GUATEMALA RESISTING PRESSURE TO MODIFY INTELLECTUAL PROPERTY LAWS

Guatemalan legislators are resisting pressure from the US to make changes to the country's intellectual property (IP) laws before implementing the Central American Free Trade Agreement (CAFTA). Pharmaceuticals remain a sticking point, with Guatemala fearful that stricter patent protection laws will affect the output of generics, reducing access to low-cost drugs for much of the population.

In Guatemala, recent polls have found that 65% of respondents believe that the CAFTA will harm the country, and when the treaty was originally ratified in March 2005, tens of thousand of protestors filled the streets. The US has persuaded Guatemala to reverse a public health law allowing more generic competition in the drugs market and also wants tougher penalties for breaking IP legislation, especially for counterfeiters.

Washington is also calling for Guatemala to implement five-year data exclusivity periods for drugs marketed in the country. Guatemalan officials voted against such an addition to domestic law in late 2004 and the country remains divided over the issue. Whereas some claim such a move will help develop the research-based drug industry, others fear that it will play into the hands of multinationals by effectively increasing patent protection from 20 to 25 years.