[Ip-health] GPhA Applauds House Passage of U.S.-Peru Free Trade Agreement

[Mike Palmedo]

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Contact: Andrea Hofelich/703-647-2495

GPhA Applauds House Passage of U.S.-Peru Free Trade Agreement

ARLINGTON, VA, November 8, 2007-- The Generic Pharmaceutical Association
(GPhA) today praised the House of Representatives for its strong
bipartisan approval of the U.S.-Peru Free Trade Agreement, which proves
that our nation=92s free trade agreements can foster innovation while also
ensuring that our trading partners have access to safe and affordable
medicines.

=93This free trade agreement recognizes that bringing competition into the
pharmaceutical marketplace results in lower consumer costs without
stifling innovation,=94 said GPhA President and CEO Kathleen Jaeger. =93In
the U.S., as generic competition has grown, so has investment by brand
companies in new drug development, with new blockbuster drugs regularly
coming to market. Today=92s vote sends a strong message that our free
trade agreements should reflect the balance between access and
innovation that our domestic market has achieved.

=93We applaud House Ways and Means Committee Chairman Charles Rangel
(D-NY), Ranking Member Jim McCrery (R-LA), House Ways and Means Trade
Subcommittee Chairman Sander Levin (D-MI), and U.S. Representative Henry
Waxman (D-CA) for their leadership roles in promoting passage of this
balanced free trade agreement.=94

Earlier this year, Congressional Democrats and the Bush Administration
negotiated substantial improvements to pharmaceutical-related provisions
in free trade agreements, which are reflected in the Peru agreement
approved today. Under the Peru agreement, patent extensions for brand
pharmaceutical products are not mandatory; patent disputes will be
resolved through the legal system, instead of through the drug approval
process; and generic medicines should become available in Peru no later
than they are available in the United States. Previously, some trade
agreements had exceeded U.S. law and World Trade Organization
commitments by providing for an unlimited number of patent extensions
for brand products and other measures that could unnecessarily delay
generic competition in our trade partners.

Finally, there is an obligation in the trade agreement text that clearly
states Peru may take measures to protect public health in accordance
with the World Trade Organization Declaration on TRIPS and Public Health.

=93This trade agreement succeeds in promoting competition, which is good
for consumers here and abroad and good for a strong, vibrant
pharmaceutical industry,=94 said Jaeger.

GPhA represents the manufacturers and distributors of finished generic
pharmaceuticals, manufacturers and distributors of bulk active
pharmaceutical chemicals, and suppliers of other goods and services to
the generic drug industry. Generics represent 63% of the total
prescriptions dispensed in the United States, but only 20% of all
dollars spent on prescription drugs.

--
Mike Palmedo
Research Coordinator
Program on Information Justice and Intellectual Property
American University, Washington College of Law
4910 Massachutsetts Ave., NW Washington, DC 20016
T - 202-274-4442 | F 202-274-0659
mpalmedo@wcl.american.edu