WRITTEN QUESTION P-0234/02 by Jonas Sjöstedt (GUE/NGL) to the Commission. Future cost of medicines.
Date: 2002-01-30
Institutions: European Parliament, Provisional data
Subjects: accession to the European Union, derogation from EU law, enlargement of the Union, free movement of goods, import policy, medicinal product, patent, patent law, selling price

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14.11.2002

for Cyprus in May 2000. The total pre-accession budget allocated to Cyprus for the period 2000-2004
adds up to € 57 million . These pre-accession funds will finance co-operation projects and activities which
are a priority to prepare for accession. One third of the funds should be used to finance bi-communal
projects (activities to contribute to the reconciliation of the two Cypriot communities).

The 2000 pre-accession allocation (€ 9 million) has been programmed to support activities in the
following sectors:
taxation, customs, Schengen Information System, administrative cooperation, bi-
comunnal projects, and participation in the Community programmes in the sector of education (Socrates,
Leonardo, Youth).

The main projects foreseen under the 2001 allocation (€ 11,5 million) include the following activities: bi-
the state laboratories, urban
communal projects, VAT and customs harmonisation, upgrading of
wastewater, and participation in Community programmes. The implementation of
these projects is
expected to start in 2002.

As mentioned above, several bi-communal projects have been programmed under the 2000 and 2001
budget. The Union will contribute € 6,3 million to the urban revitalisation schemes and historical
preservation as part of the Nicosia Master Plan. This Plan is aiming to preserve the cultural and historical
heritage of the walled city, so as to provide a new impetus for private investments and to improve the
urban fabric. The Community project will be implemented through the executing agency of the United
Nations Development Programme called UNOPS (United Nations Office for Project Services), which has
been active with the Nicosia Master Plan since 1998. The Union is also providing € 0,3 million of support
for trade unions to improve the links between Greek Cypriot and Turkish Cypriot unions and to develop
shared interests in the light of accession to the Union. A Communication Strategy (€ 0,2 million) is
designed to increase public awareness and interest in the Community for both Greek and Turkish Cypriot
communities.

As regards participation in Community Programmes, Cyprus is currently participating in Media II, Life II,
the 5th Programme for Research and Technological Development (R & D), Socrates, Leonardo, Youth, and
the 3rd Multiannual Programme for small and medium-sized enterprises.
to streamline
Community legal procedures and thereby facilitate future participation of Cyprus in Community
programmes, an Agreement is in the process of being concluded between the Community and Cyprus
establishing the general principles for such participation.

In order

In the event of a settlement between the two Communities in Cyprus, additional Community assistance
will be required in 2003 to help the northern part of Cyprus prepare for membership of the country by
transposing and implementing the acquis communautaire. This assistance will also allow to kick-start the
needed reconstruction efforts. In the event of a settlement the Commission will propose to use the
appropriate budgetary instrument to assure the mobilisation of the necessary funds.

Finally, such a peace package will also allow a smooth preparation for the measures, for an amount in the
range of € 200 million ,
identified by the Commission in its Common financial framework for the
accession negotiations (1) to help the northern part of Cyprus to catch up in its development after
accession.

(1) SEC(2002) 102.

(2002/C 277 E/025)

WRITTEN QUESTION P-0234/02

by Jonas Sjöstedt (GUE/NGL) to the Commission

(30 January 2002)

Subject: Future cost of medicines

Medicinal products are a considerable item of spending in the Member States and the cost is even higher in
the case of patented drugs, the only competition for which comes from parallel imports. It is therefore
important for there to be no restrictions to free movement in the market for medicinal products.

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It has been reported that exceptions from this principle have been made for the medicinal products market
in the accession negotiations preceding the forthcoming enlargement of the EU. The outcome is said to be
to bar parallel imports of medicinal products from new Member States in many cases for transitional
periods of up to eleven years.

What is the reasoning behind these exceptions? What analyses have been made of the increase in the bill
for medicinal products in the Member States of the EU as a result of these exceptions, by comparison with
the situation if they had not been made?

Answer given by Mr Verheugen on behalf of the Commission

(26 February 2002)

The Candidate Countries have introduced patent protection for pharmaceutical products between 1991
and 1995 apart from Cyprus and Malta which introduced patent protection in the 1920’s and 1900’s
respectively. Since the new patent laws have no generalised retroactive effects, all medicinal products
which were marketed in the applicant countries before the change in the legislation took place, will remain
unprotected there while they are still under patent in the Union.

In order to minimise potential problems resulting from this situation,
the Union has proposed a
mechanism which will only apply to patented products; the legally produced generic products will
continue to circulate freely within the enlarged Union. According to this mechanism the patent holder may
prevent, after accession, the import into the Union of a product patented in a Member State at the time
when a product patent could not be obtained in candidate countries for that product. It will therefore
avoid parallel imports and thus the detrimental effect these practices could have for the research and
development industry.

(2002/C 277 E/026)

WRITTEN QUESTION E-0242/02

by Glenys Kinnock (PSE) to the Commission

(6 February 2002)

Subject: EU/ACP trade negotiations

To what extent will the draft negotiating instructions for the ACP-EU trade negotiations, which are set to
start
in September 2002, allow the Commission to comprehensively address the concerns of ACP
governments in respect of:

E the impact of the introduction of free trade with the EU on the fiscal revenues of ACP governments;

E the impact of a reformed CAP on the development of ACP agricultural export sectors;

E the supply side constraints in ACP countries which inhibit

their effective exploitation of trade

preferences;

E a real improvement in ACP access to the EU market;

E ensuring respect for the rights of least developed countries to non-reciprocal trade preferences under

the Commission’s economic partnership agreement proposals?

Answer given by Mr Lamy on behalf of the Commission

(19 March 2002)

The draft directives for the negotiation of Economic Partnership Agreements (EPAs) are being finalised
within the Commission. It is therefore still too early, at this stage, to give a detailed answer to the
questions raised by the Honourable Member.