What is parallel trade?
Parallel trade refers to the purchase of trademarked or patented goods in one country, and the subsequent export of those goods to another country, without the consent of the patent or trademark owner. The practice of parallel importation is driven by price differences among markets. In many countries, the government fixes the prices at which medicines can be sold or are reimbursed; it is this government interference in free markets that can encourage parallel trade. Parallel imports are generally exported from a low-price market and resold at a higher price in another country. Such parallel trade may result in import/export of counterfeit or sub-standard products. Even where legitimate products are involved, this practice leads to a diversion of medicines from the relatively low-priced market. This process would leave patients in the lower-priced market with fewer medicines and drive up the prices of those that are available; the result is reduced access to medicines for local consume
