[Ip-health] Rep. Allen statement on US-AU FTA

[Mike Palmedo]

http://www.tomallen.house.gov/showart.asp?issueID=3D0&contentID=3D1361

Washington, D.C.=97U.S. Representative Tom Allen made the following
statement during the House debate today on the proposed U.S.-Australia
Free Trade Agreement:

"I rise in support of the U.S.-Australia Free Trade Agreement, but with
strong reservations about the pharmaceutical provisions.

"On balance, the Agreement will benefit consumers and businesses in both
countries by lowering barriers to trade in goods and services. However,
the Administration has included provisions, sought by the drug industry,
that could raise barriers to free trade in pharmaceuticals.

My concerns are as follows:

"First, one provision gives drug companies the right to block
re-importation of their products into the U.S. Since Australian law
already prohibits this practice, the provision is not necessary. So why
is it here? To set a precedent.

"If applied to trade relations with Canada, this provision would allow
legal challenges, under trade law, to the re-importation bill that many
of us favor as a source of affordable medicines for our constituents.

"The intent of the Bush Administration is clear: USTR has testified that
the pharmaceutical provisions in the Australia FTA =91lay the groundwork
for future FTAs,=92 and will be applied to =91upcoming FTA negotiations =85
with Canada and other major trading partners.=92

"Second, the FTA opens up Medicare for potential changes. While USTR
says no changes to existing Medicare law are needed under this
agreement, we should all be concerned about the precedent of subjecting
our domestic health laws to modification through trade negotiations,
where Congress has less say and the pharmaceutical industry has more
influence.

"Lastly, it is not appropriate to use trade policy to interfere in other
nations=92 health systems. The Administration is working to use trade
pacts to raise drug prices overseas under the grand illusion that will
reduce prices here at home. The United States will win no friends if our
trade policy becomes a heavy-handed tool to raise drug prices on the
citizens of our trading partners.

"I support the Australian FTA. This Agreement by itself will have little
or no impact on U.S. health care laws. But I want to make clear that
similar provisions must be kept out of future trade agreements."