A deal to provide cut-price copies of life-saving drugs for the world's poorest people was on the brink of collapse yesterday in Geneva, after developing countries objected to a last-minute compromise worked out to pacify the US pharmaceuticals industry.
A marathon session of negotiations ended early yesterday morning with no deal, amid bitter recriminations and accusations of sabotage.
Delegates failed to bridge their differences over relaxing global patent laws when they reconvened last night, despite an impassioned warning from the World Trade Organisation (WTO) director general Dr Supachai Panitchpakdi that the stalemate could jeopardise the Cancun summit of trade ministers, which begins in less than two weeks.
Dr Supachai said the credibility of the WTO was at stake and told delegates: "Don't forget the point of this exercise was principally to help Africa."
Trade analysts fear that if delegates fail to settle the matter at an emergency meeting this weekend, it could poison the atmosphere in Cancun.
Preparations for the summit have already been overshadowed by clashes over farm subsidies and tariff cuts.
"We have to get this right, not just for us but, more importantly, for the people who desperately need these medicines," the meeting's chairman, the Uruguayan ambassador Mr Carlos Perez del Castillo, said.
Mr Eduardo Perez Motta, Mexico's ambassador, acknowledged that having the agreement unresolved in Cancun could jeopardise what already promises to be a difficult meeting.
The compromise hammered out by the US and four key developing countries was supposed to be ratified by all 146 members of the WTO on Thursday night.
But when the Philippines indicated it was unhappy with the requirements on developing countries to prevent smuggling, dissent swelled among developing countries, with 20 indicating they had problems with the draft deal.
Some trade experts said rich countries had made the mistake of thinking they could neutralise developing countries' grievances on a wide range of issues with a PR triumph over drugs when, they say, the deal leaves significant hurdles in the way of countries wanting to import cheap copies.
