Another day, another warning about how the Trans-Pacific Partnership (TPP) trade agreement will force-up pharmaceutical prices, raising costs for consumers and taxpayers in signatory countries (including Australia). From John Brinkley, a US trade expert, writing at Forbes:
Whatever Pharma Wants, Pharma Gets
The governments of several TPP countries are incensed at the U.S. government’s insistence on protecting American drug patents against encroachment by generics. They say the Obama administration is putting the profits of the American pharmaceutical industry ahead of the protection of public health – a claim that’s hard to refute.
Politico reported last week that a leaked copy of the TPP’s intellectual property chapter included a provision restricting foreign governments’ rights to approve generic drugs that copy American brands. According to Politico, the provision would allow American pharmaceutical companies to claim patent infringement at the drop of a hat.
U.S. patent law allows for copies of all manner of patented consumer products – watches, musical instruments, computer software and many others – under certain circumstances, with one exception: prescription drugs. Now, the Obama administration is trying to force that regime on the 11 other TPP countries…
The pharmaceutical industry says rigid enforcement of its patents is necessary to recoup the high cost of developing new drugs and getting them through the government-approval process. But they spend more on 60-second TV commercials and lavishing doctors with money and largesse than on R&D.
In its fact sheet on the TPP, released last month, the Department of Foreign Affairs and Trade (DFAT) claimed that the Australian Government would not accept an outcome in the TPP that increased the price of medicines for Australians or put at risk the Pharmaceutical Benefits Scheme:
The Government is negotiating intellectual property provisions in the TPP within the framework of Australia’s existing laws and policies and does not support any proposals that would require changes to Australia’s current intellectual property arrangements, including our copyright and enforcement regimes…
The Government has stated clearly that it will not accept an outcome in the TPP which adversely affects the Pharmaceutical Benefits Scheme or our health system more generally, or an outcome that increases the price of medicines for Australians.
Given stronger patents for pharmaceuticals is central to the US’ participation in the agreement, DFAT’s assurance must then mean that Australia will walk away from the deal. Either that or DFAT is not telling the truth. I’ll let you decide.
As an aside, the below cartoon nicely encapsulates the free trade credentials of the TPP:
That’s right. The agreement has little to do with “free trade” and everything to do with asserting US dominance over the global trading system and advancing the interests of US pharmaceutical and creative industries.
