2011/SOM1/ACT/WKSP/SUM
Summary of APEC Dialogue on Corruption & Illicit Trade: Combating Counterfeit Medicines and Strengthening Supply Chain Integrity
On March 2, 2011, the APEC Anti-Corruption and Transparency Task Force (now Working Group) (ACT), Intellectual Property Experts Group (IPEG), the Life Science Innovative Forum (LSIF), and the APEC Business Advisory Council (ABAC) co-hosted the APEC Dialogue on Corruption and Illicit Trade: Combating Counterfeit Medicines and Strengthening Supply Chain Integrity (Dialogue). In their recommendations to the Economic Leaders in 2009, the APEC Business Advisory Council (ABAC) urged APEC to take action to tackle illicit trade, a problem that may account for 15-20% of global trade. Responding to APEC Leaders’ and Ministers’ calls to leverage collective action to combat corruption and illicit trade, the Dialogue brought together representatives from all 21 APEC economies, several international organizations, and the private sector to focus on combating corruption and illicit trade in falsified/counterfeit medicines given the devastating impact that such medicines have on the health of APEC economies, as well as on the health and safety of individuals.
Following keynote speeches delivered by Victoria Espinel, U.S. Intellectual Property Enforcement Coordinator, Executive Office of the President, the White House, and John Morton, Director of U.S. Immigration and Customs, Homeland Security Investigations, U.S. Department of Homeland Security, the Dialogue’s four sessions respectively addressed (1) the legal, regulatory, and policy measures that are necessary to effectively combat corruption and illicit trade with respect to counterfeit medicines; (2) best practices for investigating corruption and illicit financial flows; (3) the need to strengthen and coordinate regulatory capacity and supply chain integrity; and (4) ways that public and private sector counterparts can collaborate to combat the flow of counterfeit medicines. Dr. Margaret Hamburg, Commissioner of the U.S. Food and Drug Administration (FDA), provided closing remarks.
Dialogue and ACT Chair David Luna applauded the cross-subfora cooperation within APEC over the years to build a common agenda on combating corruption, illicit trade, counterfeits—including counterfeit medicines—and other cross-border illicit threats that impact APEC economies, especially in areas where they threaten human health and safety. ACT Chair Luna also emphasized the importance of creating a community of vigilance against corruption to ensure that criminal networks do not export harmful illicit goods across the Pacific and encouraged APEC economies to work together to disrupt illicit markets, to dismantle the networks trafficking in these dangerous products, and to deprive criminals and corrupt officials of their profits by denying them safe haven and tracking their financial illicit flows. The IPEG Chair’s remarks complimented those of the ACT Chair, demonstrating APEC cross-subfora support for work on this issue.
Throughout the day, the keynote speakers and panelists highlighted the public health impact of falsified/counterfeit medicines; the urgency of combating corruption and illicit trade; the need for coordinated international action; and the importance of law enforcement operations, as well as true public-private partnerships. Ms. Espinel, for example, stated that “we need to take aggressive steps to address [the problem of falsified/counterfeit pharmaceuticals] now”; that “no economy alone can combat this scourge”; and that “law enforcement action is critical” but that “private industry ... must take voluntary and pro-active measures too.” Director Morton similarly stated that we must act quickly to maintain—and not lose—consumer confidence and emphasized the importance of law enforcement, noting that the public tends to view a lack of enforcement as complicity in committing a crime. Case studies presented by several panelists further outlined how criminal prosecutions protect consumers from adverse impact to their health and fraud; provide stability in the commercial market and promote legitimate trade; protect intellectual property rights and promote research and development; and deter the smuggling of falsified/counterfeit medicines more effectively than civil monetary penalties. Several panelists also highlighted how international cooperation and cooperation from the private sector in investigating suspects and sharing information is essential. Furthermore, keynote speakers and panelists encouraged the ACT and other APEC subfora to mobilize leaders to launch a regional network to combat illicit trade and stem the flow of dangerous products that harm APEC communities.
Moving forward, the ACT, in conjunction with IPEG, LSIF, and the ABAC, will continue efforts to build effective partnerships and synergies across APEC economies, raising further awareness of the public health impact and costs of counterfeit medicines, as well as strengthening regulatory and law enforcement capacity to protect APEC communities. For example, the first activity of the LSIF-endorsed “Falsified/Counterfeit Medicines Action Plan” is an APEC Drug Safety and Detection Technology Workshop that will take place in Beijing, China, September 27 – 28, 2011. Similarly, IPEG will continue its work on counterfeiting, including work related to falsified/counterfeit medicines, and look for opportunities to collaborate with the ACT and LSIF in 2011, building on the Dialogue. Meanwhile, the ACT will continue its work plan to combat corruption and illicit trade, especially removing barriers that harm APEC’s goals of creating a more vibrant regional economy that will spur investment and trade, create jobs, improve social safety nets, and strengthen an entrepreneurial spirit that nurtures innovation, openness, and competiveness.
As stated by Commissioner Hamburg, the illicit trade of counterfeit medicines is “a global problem that crosses many sectors. It cannot—and will not—be solved by the actions of any one agency or nation. It requires all of our resources—and all of our ideas. So we must band together. We must share information and compare analyses. And we must leverage our limited resources and implement coordinated international actions to protect people and promote the global public health.”