[Ip-health] new Oxfam paper on US-Andean FTAs

[Stephanie Weinberg]

Oxfam today released a new paper on the US-Andean FTAs - Song of the Sirens=
: why the US-Andean FTAs undermine sustainable development and regional int=
egration.  It is available at:
http://www.oxfamamerica.org/newsandpublications/publications/briefing_paper=
s/briefing_paper.2006-06-13.7641102806/

MEDIA RELEASE

For information:
Laura Rusu (Washington, DC) 202-496-3620 or 202-459-3739

US-ANDEAN TRADE DEALS WILL HARM DEVELOPING COUNTRIES

The US is pushing "free trade agreements" (FTAs) with the Andean countries =
of Peru, Colombia and Ecuador that will harm thousands of vulnerable small =
farmers, block access to affordable medicines and favor foreign investors, =
according to a new report released today by international agency Oxfam.

The report, "Song of the Sirens," outlines the negative impacts the propose=
d agreements will have on millions of people in the Andean region. The US i=
s demanding concessions that could affect the sustainability of development=
 policies and weaken the ongoing process of integration with neighboring co=
untries, Oxfam says.

Although negotiations with Ecuador have been temporarily suspended, the agr=
eement with Colombia is awaiting final executive approvals and the Peru agr=
eement, already signed by both countries, will be considered by the Peruvia=
n Congress in the coming days and in the US Congress in the coming months.

"Developing countries have been enchanted by the appeal of free-trade agree=
ments, but, much like the song of the Sirens, this attraction is ultimately=
 self-destructive," said Stephanie Weinberg, trade policy advisor for Oxfam=
. "The benefits that an FTA offers Peru, Colombia and Ecuador will be far o=
utweighed by the negative impacts of agricultural dumping, harsh patent rul=
es and deregulated foreign investments."
=A0
Oxfam believes that the Peru and Colombia agreements on agriculture, intell=
ectual property and investment rules would harm the development of these co=
untries. In agriculture, the agreements would dismantle safeguard mechanism=
s that are vital for food security and the livelihoods of small farmers, wh=
ile making no attempt to address the unfair dumping of American overproduct=
ion.
=A0
"The livelihoods of a quarter of the population of these countries, especia=
lly the poorest in rural areas, depend on agriculture for their livelihoods=
," said Weinberg. "The FTAs pry open the markets of Peru and Colombia witho=
ut any consideration for the damaging effects of dumped, cheap, subsidized =
American products."
=A0
On intellectually property, the US has succeeded in extending pharmaceutica=
l patents beyond 20 years, which goes well beyond agreements made at the Wo=
rld Trade Organization. As a consequence, medicine prices in Peru will incr=
ease by almost 10% in the first year of the FTA and 100% after 10 years, wh=
ile Colombia will have to spend an extra $940 million a year to buy more ex=
pensive medicines and nearly 6 million people there will lose access to med=
icines. The new investment rules in the agreements would also curtail the p=
owers of Andean governments to regulate foreign investment.

"Trade could be the engine to pull millions out of poverty, but the winners=
 of this agreement are American and international companies," said Weinberg=
. "In the Andean countries where half the population lives in poverty, this=
 agreement will actually reduce access to affordable medicines and stifle o=
pportunities for development."
=A0
The US has started concentrating on bilateral agreements because the WTO's =
Doha Development Round is deadlocked and talks on the Free Trade Area of th=
e Americas (FTAA) have stalled. Oxfam says that the US is using these new b=
ilateral deals to force poorer countries to give up a lot more than they wo=
uld at the WTO.

"The US Congress should not approve trade agreements that will harm develop=
ing countries. It should instead encourage developing countries to utilize =
trade as a means of achieving sustainable economic development and poverty =
reduction," said Weinberg. "But with these free trade agreements, the US is=
 locking in unfair trade rules that pull the rug from underneath Peru and C=
olombia."
=A0
/ENDS
=A0
NOTE: Some of the facts discussed in the report:
=A0
* In the Andean region approximately half the population lives in poverty.
* In Peru, nearly 20% of population doesn't have access to medical care; in=
 Colombia it's 45%.
* Almost a quarter of the Andean population depends on agriculture for thei=
r livelihood (22% in Peru, 23% in Colombia, 30% in Ecuador).
* WTO "TRIPS plus" measures include extending the patent beyond the 20 year=
s agreed at WTO and prohibiting the use of clinical data to produce generic=
s for at least five years, even after the patent has expired.
* Medicine prices in Peru could rise by almost 10% within the first year of=
 the FTA implementation, 100% in 10 years and 162% in 18 years.
* Colombia's health system will have to spend an extra $940 million a year =
to cover the cost of medicines after the implementation of the agreements; =
nearly 6 million people will not have access to medicines, of whom 4,440 HI=
V patients will not be able to afford treatment.
* Twenty-five thousand US cotton producers get $3.5 million in subsidies a =
year; 28 thousand Peruvian cotton producers get nothing.
* Cotton production in Peru fell from 260,000 hectares in 1960 to 89,000 he=
ctares in 2004, a 75% drop.
* 1,700,000 families in Peru alone depend on agriculture to make a living.