[Ip-health] Australia: Labor warns it may block trade deal

[robert.weissman@essentialinformation.org]

By Tim Colebatch, Marian Wilkinson, Washington
The Age
May 20, 2004

Labor may block the free trade agreement with the United States because
of changes to the Pharmaceutical Benefits Scheme, the party warned
yesterday.
With the US Congress expected to approve the agreement in July, and the
Australian Democrats and Greens committed to voting against it, it will
be up to Labor to determine whether the Howard Government's biggest
trade initiative becomes law.
Trade experts expect Labor ultimately to endorse the pact, but
Opposition trade spokesman Stephen Conroy said the party was still
uncommitted, with concerns about costs to the PBS, quarantine laws and
the film, TV and internet industries.
The trade deal could face another barrier after a spokeswoman for US
Democrat presidential candidate John Kerry said he had yet to decide
whether he would support it.
A group of experts on pharmaceutical policy, including two former
members of the Pharmaceutical Benefits Advisory Committee, warned
yesterday that changes to appease US drug companies could lift the cost
of the scheme to taxpayers by 30 per cent, or $1.5 billion a year.
"The text of the agreement is unbalanced and most of the measures
increase the pricing power of US drug companies operating in Australia,"

the group said in a submission to the Senate committee examining the
deal.
"It is inconceivable, based on past practice, that they will not use
that new pricing power."
Senator Conroy said senior officials this week were unable to explain to

the Senate committee how the new pharmaceutical review system would
work.
"There is still no decision on the structure and composition of the
review process," he said.
"This is a make-or-break issue for us. We believe we have the world's
best system and nothing in the trade deal should be allowed to undermine

it."
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See also:
http://www.theage.com.au/articles/2004/05/19/1084917650450.html
http://www.smh.com.au/articles/2004/05/19/1084917656305.html
http://www.econ.usyd.edu.au/drawingboard/digest/0403/harvey.html