JOINT UNDERSTANDING BETWEEN THE GOVERNMENTS OF SOUTH AFRICA AND THE UNITED STATES OF AMERICA

Issued by: Department of Trade and Industry

Over the past few months, officials of the Governments of South Africa and the United States of America have been exchanging views with the aim of reaching a common understanding on the matter of intellectual property as it pertains to the pharmaceutical industry.

We are pleased to announce that a resolution to this matter has now been found. This is premised on the commitment of both Governments to the Agreement on Trade Related Intellectual Property Rights (TRIPS) under the auspices of the World Trade Organisation (WTO), as well as an appreciation of the South African Government's efforts to provide affordable health care to its people.

It is the express position of the South African Government that, in the implementation of provisions of the Medicines Act - which permits parallel importation and compulsory licensing of patents for pharmaceuticals - it will honour its obligations under the TRIPS Agreement.

We strongly welcome the fact that this matter has now been clarified to the satisfaction of both Governments. Indeed, our two countries can now move forward to strengthen our co-operation on matters of common interest, without the distraction that this issue had become.

The Governments of the United States of America and South Africa hope that the resolution of this matter will open the way for South Africa to pursue its much-needed health reforms in the interest of its people.

17 September 1999

For further information, contact:

Joel Netshitenzhe
082-900-0083

Tshidiso Matona (Trade and Industry)
082-376-0448