Pharmaceuticals may help Russia enter WTO

According to James N. Class, assistant vice president of international affairs at the Pharmaceutical Research and Manufacturers of America, Russia's acceptance into the World Trade Organization may be aided by pharmaceuticals.

During the Soviet era, Russia had a pharmaceutical industry that provided generic versions of Western drugs. After the fall of the Soviet Union, the status of these factories came into question. "You have 7,00 factories that need something to do," said Class. While many of these factories failed to meet Good Manufacturing Practices (GMP), then President Vladimir Putin made a 2004 statement in favor of meeting a better standard of GMP that put national treatment and WTO ascension on the table.

Research and development (R&D) for medicine has not yet been significantly affected by globalization, leaving the U.S. with 79.5% of the R&D market. However, Russia's status as an emerging market can help draw R&D to the country, since populations without a history of heavy pharmaceutical use are considered better for clinical testing. Once clinical testing is brought to an emerging economy, it is possible to increase funding for academic research centers. An increase of R&D funding will benefit Russia by stimulating their industries, addressing security concerns, and by giving Russia the means to stop buying overpriced generics from other European countries Class explained.

Class concluded that there are several factors that are blocking Russia's ascension to the WTO. The efforts have met with domestic resistance at home and the geopolitical situation with Georgia has stalled WTO Working Party meetings that would make the ascension possible. Still, there is a belief that meetings with the Working Party will resume in November, thus removing one of Russia's obstacles.