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Inside This Issue www.thedialogue.org Tuesday, June 30, 2009 FEATURED Q&A BOARD OF ADVISORS Will Venezuela Move to Modify Pharmaceutical Patents? Diego Arria Donna Hrinak Director, Senior Director of Latin Earlier this month, Venezuela's Venezuela seems to be following two Columbus Group America Government trade minister said the govern- trends. The first one has a positive stand Affairs, PepsiCo Genaro Arriagada ment was carrying out a review toward innovation, technology diffusion Board Member, Banco Jon Huenemann of patents, including those on and access to medicines. The second trend del Estado de Chile Principal, Qpharmaceutical products, arguing patents points toward the 'nationalization' of both International elevate the prices of goods and fill the cof- foreign and local private undertakings, Joyce Chang Department, fers of multinational corporations. Leaders clearly being the case with recent expropri- Global Head of Miller & Chevalier Emerging Markets of Venezuela's pharmaceuticals industry ations. This latter process could also be Research, JPMorgan James R. Jones say revoking patents and allowing drug expanded to cover 'intangible assets.' The Chase & Co. Co-chair, makers in Venezuela to produce patented Doha Declaration on TRIPS and Public Manatt Jones W. Bowman Cutter medications could discourage foreign Health of 2001 allows countries to take Global Strategies LLC Partner, investment in Venezuela and also cause measures to protect public health and E.M. Warburg John Maisto shortages of medicine. Do you agree? Will encourage countries to use TRIPS flexibili- Pincus Director, more medicine reach the neediest people US Education Finance Continued on page 3 Rui da Costa Group if patents are revoked? How much do pro- Managing Director, tections for intellectual property rights Latin America & the Nicolás Mariscal matter in Latin America's health systems? Caribbean, Chairman, Hewlett-Packard Co. Grupo Marhnos Guest Comment: David Vivas- Alejandro Delgado Thomas F. Eugui: "The recent announce- Economist for Latin McLarty III ments by Venezuela's trade min- America, Africa, the President, Middle East & Mexico, McLarty Associates istry and Intellectual Property General Motors AOffice (SAPI) on patent law and access to Carlos Paz-Soldan medicines have captured the attention of Dirk Donath Partner, Managing Director, DTB Associates, LLP international media. These announce- Eton Park Capital ments indicate in broad terms the direction Management Beatrice Rangel that the Venezuelan government plans to Obama 'Confident' in Colombia Director, take in relation to patent law, access to FTA, But Labor Concerns Remain Jane Eddy AMLA Consulting LLC Managing Director, medicines and industrial policy. While Corporate & Govt. José Antonio Ríos many of the measures announced are US President Barack Obama (R) and Ratings Group, Chief Executive Officer, coherent with internal policies and seem in Colombian President Alvaro Uribe dis- Vadium Technology Inc. Standard & Poor's principle consistent with international cussed cooperation on drug trafficking Marlene Fernández Andrés Rozental obligations, a pragmatic approach is need- and security, clean energy, human devel- Former Bolivian President, ed in their implementation in order to opment and the possibility of a third term Congresswoman Rozental & Asociados ensure some of the practical goals being for Uribe. See story on page 2. and Ambassador Everett Santos sought are actually achieved. The orienta- Photo: Colombian Government. Jason Hafemeister President, tion of the intellectual property system in Vice President, DALEC LLC Allen F. Johnson & Shelly Shetty Associates Inside This Issue Senior Director, Latin Peter Hakim American Sovereign FEATURED Q&A: Will Venezuela Move to Europe's Celesio Buys Majority President, Ratings, Fitch Inc. Modify Pharmaceutical Patents? ........................1 Stake in Brazilian Company..................................2 Inter-American Dialogue Backed by ALBA and OAS, After Failing to Win Congressional Seat, Zelaya Vows to Return to Honduras ...................2 Kirchner Resigns as Party Head..........................3 Obama 'Confident' in Colombia FTA Deal, Brazil Unveils Tax and Interest Rate But Labor Concerns Remain.................................2 Cuts to Speed up Economic Recovery ...............3 Copyright © 2009, Inter-American Dialogue Page 1 of 4 Inter-American Dialogue’s Latin America Advisor Tuesday, June 30, 2009 NEWS BRIEFS Political News ing with Colombian President Alvaro Uribe, the Associated Press reported. Europe's Celesio Buys Majority Some observers say Zelaya, a left-leaning Stake in Brazilian Company Backed by ALBA and OAS, Zelaya charismatic figure most known abroad Stuttgart-based Celesio said Vows to Return to Honduras for being aligned with President Hugo Monday it had acquired a majority Chavez of Venezuela, pushed the limits of stake in Panpharma, a leading Exiled President Manuel Zelaya of his constitutional authority, and that the Honduras said he will travel back to his country's judicial and military institu- Brazilian pharmaceutical wholesaler. country on Thursday in defiance of an tions acted legally in the Sunday coup to The 54 percent stake was acquired early morning military coup that ejected check an overextension of power. by way of a capital increase, him from power on Sunday, Reuters [Editor's note: see related Q&A in an although no specific financial details reported. Speaking in the Nicaraguan upcoming issue of the Advisor.] were disclosed. Panpharma holds a capital at a meeting of the heads of state market share of about 17 percent, allied with the Bolivarian Alternative for Obama 'Confident' in Colombia FTA supplying about 30,000 of the the People of Our America, Zelaya said Deal, But Labor Concerns Remain 52,000 pharmacies in Brazil, and the head of the Organization of American had revenues in 2008 of $3 billion States, Jose Miguel Insulza, had offered to US President Barack Obama on Monday reais ($US 1.54 billion). The agree- accompany him to Honduras Thursday said he was "confident" the US and ment is subject to the approval of after they attend talks over the crisis in Colombia could strike a deal on a long- the Celesio supervisory board. Washington tomorrow at the OAS, stalled free trade agreement, but he ulti- according to the mately rejected a timetable for the bill's Scotiabank Opens New Wealth report. Moreover, passage, citing both the need for further Managment Office in Miami UN General progress on human rights in the South Assembly president American nation and the US Congress' Canada's Scotiabank on Monday Miguel D'Escoto already full legislative plate. Following a launched a new Miami office that Brockmann said meeting with Colombian President Uribe will serve as a hub for the bank's Monday he has invit- at the White House, Obama told reporters expanding wealth management serv- ed Manuel Zelaya to he had instructed US Trade ices in the Caribbean and Latin come to New York Representative Ron Kirk to work with America. The office will provide pri- this week to report Colombian officials in order find ways to vate banking services to non-US res- directly to members proceed with the agreement. "There are idents and non-US citizens only, of the General Zelaya obvious difficulties involved in the Scotiabank said in a statement. The Assembly on the situ- Photo: ABN. process and there remains work to do, but company has similar locations ation in his country, I'm confident that ultimately we can throughout the Caribbean and in the Associated Press reported. Meanwhile, strike a deal that is good for the people of about 1,500 protesters, some of them Colombia and good for the people of the Peru, with plans to open new private masked and carrying sticks, taunted sol- United States," Obama said. He com- banking centers in Chile, Costa Rica, ders and burned tires just outside the mended Uribe on Colombia's progress in Mexico and Panama. Alan Jenkins gates of the presidential palace in a face- reducing human rights violations and will serve as director of the Miami off with security forces yesterday. The sol- violence against labor leaders, but said office. diers sprayed tear gas to disperse the even Uribe acknowledged "there remains crowds. The interim president of more work to be done." Labor protections New Zealand Company to Issue Honduras, head of congress Roberto and human rights have been major stick- Bonds to Develop Uruguay Farms Micheletti, said Monday he would not ing points in the congressional debate NZ Farming Systems Uruguay, a relinquish power to Zelaya and began over the US-Colombia free trade agree- large dairy and agricultural compa- building a cabinet. US President Barack ment, stalled in Congress since 2006, ny based in New Zealand, today Obama on Monday restated that the which Obama opposed as both a senator announced it has obtained regulato- United States still considers Manuel and as a presidential candidate. Obama ry approval from the Central Bank Zelaya to be the president of Honduras and Uribe also discussed extrajudicial of Uruguay for a proposed $30 mil- and assailed the coup that forced him into killings in Colombia, bilateral coopera- exile as illegal. "It would be a terrible tion to combat drug trafficking and lion bond issue in the South precedent if we start moving backwards efforts to promote clean energy and American country. The proceeds into the era in which we are seeing mili- human development. In addition, Obama will be used to finance debt and to tary coups as a means of political transi- did not shy away from addressing the permit continuing development of tion rather than democratic elections," controversy over Uribe's still uncon- the company's farms in Uruguay. Obama said in the Oval Office after meet- firmed plans to seek a third term in office. Copyright © 2009, Inter-American Dialogue Page 2 of 4 Inter-American Dialogue’s Latin America Advisor Tuesday, June 30, 2009 While expressing the importance of self- Featured Q&A determination for Colombians, Obama Continued from page 1 noted that "two terms works for us" in the US. He also mentioned to Uribe that ties.
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