[Ip-health] Senate Effort to Block USTR from Banning Reimportation through FTAs

[robert weissman]

Senator Debbie Stabenow has successfully introduced language in the
appropriations bill covering USTR that would forbid the agency from
negotiating trade deals that contain language restricting drug
reimportation like that in the Australian, Singapore and Moroccan free
trade agreements.

There may be issues about the exact language in the amendment (text is
below the following press release); and time will tell whether the
amendment will survive conference or an omnibus appropriations bill. But
this is certainly a significant step forward in Congress asserting
authority over USTR's efforts to negotiate trade deals that harm
consumers' interests regarding pharmaceuticals, as well as tying
Congress' hands regarding future legislation.

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FOR IMMEDIATE RELEASE
Sept. 14, 2005


Contact: Bob Meissner
Phone: 202-224-4822


Stabenow Wins Senate Support to Keep U.S. Treaties Free of Bans against
Reimportation of Prescription Drugs

WASHINGTON=97 In response to back-door efforts by the U.S. pharmaceutical
industry to block reimportation of prescription drugs through trade
agreements, U.S. Senator Debbie Stabenow (D-MI) co-authored bipartisan
legislation that would keep such reimportation bans out of future trade
deals. The U.S. Senate endorsed Stabenow=92s effort today by unanimously
accepting her proposal as an amendment to the fiscal year 2006
Commerce-Justice-Science appropriations bill.

=93A growing number of my colleagues in both the U.S. House and Senate now
agree with me that we must make prescription drugs more affordable for
Americans by allowing reimportation of safe, FDA-approved drugs,=94
Stabenow said. =93Unfortunately, the industry recognizes that Congress
will allow reimportation, and it has worked closely with our trade
negotiators to write these special interest provisions into new U.S.
trade agreements.

=93These trade deals are designed to keep Americans from having access to
safe, less expensive prescription drugs, and in some cases these trade
deals suppress other nations=92 development of generic drugs =96 including
generic drugs that could help us combat the global crisis of HIV/AIDS.

=93We must stop this manipulation of our trade agreements by special
interests, and my legislation would halt this practice,=94 Stabenow said.
=93I am very pleased my colleagues have agreed to this proposal without
dissention or debate.=94

A U.S. Free Trade Agreement with Singapore carrying the reimportation
ban was approved by Congress in 2003, and a similar ban was in the FTA
with Morocco, signed by the two countries in June 2004. Most recently,
an FTA with Australia went into effect in January of this year with the
PhRMA reimportation block in place.

=93Although we are not proposing importing drugs from some of those
nations, these provisions are setting a dangerous precedent, and they
must be removed from the table when the U.S. Trade Representative sits
down to negotiate future trade deals.=94

Stabenow said legislation to allow reimportation remains her goal =96 and
the goal of many members of Congress on both sides of the aisle, but the
industry=92s end run with treaty provisions would make U.S. efforts to
allow reimportation meaningless. =93If the U.S. Trade Representative
continues to insert language into trade agreements that prohibit other
countries from allowing U.S. citizens to reimport prescription drugs,
our work will have been for nothing,=94 she said.

A leader in the fight to allow reimportation, Stabenow=92s first piece of
legislation when she came to the Senate in 2001 would have allowed
reimportation of prescription drugs from Canada.

The amendment to protect free trade and prohibit bans on reimportation
was co-sponsored in the Senate by Senator David Vitter (R-LA), John
McCain (R-AZ), Byron Dorgan (D-ND) and Olympia Snowe (R-ME), among others.

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TEXT OF AMENDMENT

    SA 1688. Ms. STABENOW (for herself, Mr. VITTER, Mr. MCCAIN, Mr.
DORGAN, Mr. DURBIN, Mr. LEVIN, and Mr. SCHUMER) submitted an amendment
intended to be proposed by her to the bill H.R. 2862, making
appropriations for Science, the Departments of State, Justice, and
Commerce, and related agencies for the fiscal year ending September 30,
2006, and for other purposes; which was ordered to lie on the table; as
follows:

     At the appropriate place, insert the following:

     SEC. __. None of the funds made available in this Act may be used
to include in any bilateral or multilateral trade agreement the text of--

     (1) paragraph 2 of article 16.7 of the United States-Singapore Free
Trade Agreement;

     (2) paragraph 4 of article 17.9 of the United States-Australia Free
Trade Agreement; or

     (3) paragraph 4 of article 15.9 of the United States-Morocco Free
Trade Agreement.