implemented compulsory licensing for the Aids drug Efavirenz in November. The patent owner, Merck, later announced a worldwide cut in the price of the medicine to 725 baht. In Thailand, patients previously paid 1,500 baht a month to use Efavirenz.
The ministry announced a similar policy for heart drugs Kaletra and Plavix in January. But it has not yet been implemented because there is enough stock of these drugs to last until August.
Health activist Jon Ungpakorn urged the Commerce and Foreign ministries to work with the Public Health Ministry to defend compulsory licensing rather than leave the task to this ministry alone.
Intellectual property law expert Jade Donavanik said compulsory licensing was for government use and did not violate the WTO agreement. "It is unfair to interfere with another country's sovereignty by taking unilateral trade action like this," he said, referring to the USTR move.
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