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House Caucus on Intellectual Property Event:
Intellectual Property and Trade – The Case of Jordan

On Wednesday, February 16, 2005, the House Caucus on Intellectual Property hosted the luncheon discussion, Intellectual Property and Trade – The Case of Jordan. The event was organized by the International Intellectual Property Institute (IIPI) and was designed to illustrate how developing countries can benefit from increased intellectual property protection; a case study of Jordan, with a special focus on its pharmaceutical industry, was presented as evidence that world class intellectual property rights can help local industry.

Jordan joined the World Trade Organization in 1999 and signed the U.S.-Jordan Free Trade Agreement in 2001. Both these trade agreements required Jordan to update its intellectual property laws and improve intellectual property enforcement. At the time, many believed that stronger intellectual property protections in the country would harm economic growth. The local pharmaceutical industry in particular was wary of the increased intellectual property protections and felt their industry would be adversely impacted. However, evidence shows that becoming part of the global trading community and the adoption of strong intellectual property protections has come to benefit Jordan.

The luncheon event began with opening remarks from House Intellectual Property Caucus Co-Chair Tom Feeney (R-FL). Representative Feeney welcomed 65 attendees and thanked his fellow Co-Chairs, Adam Smith (D-WA) and Robert Wexler (D-FL) for attending. After lunch was served, IIPI Project Attorney Eric Garduño introduced the luncheon speakers; Dr. Michael P. Ryan, Professor at Georgetown’s McDonough’s School of Business, Karim Kawar, Jordan’s Ambassador to the United States and Catherine Novelli, Assistant United States Trade Representative for Europe and the Mediterranean.

Professor Ryan, who is also a member of IIPI’s International Board of Advisors, began the discussion by reviewing his findings in a recent report he authored for IIPI, Establishing Globally Competitive Pharmaceutical and Bio-medical Technology Industries in Jordan. According to Professor Ryan’s research, the intellectual property laws Jordan adopted have led to the growth of Jordan’s contract clinical research sector and have spurred a new focus on research-based innovation for Jordanian pharmaceutical companies. For example, Professor Ryan pointed out that Jordan’s Triumpharma and Advanced Pharmaceuticals are both investing in research to produce patent worthy drug delivery mechanisms.

Ambassador Kawar’s presentation further confirmed that Jordanian pharmaceutical firms have embraced intellectual property and have changed the way they do business. Instead of the once limited view of focusing on the local market, they have made strides in exporting their products around the world and building licensing relationships with international partners. This is evident in the rise of Jordan’s pharmaceutical exports, which not reach over 60 countries around the globe. In 2001, Jordan’s pharmaceutical exports amounted to $184 million while current figures indicate exports totaled $170 million between January and September 2004, and are projected to total $226 million by year end. Additionally, the Ambassador commented that there has been little to no adverse impact on local pharmaceutical prices, thanks in large part to the increase in competition that has come about due to the greater market access required under the recent trade agreements.

Ms. Novelli, who is the chief U.S. trade negotiator for the region, pointed out that the case of Jordan is a useful example to counter claims that intellectual property rights harm local economic interests in developing countries. Ms. Novelli commented that there has been much misinformation concerning the impact strong intellectual property rights will have on an economy. The fact that Jordan has prospered under an enhanced intellectual property regime does much to alleviate the concerns other countries have when intellectual property rights are brought up in trade negotiations.