Thailand Warned on Counterfeit Drug Transhipment

A US-ASEAN meeting has highlighted the growing problem of counterfeit drugs in Thailand, with US officials calling for harsher penalties to curb the trade. The country is emerging as a major transhipment point for copy and counterfeit drugs from China and Eastern Europe, with the trade flourishing in recent years on the back of lax patent controls.

The Office of the US Trade Representative has long cited counterfeiting and parallel trade as reasons for Thailand's regular inclusion on the agency's intellectual property "watch" list. With talks currently ongoing on a US-Thai Free Trade Agreement, patent law is likely to become an even more contentious area.

Although counterfeit drug seizures are increasing, US officials clearly believe that not enough is being done to discourage the lucrative trade. Current penalties amount to a fine of just THB40,000 (US$1,008) and a four-year prison sentence, and last year Asia-Pacific customs officials impounded some 2.56mn counterfeit pills of Viagra alone.