[Ip-health] U.S. government pushed Korea to drop new drug policy

[heeseob nam]

U.S. government pushed Korea to drop new drug policy
Written by Heeseob Nam (hurips@gmail.com)
July 21, 2006

Alexander Vershbow, U.S. Ambassador to the Republic of Korea, visited
Korean Ministry of Public Health on July 19 and had a meeting with
Korean Minister (Mr. Yoo).  On July 18, Mr. Vershbow requested the
meeting and the purposes of his visit are to deliver U.S. government's
concerns on the drug pricing policy of Korean government.  On May, the
Korean government announced to reform its drug pricing policy of the
national healthcare system by adopting measures to positively list
reimbursable prescription drugs rather than the current "negative
list", which only lists the exclusions. During the second round of the
KORUS FTA, the US negotiators expressed its strong opposition to the
positive list system and refused to attend the Pharmaceutical and
Medical Device Working Group meeting.

Reportedly, Mr. Vershbow strongly argued that the positive list system
should be reconsidered since it would strike a blow to transnational
pharmaceutical companies. After the meeting, Mr. Vershbow told a
pressman that "Very constructive discussion. We both share common
interests in putting FTA talks back on the track. =85 We also believe
that it is important for foreign pharmaceutical companies to have a
playing field in Korean market."

Many Koreans believes this is an intervention of domestic affairs and
pressure upon Korean government to withdraw the introduction of
beneficial new drug policy. Before his trip to the U.S. this weekend,
Mr. Vershbow tried to deliver his government's position to Korean
government on one hand and seek possible ways to get much fruits in
the FTA negotiations on the other hand.

It is revealed that in the meeting Mr. Vershbow expressed "conditional
acceptance" of the positive list system. Reportedly, he told that if
the Korean government delays the implementation of the policy and has
further discussions for the details with the U.S., the positive list
system would be allowed to implement. This double-faced strategy shows
that the intention of the U.S. lies in getting more concessions from
Korean side in the KORUS FTA negotiation, which include stronger
protection of intellectual property rights on pharmaceuticals. Korean
Minister of Public Health showed the possibility of compromise by
saying "If the U.S. brings up reasonable proposals, I would consider
them as faithfully as possible."

According to Korean government's plan, legislation steps will be taken
next week for the implementation of the positive list system.
Official announcements from the Korean government are only focused on
defending the positive list system without mentioning anything about
another key issues that would be impaired by the compromise.

* For Korean NGO Statement on the positive list system and negotiation
of 2nd round of the KORUS FTA, refer to
http://www.bilaterals.org/article.php3?id_article=3D5313

** For an official speech of Mr. Vershbow on the KORUS FTA, refer to
http://korea.usembassy.gov/the_korus_fta.html

--
HeeSeob Nam
IPLeft (www.ipleft.or.kr)
Tel.: +82 2 6050 1621
Mobile: +82 11 470 1180
Fax: +82 2 6050 1700
hurips@gmail.com