An unequal partnership? Trans-Pacific accord will hamper markets for halal medicines, critics say

The world’s largest regional trade pact in the making—the 12-nation Trans-Pacific Partnership-- will undoubtedly affect the world’s largest emerging market force—the halal economy. But how the TPPA will do that is an open and controversial question, as negotiators pick apart a controversial push for stronger patent protections.

At stake is whether stricter intellectual property standards could stymie Muslim nations’ abilities to produce and deliver more affordable and possibly halal-compliant versions of drugs.

The TPPA involves Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam — whose GDPs total a staggering $27.7 trillion, covering everything from food products to cars, cosmetics and pharmaceuticals.

Two Islamic countries involved in the talks, Brunei and Malaysia, have a keen interest in ramping up production of halal medicines for export, but provisions from the U.S. seeking to deepen IP rules could frustrate potential makers of generics.

Critics say these provisions will lead to higher medical costs, and limit access to much-needed drugs. That fear has spawned large and ongoing protest marches in some nations, including Malaysia, Australia and New Zealand.

Rohit Malpani, director of policy and analysis for Doctors Without Borders, cites Hepatitis C drug treatments as an example of what he describes as “monopoly protection” that could affect many markets.

“The key drug for Hep C is called Sofosbuvir, and the cost of manufacturing the drug is incredibly low, or about $101 for a 12-week treatment,” Malpani said. “[The drugmaker] Gilead is charging as high as $1,000 a pill for $84,000 overall.”

GENERICS AND LOWER COST OPTIONS

Without cheaper generics in the marketplace, Malpani said, the steep prices for a potentially life-saving drug for an infectious disease that affects up to 180 million people worldwide could be out of reach for many.

“Malaysia is also a country where we know some organizations are interested in potentially getting lower-cost versions of these produced,” he said. “The existence of these rules would make it very difficult to do so.”

HALAL OPTIONS

While many drug treatments are chemical and may contain no organic components, some pharmaceutical preparations for pills include gelatine, an ingredient derived from the bones or cartilages of animals that may include cows, pigs or horses. Such preparations could be considered haram, or forbidden, in Islam.

Halal-certified versions of medicines and health supplements are being seen as a desirable option for Muslims who may not feel comfortable with taking brand-name drugs that may not meet halal standards.

Muslim consumers around the world spent $70 billion on pharmaceuticals in 2012, or about 6.6 percent of global expenditure, according to the Thomson Reuters State of the Global Islamic Economy Report 2013. By 2018, the report said, this expenditure was expected to grow to $97 billion.

‘INCENTIVES’ FOR INNOVATION

While humanitarian groups harbor concerns about access to cheaper generics for developing nations, one counter-argument is that patent protection is necessary for spurring innovation.

“Going forward, it’s important to have incentives so drug companies can continue to develop life-saving drugs,” said Francis Ahking, an associate professor of economics with the University of Connecticut.

“Without patent protection, nobody will want to do research, because development is so expensive.”

Ahking said the tougher IP enforcement could also counter a potential black market for non-approved and knock-off drugs.

‘HUMAN RIGHTS FOR HUMAN GREED’

Ultimately, he said the main focus of the talks will be on reducing tariffs.

“As far as Muslim countries are concerned, the patent protection is just not going to be a deal-breaker,” Ahking said.

For his part, Malpani says Doctors Without Borders has found no basis for arguments that IP provisions help spur research and development, and that the tougher rules would trade in human rights for human greed.

What is clear is though the deal may be “tantalisingly close,” as New Zealand’s Prime Minister John Key described it in August, the pharmaceutical provisions remain a key, and very stubborn, sticking point.

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