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Daily News - 3 May 2000
High cost of pharmaceuticals: controversial issue in DR and US
The Asociación de Industrias Farmaceuticas Dominicanas, Inc. says that behind the movement to get the President to veto the recently passed Intellectual Property Bill is that the pharmaceutical multinationals oppose competition from national manufacturers in their attempt to preserve their high profits. All the fuss is merely business lobbying by pharmaceutical companies attempting to keep control of market where local companies have increased their market share to 51%, say the local manufacturers in an advertisement in the press today. Their position is that the pharmaceuticals want to keep their privileges in an irregular manner.
The Association publishes today a list of comparative prices showing the excessive pricing of the pharmaceutical multinational products in the DR. Following is a listing of the drug and the cost of the multinational brand and its local equivalent. Prices are in RD pesos. To get the dollar equivalency, divide by 16.
Enalapril - $581/$149
Simvastatina-$677/$312
Amlodipina-$704/$1674
Piroxicam-$1,560-$357
Fluoxetina-$659.75-$183.55
Nistatina-$225/$76
Omeprazol-$767-$325
Ranitidina-$280-$104
Piracetam-$360/$234
Lovastatina-$859-$286
The excessive profit of US pharmaceuticals is a controversial matter in the US, too. Brian Schweitzer who is running for the Montana Democratic nomination to challenge Sen. Conrad Burns (R-Mont.), maintains a crusade against the high cost of prescription drugs in the United States versus pricing of the same drugs in Canada and Mexico. (http://www.brianschweitzer.com/crusade.html)
Expert says new bill is compliant with WTO rules
While the American and European chambers of commerce wave the threat that the US government could remove trade privileges (such as CBI and GSP), economist Jaime Aristy writes in the Listin Diario newspaper that this would not stand in today's trade world that is ruled by the World Trade Organization. To contest the content of the Intellectual Property Bill passed by the Congress, a claim would have to be placed before the WTO organization created for this purpose, the Dispute-Settlement Body (DSB), says the reputed economist and intellectual property expert.
Aristy says that the new bill fills WTO stipulations. He said that the Dominican legislators included elements that ensure the transfer of technology and promotion of internal competition that is necessary to raise the welfare of the Dominican people.
Aristy was critical that a group of Dominican businessmen were letting themselves be used to spread the news of a possible threat of removing preferential trade privileges seeking to convince President Fernández to not sign the bill into law. (See http://www.dr1.com/daily/news050200.shtml)
Aristy comments that the president of the influential National Council of Business, Celso Marranzini who initially supported the bill as passed by Congress, abruptly did an about-face in his position. He quotes Marranzini saying early on: "It is understandable that the US is interested in bills that are made as they want, but this is not a matter of making a custom-made suit, bills should be made in accordance to the reality of each country." Marranzini emphasized that countries need to legislate on bills that are convenient to the interests of the majority.
Aristy said that the bill was made consulting with international trade experts, such as Carlos Correa and Luis Abugattas.
Government position on Intellectual Property Bill
Minister of Industry and Commerce Luis Manuel Bonetti explained that the bill was prepared with the assistance of consultants from the World Intellectual Property Organization. "Nobody can be penalized, that's what the arbitrage department of the WTO is for," he says. He explained that Uruguay was excluded from the 301 listing of the US government because it has an intellectual property bill. He said that the 301 listing is illegal in regards to international order because no country has the right to self-designate itself as the certifier of trade policies of all countries.
Dominican representative before the WTO, Federico Cuello explains, "Five years after the establishment of the WTO, it is unfortunate to observe how small and open countries such as ours are pressed to renounce rights acquired when ratifying the Uruguay Round agreements." He said that the Trade Related Aspects of Intellectual Property Rights (TRIPS) is inspired on principles of equity and equilibrium. He said the DR is being forced to resign its rights to favor the most profitable and compact industry in the world, the pharmaceutical industry. And its consequences would be dramatic for the 8.5 million Dominican consumers, whose precarious income is barely enough to pay for the basic need basket, says the Minister.
"It is necessary to create an awareness, especially in the minds of our business leaders, about the favorable margin that there exists to safeguard national interests in the application of TRIPS," highlights Ambassador Cuello, the nation's WTO expert.
"Trips is not a model law, but an agreement that specifies minimum protection standards. Each country is free to apply those standards regarding its internal systems," explains Cuello who says that that is what the country has done with the new intellectual property bill.
17 slums to benefit from European Union program
El Siglo newspaper reports that 17 slum barrios will benefit from a 10-year, US$22-million program to improve basic infrastructure in Santo Domingo. The program, "Saneamiento de Barriadas Marginales" will favor the most impoverished barrios in the capital city of the Dominican Republic. Self-sustainable programs will be put in place for garbage collection, potable water and sewage management. The program will begin with the barrios of Domingo Savio, Maria Auxiliadora, La Zurza, Ensanche Capotillo and Los Tres Brazos, that have a population of 200,000 people, and where most families have incomes under minimum salary levels (US$105 a month).
The program is coordinated by the Lomé IV Office and will be implemented by the Consejo Nacional de Asuntos Urbanos in cooperation with the Municipality of Santo Domingo and the Water Corporation of Santo Domingo.
González not yet extradited to US
DR1 reported erroneously yesterday that Rafael Gonzalez Pantaleon had been extradited to the US from Amsterdam. Gonzalez is still in Amsterdam. Minister Eduardo Latorre denied that Gonzalez Pantaleón was on an official mission to Kuwait as originally reported in the press. González was arrested in Amsterdam where he made a transit stop on his way to Kuwait. The US requested the extradition of the former Dominican diplomat who on 20 January 1998 was sentenced to 78 months in prison and the payment of a US$3.5 million fine for Medicare fraud. The Holland and US have an extradition treaty. Gonzalez has up to 60 days to dispute the extradition request.
More than 15,000 Dominicans die attempting Puerto Rico crossing
The Listin Diario reports that 15,000 Dominicans have died when attempting to make it to Puerto Rico by boat. The news report says there has been a decline in the number of boat trips as of 1996, when the Fernández government instituted new controls. 75% of the deaths occurred from 1980 to 1990. The report says that an estimated 168,000 travelers have purchased the one way tickets on the illegal boat trips. Of these an estimated 60% were arrested, 33% made it, and 10% drowned.
The Dominican Navy statistics show that from 1998-2000, there were 106 deaths attributed to the boat crossings, 443 persons were arrested, 17 boats confiscated, 38 trips frustrated, 153 stowaways arrested, 21 boats captured, 22 captains arrested.
Most Dominicans still have the idea that the "grass is greener on the other side", and fall easy prey to illusion vendors that sell fares for about RD$15,000, almost US$1,000, making it a very lucrative business for promoters.
Ahora Magazine returns to Dominican media
Rafael Molina Morillo, former executive editor of the Listín Diario newspaper, has relaunched his Ahora Magazine. The magazine was the DR's first newsweekly, first appearing in 1962, but eventually being discontinued. Molina Morillo sold Ahora Magazine and the El Nacional publications company to the Corripio Group in 1978. The Corripio Group is now backing Molina Morillo in the relaunching of the magazine. The general newsmagazine will focus on political issues, providing in depth analysis. In its first issue, it features an interview with President Leonel Fernández. Fernández is barred by Constitution from running in the 2000 presidential election, but is considered at this time the strongest contender for the 2004 election.
Construction material controversy
The government granted construction material companies 60 days to extract aggregate from riversides. The Academy of Science protested that the government did not adhere to the recommendations made by the commission it called to study the problem of the effect of removing construction materials from Dominican rivers. The Academy of Science said that the government had established the areas where the materials could be extracted, but in the public announcement instead authorized extraction from all rivers. The agreement calls for a 60-day period, but Minister of Public Works Diandino Peña says this could be extended to 30 days or more as needed.
Minister of Public Works emphasized that the pace of public and private construction works could not be stopped.
JCE rules schools to close for three days for election
The Junta Central Electoral ordered the closing of Dominican schools Monday, Tuesday, and Wednesday of next week. The presidential election is slated for Tuesday, 16 May. Public schools are used to set up voting stations. The measure affects private schools, probably out of a sense of equity. Schools will resume classes on Thursday, 18 May.
Two substitute electoral judges chosen
The Senate voted favorably on Sabrina de la Cruz Vargas (PRD) and Teófilo Regus Comas (PLD) as substitute judges for Ana Teresa Pérez and Leonel Rodríguez Estrella, respectively. The third judge substitute is pending the recommendation of the PRSC.
Balaguer supports Jacinto Peynado
Former President Joaquín Balaguer, who is running for the presidency for the seventh time on the PRSC ticket, urged his followers to support his vice presidential candidate, Jacinto Peynado.
Following the keynote speech by the PRSC's vice presidential candidate, Balaguer gave his two-minute address.
Balaguer said: "All that I have to add to what has been said here is that I hope you help carry out what president Peynado has promised, help him keep the Dominican flag flying high, and accept that we are all members of the same family, the Dominican family. With that watchword we will win and turn reality what you have described in the illuminating speeches I have heard. Thank you and see you soon."
In the 1996 election, Peynado ran for President on the PRSC ticket. At that time, then President Balaguer endorsed the candidacy of PLD candidate, Leonel Fernández, sacrificing his party's candidate. Balaguer spoke at a fund-raising luncheon for businessmen held at the Hotel Jaragua.
Balaguer is blind, 94 years old and shows his age. In his few campaign appearances, he has barely been able to speak for two or three minutes per appearance.
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