EU files WTO case against Turkey over unlawful measures on pharmaceuticals

By PharmaCompass

2019-04-11

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The European Union (EU) has launched two World Trade Organization (WTO) cases. While one is against India for unlawful import duties on information and communication technology (ICT) products, the other one is against Turkey for its unlawful measures on pharmaceuticals, a European Commission statement said.

“Turkey is discriminating against EU pharmaceuticals producers by forcing them to move production there. This is a clear violation of WTO rules and puts many EU jobs at risk,” European Commission’s Commissioner for Trade, Cecilia Malmström, said.

The case against Turkey involves foreign producers of pharmaceuticals who are being compelled to move their production to the country, if they want their medicines to be eligible for reimbursement for consumers under the Turkish health system. In addition, Turkey applies a number of technology transfer requirements in cases where companies move production to Turkey.

“These measures are a clear violation of Turkey’s WTO obligations to treat foreign companies on equal footing with domestic ones, and to protect intellectual property of foreign companies, such as patents and business information, on its territory,” the statement said.

The EU further remarked that the estimated value of pharmaceutical exports that could be affected by these measures may reach US$ 519 million (€460 million) and, if implemented, they could potentially affect all EU exports worth more than US$ 2.8 billion (€2.5 billion) to Turkey.

“Since the start of the Juncker Commission in November 2014, the EU has won nine WTO cases. This led to removing discriminatory taxes, illegal customs duties or other trade obstacles affecting exports of EU companies worth €10 billion (US$ 11.28 billion) per year in key markets such as Russia, China, US, and South America,” the statement said.

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“ The article is based on the information available in public and which the author believes to be true. The author is not disseminating any information, which the author believes or knows, is confidential or in conflict with the privacy of any person. The views expressed or information supplied through this article is mere opinion and observation of the author. The author does not intend to defame, insult or, cause loss or damage to anyone, in any manner, through this article.”

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