[Ip-health] Q & A with US trade negotiator for US-Australia FTA

[Mike Palmedo]

http://www.ustr.gov/new/fta/Australia/2003-03-21-pc-transcript.PDF

Friday, 21 March 2003

Media briefing on the first round (17-21 March) of Free Trade Agreement

negotiations between Australia and the United States.

Briefing conducted by Australia's chief negotiator Stephen Deady and the
United

States' chief negotiator Ralph Ives.


<snip>

QUESTION:

Was the pharmaceutical benefits scheme discussed? What was your impression
of

that discussion?

RALPH IVES:

I think we discussed it only very briefly just to get an idea of what it is.
We became

very aware of the importance of the PBS to Australia. What we are stressing
is that

we are in no way going after the PBS. We are genuinely seeking: how does it

operate; could it be perhaps a bit more transparent in its operation; what
are the

procedures? We understand the strong feelings by Australia towards the PBS.
That is

not part of the agenda.

QUESTION:

Not part of the agenda at all or part of the agenda in terms of maybe some
questioning

of methodologies, processes? It is a very complex scheme obviously.

RALPH IVES:

It is a very complex scheme, and we are only at the beginning of
understanding it. So

there may be additional questions we have looking at transparency and how
does the

system operate. But we are certainly not, as some reports have indicated,
going after

the PBS.

QUESTION:

Can I just clarify that when you say PBS is not going to be part of the free
trade deal?

RALPH IVES:

Again, we are looking at how does it operate and we are just beginning that
process.

QUESTION:

You just said earlier it is not part of the agenda. I want to get it exactly
right. Is it off

or on?

RALPH IVES:

It is not a black or white issue. We are still examining it. But I wanted to
be very

clear is that the fundamental way the PBS delivers medicine to Australians,
we are not

looking at that.

QUESTION:

Your PHARMA, the American pharmaceutical manufacturers association, said
that

the PBS amounts to nearly $900 million government subsidy from the companies
to

drug buyers. Surely that is something you would be under pressure to deliver

something on for industry?

RALPH IVES:

At this point, we are very much in a fact-finding mode and we have to do it
from both

sides, from the Australian side and from the PHARMA side. I will take the

information we got here and go back to PHARMA and we will see where we go.

<snip>