Robb: TPP trade deal “within weeks”

Advertisement

By Leith van Onselen

Trade Minister, Andrew Robb, has declared that negotiations for the Trans-Pacific Partnership (TPP) trade agreement – US-led regional trade pact between 12 nations (including Australia) – are on the cusp of being concluded and the deal could be signed within weeks. From The SMH:

Mr Robb and other close observers have told Fairfax that negotiators are poised to strike a ground-breaking deal which would bring huge economic benefits to Australia and mark a major strategic win for the United States, as it wrestles with China for regional leadership.

But thankfully for those of us opposed to the TPP, US Democratic senator, Elizabeth Warren, is attempting to scuttle the deal by persuading Congress to baulk at giving the Obama administration the fast-track authority, which would allow the President to sign the agreement on the country’s behalf and disallow Congress from making any changes (they would only be allowed to vote “yes” or “no” to the package):

“If she comes out and takes issue with key elements of the TPP then it becomes potentially a presidential campaign-type issue and it might mean that insufficient Democrats line up [in Congress],” said Mr Robb. “It is at a make-or-break point: the next month or so.”

Advertisement

Robb has also played-down concerns that the TPP would raise Australian health care costs by, among other things, lengthening (and strengthening) patent protection on pharmaceuticals:

“We’re not going to accept any outcome which would adversely affect our health system, end of story,” said Mr Robb. “I’ve got a very clear mandate to that end.”

Personally, I don’t believe Mr Robb. The Howard Government had no trouble signing Australia up to the US FTA, which has been found to have provided Australia with minimal market access gains, whilst extending patent and copyright terms (at the insistence of the US), increasing costs for Australian consumers.

Advertisement

Indeed, according to Peter Martin, the extension of pharmaceutical patents under the Australia-US FTA, from 14 years to 20 years, has “suppressed the development of a generic drugs industry and cost the government $200 million per year by slowing the entry of cheap generic drugs into the pharmaceutical benefits scheme”. Moreover, “generic manufacturers have missed out on an estimated $2 billion over eight years” whereas “70 per cent of drug patents expire later in Australia than in other countries”.

There are sound reasons why Australians should be very concerned about the TPP, which I have explained previously (see here).

It’s time to push back.

Advertisement

[email protected]

About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.