EU warns China to co-operate on counterfeit drugs

The European Commission has warned China that it could block efforts to open up trade between the economies if China fails to co-operate with efforts to clamp down on counterfeit products.

The warning suggests that despite signing a broad-ranging anticounterfeiting agreement with China, the Commission has reservations over whether this is enough to stem the flow of counterfeit products in the EU from the region, including, according to commission estimates, more than 60% of all fake drugs.

The EU signed nine agreements with China at the end of January 2009 during a visit by Chinese premier Wen Jiabao to Brussels. These included setting up a working group to study the flow of counterfeit goods between China and the EU; the exchange of information on risks to intellectual property; operational co-operation between key ports and airports; exchange of officials; and developing partnerships with the private sector in China to better target suspect shipments.

However, the new arrangement was accompanied by a stern warning. ‘Without the implementation of effective legislation to combat counterfeiting, and effective control measures, the EU is not inclined to grant extensive trade facilitation measures to Chinese business,’ the Commission said.

In a report in December 2008, the Commission disclosed that EU customs had identified more than 34 million illegal medicines over a two-month period. The fake medicines, reportedly originating from Asian countries including China, were seized during a coordinated customs operation in the 27 member states and included antibiotics, anticancer, antimalaria and anticholesterol medicines, as well as painkillers, Viagra and drug precursors.

China is by far the largest source (around 60%) of such counterfeit products seized at the EU borders, it added.