Brazil’s President Luiz Inacio Lula da Silva is squaring off with international pharmaceutical companies over the price of AIDS drugs. On Friday, Lula signed a decree authorizing the Brazilian government to begin manufacturing or importing generic versions of the drug Efavirenz made by Merck. Lula said it is unethical to charge high prices for drugs of such importance.

Luiz Inacio Lula da Silva: “We want prices that are fair not only for us, but for all infected human beings on Earth. We have to make this decision. After all, between our trade and our health, we’ll take care of our health.”

Merck criticized Brazil’s move, saying it was an expropriation of intellectual property. Thailand recently issued a similar decree over a drug made by the U.S. company Abbott Laboratories. Abbott responded by refusing to sell seven new drugs in the Thai market — a move that was condemned by AIDS activists and within the medical community.