Indian pharma exporters may be asked to boycott KLM airline by commerce ministry: Reports

KLM boycott will be a retaliatory action against EU nations confiscating Indian drug shipments illegally

Pharmaceutical companies from India exporting to European nations may be asked to boycott the Dutch airline KLM by the commerce ministry, as part of its ongoing efforts to force EU countries to stop seizing drug consignments from India at their ports alleging patent violations and other counterfeiting charges, reports said.

The commerce ministry, under government of India has already taken the decision to complain World Trade Organization against the European Union nations for seizing Indian shipments carrying pharma products destined to other parts of the world on account of alleged violations of patents.

Indian pharma exporters to EU countries could be motivated to stop using KLM -the airline based in the Netherlands – aircrafts for despaching their pharma export consignments to European countries as retaliatory move to make the adamant EU countries to fall in line, sources from the Union Commerce Ministry  reported said.

The Netherlands is also one of the conutries engaged in the practice of seizing Indian drug cargo at their ports. Netherlands customs authorities at Rotterdam has recently confiscated Indian shipments carrying generic version of the off-patent blood pressure drug losartan destined for Brazil.

KLM is one of the most widely used airline by Indian companies who despatch their cargo to European nations and Latin American and African countries.

As one of the leading pharma exporters in the world, Indian pharma companies send huge volumes of APIs and finished formulations using KLM airlines to different parts of the world.

Hence, if Indian companies stop using KLM for shipping their cargo it could result in huge losses to the Dutch airline, reports said.

EU countries, which started the practice of stopping Indian pharma shipments at their ports a year ago, started enforcing local patent rules a few months  months back.

Patent norms in EU countries stipulate that any product patent that has been granted in EU countries, if being transported through their countries, is also liable for confiscation under their patent law.

Generic drugs from India which are meant for Latin American countries have been seized by European port authorities alleging infringement of intellectual property rights.

The Indian generic drugs shipments, which were headed for Peru, Columbia, Ecuador, Mexico and many other countries, included medicines for treatment for AIDS, Cardiac problem, schizophrenia, dementia.

Indian generic shipments were seized at various European ports including Miami, Germany, France and The Netherlands.

However, Indian generic companies said that most of these drugs shipped to countries like Brazil, Peru, Columbia, etc where these drugs are not patented.

Indian government has been in talks with EU countries at different international forums during the last several months to find an amicable solution to the confiscation issue.

Generic delivery is legitimate under WTO rules, Oxfam and the independent Health Action International report say.

However, the EU authorities continue to argue that they need to check for counterfeits as these are dangerous for public health.

EU is increasing pressure on developing country governments to surrender their rights to obtain affordable, generic medicines in order to protect public health, even though these rights are guaranteed under global trade rules, the report says.