EU requests WTO panel over Turkey’s pharma measures

The European Union has asked the World Trade Organization (WTO) to establish a panel on Turkey’s measures on pharmaceutical products.

In April, the EU requested the intergovernmental organisation initiate dispute consultations with Turkey over the measures over on the importation and sale of pharmaceuticals.

The measures at issue, which include technology transfer requirements, are inconsistent with the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), according to the EU.

Late last week, on Friday, August 2, the EU requested that a dispute panel be set up, following consultations in May that failed to resolve the matter.

“The dispute with Turkey concerns measures that force foreign pharmaceutical producers to move their production to the country if they want their medicines to be eligible for reimbursement for consumers under the Turkish health system,” said the EU.

According to the European Commission, the value of pharmaceutical exports likely to be affected by these measures reaches €460 million ($518.9 million) and, if further implemented, could potentially affect all EU exports to Turkey worth more than €2.5 billion.

The EU’s complaint added that to achieve its aim of localising the production of a substantial proportion of pharmaceutical products consumed in Turkey, the country is requiring foreign producers to commit to localise their production of certain pharmaceutical products.

As part of this requirement (or closely connected to it), foreign producers may be required to transfer technology, including patent rights, to a producer established in Turkey. But this requirement doesn’t apply to Turkish producers, which violates the TRIPs Agreement, according to the EU.

The panel request will be discussed for the first time at the meeting of the dispute settlement body (DSB) on August 15, 2019, where Turkey can object to the establishment of the panel.

However, if the EU tables this issue again at the following DSB meeting, Turkey will be unable to block the request.

Once the panel is established, the parties and/or the WTO director-general will select three persons serving as panellists who will then start the actual adjudication procedure.

Did you enjoy reading this story?  Sign up to our free newsletters and get stories like this sent straight to your inbox.