<h1>India and EU Agree on Safe Transit of Generic Drugs, Avoid WTO Dispute Over EC Regulation 1383/2003.</h1> India and the European Union (EU) reached an agreement to prevent the detention of Indian generic medicines transiting through EU territories. This resolution followed India's initiation of dispute settlement consultations at the World Trade Organization (WTO) in May 2010, after EU customs detained Indian drugs under EC Regulation 1383/2003, suspecting intellectual property rights infringements. The EU acknowledged misinterpretations of the regulation and agreed to issue guidelines and propose a new regulation reflecting the understanding that transit alone does not justify patent infringement suspicions. India agreed not to pursue a WTO dispute panel as long as the EU adheres to this understanding.