Brazil invokes compulsory license for AIDS drug

Here is a news item of interest to Indian pharma companies

President Lula issued a "compulsory license" on 4 may 2007 that would bypass Merck's patent on the AIDS drug efavirenz, a day after the Brazilian government rejected Merck's offer to sell the drug at a 30 percent discount, or $1.10 per pill, down from $1.57.

The country was seeking to purchase the drug at 65 cents a pill, the same price Thailand pays.
It was the first time Brazil has bypassed a patent, but Lula da Silva said Brazil would consider doing so again on any drug sold at unfair prices. "Between our business and our health, we are going to take care of our health," he said after signing the decree.

After Thailand moved to override patents on three anti-AIDS drugs, including those made by Abbott Laboratories and Merck, the United States placed Thailand on a list of copyright violators.

Brazil had threatened several times to bypass drug patents, but the country had always reached a last-minute agreement with drug manufacturers.

Brazil provides free AIDS drugs to anyone who needs them and manufactures generic versions of several drugs that were in production before Brazil enacted an intellectual property law in 1997 to join the WTO.
But as newer drugs have emerged, costs ballooned and health officials warned that without deep discounts, they would be forced to issue compulsory licenses.

Efavirenz is used by 75,000 of the 180,000 Brazilians who receive free AIDS drugs from the government. The drug currently costs the government about $580 per patient per year.
The Health Ministry says that a generic version of efavirenz would save the government some $240 million between now and 2012, when Merck's patent expires.

BRICs Business Alliance- by Assocham

Assocham ( Associated chamber of Commerce ) organised an event today at their Hqrs in New Delhi to launch this new initiative. The presentation by the representative of Goldman Sachs on the BRICs( Brazil, Russia , India and China) was music to our ears. India would become the third largest economy of the world by 2030 and overtake that of USA by 2040. There were presentations by the embassies of Brazil, Russia and China. Mr Shashank, former Foreign Secretary, the mover behind this new alliance and past president of Assocham Mr Anil Agarwal spoke.

In my talk about Brazil I said
- History and God have been kind to Brazil. In the last 180 yrs of history, India was under colonial rule until 1947 and Russia and China had undergone historic and sytemic changes but Brazil had an undisturbed continuity since its independence in 1825. Unlike the RIC countries, Brazil has not been in any war or seen bloodshed in the last 130 years.. Despite borders with 10 countries, Brazil has not inherited any border disputes.
- God has blessed Brazil with large fertile tracts of land, water and natural and mineral resources and a pleasant climate.
- Brazil has one religion and one language and no probelms of diversity

On the above historical and god-given heritage, Brazilians have now built " man- made fundamentals" which have postioned Brasil for a sustained longterm growth. These are
- irreversible instituitionalisation of democracy and stable, mature and pragmatic polity. In the absence of extremist parties and in the context of inevitable coalition governments in the future,there will be consensual and moderate policies without any radical turns.
- They have decisively overcome the triple curses of inflation, exchange rate- currency and external debt. Macroeconomic fundamentals and the new mindset are healthy and sound.
- Brazil is emerging as an agricultural superpower and can add another 100 million hectares of land besides the 40 million hectares currently being cultivated.
- Brazil is globally leveraging its domestic success of fuel ethanol proramme and has the potential to become a "saudi arabia of ethanol" in the coming years.
- Brazil has become a regional leader of south america through regional integration and a platform for business in the region.

I bet my money on Goldman Sachs report on Brazil and the BRICs.

outcome of visit of Brazilian and Cuban Foreign Ministers 10-13 April

During the visit of Cuban foreign minister 10- 11 April, the Government of India announced the waiver of Cuban debt of 62 million dollars. The principal amount is 29 million dollars and interest accumulated since 1990 was 33 million dollars. Since this issue has now been resolved, trade can be resumed now. Cubans are interested in import of pharmaceuticals, consumer goods and industrial products.

In the Indo- Brazil Joint Commission meeting 12-13 April, a trade target of 10 billion dollars was fixed for 2010. A large Brazilian business delegation will visit India in the first week of June 2007. A Indo-Brazil CEO Forum will be launched soon.

There are opportunities for Indian companies to do railway projects in Brazil and supply locomotives and wagons.
Brazilian infrastucture companies are interested in entry into India.

i- Flex planning a regional centre in Santiago, Chile

This follows the example set by TCS which set up a regional centre in Montevideo, Uruguay.

Indian IT solutions provider i-flex has presented Chile's state development agency Corfo with a request to start a joint feasibility study on a regional development and support center in the country.

The idea was first announced in January after a group of executives and authorities from Chile's private and public sectors visited India to meet with large IT firms to promote the country as a location from where to export services to the rest of Latin America.
The feasibility study is to be ready this month, and to make a final decision one or two months later. The study would include recommendations on installing a facility of this kind in the country, compliances, tax issues and work permits in case there is a need to bring in foreign experts.
Four banks in Chile are already using i-Flex products in their core transformation.

Currently, i-flex operates 14 development centers across India, Singapore and the US. The company posted net profits of US$49.2mn for the fiscal year ending March 2006, on revenues of US$334mn. Latin America accounted for 1% of sales.

Latin America represents 4-5% of global revenues and is set to continue growing 60-70% a year.

visit of Brazilian business delegation 11-13 April 2007

A eleven member business delegation is accompanying the foreign minister.
CII organising a meeting on 13 April afternoon
contact k.v.vidya@ciionline.org at CII
The Brazilian embassy could also be contacted.

Members of the delegation are:

1) DALMO DOS SANTOS MARCHETTI
DIRECTOR, Department of Transport & Logistics (Infrastructure)
NATIONAL BANK FOR SOCIAL AND ECONOMIC DEVELOPMENT - BNDES
TEL: (21) 2172-8044
FAX: (21) 2220-6433
E-mail: dmarchet@bndes.gov.br

2) LEONARDO ANANDA GOMES
DIRECTOR VICE-PRESIDENT
Indo-Brazilian CHAMBER OF COMMERCE, INDUSTRY AND FARMING
TEL: (31) 3264-5444
E-MAIL: leonardo@indiabrazilchamber.org

3) MAURO SEABRA FEDERICI
EXECUTIVE MANAGER IN NEW DELHI
Indo-Brazilian CHAMBER OF COMMERCE, INDUSTRY AND FARMING
TEL: (31) 3264-5444
E-MAIL: federici@indiabrazilchamber.org

4) CAROLINA CHRISTO DE G. SIMÕES
COORDINATOR OF MARKET INTELLIGENCE
Indo-Brazilian CHAMBER OF COMMERCE, INDUSTRY AND FARMING
TEL: (31) 3264-5444
E-MAIL: carolina@indiabrazilchamber.org

5) PAULO GILBERTO FERNANDES TIGRE
VICE-PRESIDENT, Confederation of NATIONAL INDUSTRY
PRESIDENT, FEDERATION of Industries of THE STATE OF RIO GRANDE DO SUL - FIERGS
TEL: (51) 3347-8711 / 8712
FAX (61) 3347-8789
E-MAIL: presidente@fiergs.org.br

6) SERGIO BELLATO ALVES
DIRECTOR, INTERNATIONAL BUSINESS, Defence MARKET AND GOVERNMENT, ASIA-OCEANIA
EMBRAER
Tel: (12) 3927-3912
Fax: (12) 3927-1090
E-mail: sergio.bellato@embraer.com.br



7) TARCÍSIO TAKASHI MUTA
DIRECTOR-PRESIDENT
Foundation for Application of CRITICAL TECHNOLOGIES - ATECH
Tel: (11) 3040-7301
Fax: (11) 3040-7400
E-mail: takashi@atech.br / delfim@atech.br / atech@atech.br / pettena@atech.br

8) FLAVIO MACHADO
EXECUTIVE DIRECTOR OF INSTITUTIONAL RELATIONS
Andrade Gutierrez Constructions
Tel: (61) 3424-3333
Fax: (61) 3424-3332
E-mail: ana.moreira@agnet.com.br / flavio.machado@agnet.com.br

9) ANTONIO CARLOS PORTUGAL
SUPERINTENDENT OF INTERNATIONAL RELATIONS
CAMARGO CORRÊA CONSTRUCTIONS AND TRADE
Tel: (61) 3212-3106/ 3212-3100
Fax: (61) 3212-3117
E-mail: mbetania@camargocorrea.com.br

10) ALFRED SZWARC
CONSULTANT
UNICA – Sao Paulo Sugar Cane Agroindustry Union
Tel: (11) 3812-2100 / 1416
Fax: (11) 3812-3298
E-mail: alfreds@terra.com.br

11) FERNANDO AUGUSTO MOREIRA RIBEIRO
GENERAL SECRETARY
UNICA – Sao Paulo Sugar Cane Agroindustry Union
Tel: (11) 3812-2100 /1416
Fax: (11) 3812-3298
E-mail: fernando@unica.com.br

IMF says Latin America is less vulnerable to global slowdown

Some friends tease me as an incorrigible optimist when I talk about the new stability and growth of Latin America. They accuse me of partiality because of my passion.
Here is what IMF says... confirming what I have been saying
This is Reuters report of 17 march 2007

" Latin American countries have become less vulnerable than in the past to global slowdowns after strengthening public finances, reducing debt and building reserves, an IMF official said on Saturday.
"The region as a whole has improved ... reduced considerably its vulnerabilities," International Monetary Fund deputy managing director Murilo Portugal told Reuters. "There is a greater resilience now to face external deceleration."
He said many Latin American countries have improved their public finances by reducing debt and substantially increasing international reserves.
A string of weaker-than-expected economic data from the United States has raised concern the economy there may be slowing faster than expected, and that a subprime mortgage crisis could spread to other parts of the economy.
Draft International Monetary Fund forecasts obtained by Reuters earlier this week showed the international body expected global growth of 4.9 percent this year and next after last year's brisk 5.3 percent.
Economists attribute recent improvements in financial stability in Latin America partly to moves by some countries to replace debt in dollars and euros with debt in their local currencies, reducing risk from foreign exchange swings.
A study presented on Saturday by Inter-American Development Bank Senior Economist Andrew Powell at the regional lender's annual meeting in Guatemala showed issuance of domestic debt in Latin America had steadily increased since the 1990s, especially in small countries with limited access to markets."

India's Trade with Latin America in 2006

India's trade with Latin America and caribbean increased to 9 billion dollars in 2006, up from 6 billion in 2005. Highlights:
Brazil remains as the largest trading partner with 2.4 billion dollars of trade, followed by Mexico 1.8 billion, Chile- 1.6 billion and Argentina- 1.2 billion.

While Brazil is the number one destination for our exports, Chile has become the largest exporter to India .

India's exports were 4 billion dollars. Main destinations:
Brazil 147o million dollars
Mexico 1125 ,,
Colombia 346 ,,
Argentina 288 ,,
Chile 164 ,,
Peru 146 ,,
Venezuela 93 ,,
Guatemala 67 ,,
Ecuador 50 ,,
Uruguay 35 ,,

Imports of India in 2006 were 5 billion dollars, up from 3 billion in 2005
Main sources:

Chile 1489 million dollars
Brazil 937 ,,
Argentina 932 ,,
Venezuela 700 ,,
Mexico 671 ,,
Peru 102 ,,
Colombia 63 ,,
Ecuador 50 ,,
Costa Rica 38 ,,

Trinidad and Tobago Business delegation 12 march

CII hosted a meeting at the Intercontinental Hotel, New Delhi with the first and largest-ever Trinidadian business delegation. It consisted of 21 members and was headed by Minister of Trade and Industry Mr Kenneth Valley.

In my speech I highlighted the new Indian business mindset and the difference with the old India using the example of Trinidad itself. About 170 years ago, Indians went as indentured labourers to work in the sugar plantations of Trinidad because at that time India was poor and was ruled by a Colonial power. Today Indian companies are going to Trinidad to invest, create wealth, add value and provide employment. Mittal Steel has invested 1.5 billion dollars. Essar is investing 1.2 billion dollars in another steel mill. T and T has attracted more Indian investment than Brazil or Mexico!. The delegation which has come to India after visiting the dragon(China) and tiger(Korea) can now see the flying elephant ( India) which has the distinction of being the fastest growing largest free market democracy in the world.

The Head of HR and Admn of Essar Steel Caribbean Ltd Mr Prem Singh talked about the positive experience of his company in making the investment in T and T.

High Commissioner Manideo Persaud highlighted the competitive advantages of T and T for Indian investors.

T and T is the gateway to the Caricom region which is integrating towards a Single Market and Economy. T and T is the richest country in the region and its economy is booming with the high oil and gas prices.

El Salvador business meeting 7 February 2007 at Delhi

CII organised a meeting for the El Salvador Foreign Minister Mr Francisco Lainez and his delegation with Indian business at Habitat on 7 Feb at 1.30 pm.

In my welcome remarks in Spanish, I invited the delegation to look at the opportunities arising from the the emerging New India, which has a new mind-set. Addressing the Indian businessmen, I said Indian exporters should try to get atleast one percent of the total imports of El salvador, which were 7.6 billion dollars in 2006. Our exports in 2006 were 20 million dollars. I spoke about our thrust to open up relations and business with Central America countries. The integration of SICA, the Central American regional group involving infrastructure, electricity grids, railways, roads and logistics open up business opportunities for Indian companies. I advised CII to take a business delegation focussed exclusively on central america.The Government of India is giving a 15 million dollar Line of Credit to promote trade with El Salvador,and is setting up a IT training centre.

The Minister invited the Indian companies for bz and investment. The advantages of El Salvador market he quoted are impressive:
-It is one of the three markets which have an investment grade rating, apart from Chile and Mexico
-interest rate of around 7% is one of the lowest in the whole of latin america
-Government offers sector-specific fiscal incentives.
- There are free trade zones for exports.
- telecom, banking and infrastructure are modern
-FTA with USA, Mexico and being part of SICA gives access to these markets
- Indian companies can look at opportunities in agroindustry, footwear, tourism and call-centres

The meeting was presided over by Harinder Sikka, director of Nicholas Piramal, who is planning to lead a delegation to El Salvador

Mr Shashank Bhagat, the Honorary Consul of El Salvador in Delhi who was also in the dais will promote business and interaction between the two countries.

The Minister was accompanied by a business delegation. Mr Poma CEO of the Poma Group of El Salvador is interested in imports of cars and vehicles from india. Poma Group was the second oldest dealer of Toyota in the world ! Hmmm. The first two markets which imported Toyota cars were El salvador and Taiwan !

Latin American and Caribbean economies continue healthy growth in 2006 and 2007

My optimism about the region's stability and growth are confirmed by the December 2006 report of the Economic Commission for Latin America and Caribbean (ECLAC).
Highlights of the report:

- Growth rate in 2006 was 5.3 %, after 4.5% in 2005 and 5.9% in 2004.. Projection for 2007 is 4.7 %.
- Highest growth Venezuela 10%, Dominican Republic 10%, Argentina 8.5% , Peru 7.2 % and Colombia 6%, Trinidad and Tobago 12%
- Brazil's growth in 2006 was 2.8%, projected 3.5% in 2007
- Mexico growth in 2006 was 4.8% , projection for 2007 is 3.8%
- Gross external debt declined to 633 bn dollars from 656 bn in 2005 and 761 bn in 2004. Brazil's debt was down to 156 bn$ from a high of 226 bn in 1999. Argentinian debt was down to 107 bn $ from 171 bn in 2005. Mexican debt was 130bn$ in 2006 down from 166bn in 1999.
- in 2006 Brazil, Argentina and Uruguay repaid their entire debt to IMF ahead of schedule. The level of debt for the region has come down to just 24% of GDP from 42.4% in 2002.
- Foreign exchange reserves increased by 16 % to 295 billion dollars.
- Total exports increased by 21% to 677 billion dollars, while imports increased by 20% to 574 billion dollars. Trade surplus was 103 billion dollars.
- The region produced a surplus on the balance of payments current account for the fourth consecutive year, an unprecedented performance.
- FDI in the region in 2006 was 34 billion dollars, down from 49 billion in 2005. Mexico got 17 billion followed by Brazil 7 bn, Chile 6.6 bn, Colombia 4 bn, peru 3.5 bn and Ecuador 3 bn.
- Inflation was down to 4.8% in 2006 from 6.1% in 2005. Average inflation in the last ten years is 8.45 %. Highest inflation was in venezuela 15.8% followed by Haiti 11.8%, Argentina 10% and Trinidad and tobago 10%. All other countries had single digit inflation.

delegations from trinidad and tobago and El Salvador march second week

The first- ever and largest delegations from these countries are visiting India for business.
The trinidad delegation consists of 21 businessmen interested in products such as pharma, medical equipments, electrical instruments, agrimachinery, furniture, chemicals. Also interested in joint ventures. delegation is lead by the Minister of Trade and Industry.
CII hosting a meeting and lunch on 12 March at Hotel Intercontinental in Delhi
contact Vidya in CII k.v.vidya@ciionline.org

The delegation will be in Mumbai before delhi
contact Mr Persaud, High Commissioner m.persad@hctt.org

Trindad is the richest country in the Caribbean and an ideal hub for doing business in the region.

The El Salvador delegation is visiting bangalore on 5-6 March and will be in delhi from 6th afternoon to 9th. The delegation has three ministers and a dozen officials. It includes Poma business group which is interested in import of automobiles, autoparts and two wheelers.
CII organising meeting with delegation on wednesday 7 March at their Hqrs
contact Vidya in CII k.v.vidya@ciionline.org
also contact Honorary consul of El Salvador Mr Shashank Bhagat in delhi shashank@bhagatindustries.com

The Indo- LAC pharma conference scheduled for 6-7 March has been postponed to 26-28 April
contact : Raman rodelhi@pharmexcil.com,

TCS inagurates Knowledge Development Centre in Uruguay

TCS has set up a regional training center for Latin America established in the Knowledge Development Center (KDC) which is hosted by the Uruguayan technology lab (LATU). The KDC site, which was inaugurated by Jorge Lepra, the Uruguayan Minister of Industry, Energy and Mining, will also serve as a hub for training needs of local software companies in Uruguay.
The TCS training center will be based in Montevideo, Uruguay and will serve as a training platform to upgrade the technology skills of the firm's employees across Argentina, Brazil, Chile, Colombia, Mexico, Uruguay and other countries in the region.

With increasing demand for IT and BPO services in Latin America, the opportunities for job creation in this sector are immense but the supply of trained manpower could serve as a barrier to growth. "Latin America today is becoming an increasingly important IT services marketplace, with some of the highest projected growth rates over the next five years. It is also rapidly becoming an important hub for global sourcing of IT skills. It is crucial that the proper investments are made in training in technology skills, global client orientation and English language skills. TCS' investment in collaboration with the Uruguayan government could serve as a valuable example of public-private co-operation to meet this growing need," said Bob Welch, Group VP and GM of IDC's Global Services Research.

TCS invests more than 6 percent of its annual revenues in training and development and will bring in experts from across the world to serve as faculty in its Latin America Training Center. The center is also expected to give a boost to the local software industry in Uruguay and help promote technology careers and jobs in the country. "We intend to train over 3,000 employees in the next four years in a wide range of technologies, methodologies, language skills and cultural sensitivity in serving clients from offshore," said Mario Tucci, Vice President of TCS Iberoamerica.

TCS currently runs an extensive Global Delivery Network in Latin America with centers in Uruguay, Brazil, Argentina and Chile serving over 150 clients. The Uruguayan operations, which recently underwent a major expansion, employ over 800 professionals and also provide nearshore services to major US and Europe headquartered clients. "We chose Uruguay as a location for this regional training center due to its geographic centrality, excellent human resources, high quality academic environment and superior cost structure. This center will serve as a backbone to our high growth plans in Latin America by ensuring our human resources in this region are at par with the best in the world," added Gabriel Rozman, President of TCS Iberoamerica.