Potential conflict between TRIPS and GATT concerning parallel importation of drugs and possible solution to prevent...

From international perspective, parallel importation, especially with respect to drugs, has to do with the exhaustion principle in Article 6 of the TRIPS Agreement and the general exception in Article XX of the GATT 1994. Issues concerning the TRIPS Agreement have been constant topics of discussion. However, parallel importation in relation to the general rules of the GATT 1994 as well as to its exceptions provided in Article XX was not seriously discussed. In the view of the paper, there is a conflict between the provisions in these two agreements. The paper explains such conflict and tries to propose a method of interpretation to resolve the conflict between GATT Article XX and TRIPS Article 6 concerning parallel importation for the purpose of reducing the possible undesirable market segmentation in pharmaceutical sector. The method suggested in the paper is a proper application of good faith principle in the Vienna Convention to interpret GATT Article XX, so that there could be some flexibility for those prohibitions of parallel importation which have positive effect on international trade.