The Legislative Yuan approved the first reading of an amendment to a WTO agreement yesterday, which will allow Taiwanese pharmaceutical companies to make cheaper generic drugs for underdeveloped countries to combat fatal diseases such as HIV/AIDS, malaria and bird flu.
The WTO initiative, called Protocol Amending the Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPS), will make it easier for poorer countries to import cheaper generic drugs made under compulsory licensing if they are unable to manufacture the medicines themselves.
The amendment to TRIPS Article 31 regarding compulsory licensing, which was approved by WTO member states in August 2005, authorizes pharmaceutical companies in WTO countries, if requested, to manufacture and export cheaper generic drugs to least developed countries, without having to pay the patent holders.
“Following the Cabinet’s approval of this amendment last month, the final approval from lawmakers will allow the government to report Taiwan’s TRIPS acceptance to the WTO Secretariat through Taiwan’s mission to WTO in Geneva,” said Wang Mei-hua (王美花), director-general of the Ministry of Economic Affairs’ Intellectual Property Office (IPO).
The WTO’s General Council has asked all member nations to obtain approval from their own lawmakers and to notify it no later than Dec. 31 next year. Once two-thirds of members have formally accepted it, the amendment will take effect in those states.
The IPO head said that final approval of the amendment could be settled in about two months.
“At present, 15 of the 151 WTO member states have notified the WTO of their acceptance, including the US, the EU, Japan, China, Australia and South Korea,” she said.
Wang said Taiwan will also have to revise its patent regulations to accommodate the new TRIPS regulations.
“The bureau has drafted a revision of the patent statute, which will also be reviewed by the legislature at some point,” she said.
Wang said that once the legal grounds for the amendment are established, Taiwan would be able to contribute more to the international community, particularly to poor countries that have little or no technological or financial ability to offer advanced medical treatment.
“With its advanced pharmaceutical ability, Taiwan could offer assistance especially to its 23 diplomatic alliances, most of which are underdeveloped countries,” she said.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
PRESSURE EXPECTED: The appreciation of the NT dollar reflected expectations that Washington would press Taiwan to boost its currency against the US dollar, dealers said Taiwan’s export-oriented semiconductor and auto part manufacturers are expecting their margins to be affected by large foreign exchange losses as the New Taiwan dollar continued to appreciate sharply against the US dollar yesterday. Among major semiconductor manufacturers, ASE Technology Holding Co (日月光), the world’s largest integrated circuit (IC) packaging and testing services provider, said that whenever the NT dollar rises NT$1 against the greenback, its gross margin is cut by about 1.5 percent. The NT dollar traded as strong as NT$29.59 per US dollar before trimming gains to close NT$0.919, or 2.96 percent, higher at NT$30.145 yesterday in Taipei trading