[Ip-health] GOP Senators' IP/Pharma Concerns Cast Pall On Peru

[robert weissman]

Congress Daily AM =96 September 19, 2007

GOP Senators' Concerns Cast Pall On Peru

     Incensed that the Bush administration agreed to relax intellectual
property protections in bilateral trade deals, several Senate Finance
Committee members led by Sen.* Orrin Hatch*, R-Utah, have told lobbyists
they might vote against the U.S.-Peru trade deal.
      The Finance panel will hold a nonbinding markup of the draft Peru
agreement Thursday,* Finance Chairman Baucus* announced. While the Peru
pact is not in any danger of not passing the committee, supporters said
the threats by GOP senators to vote against it are troubling because
they would exacerbate steadily declining support in the Senate for trade
deals in recent years.
      Hatch's criticism of the Peru deal centers mostly on intellectual
property provisions that drug companies say they rely on to be able to
offer innovative medicines to people in poor countries like Peru.
      But in their agreement earlier this year that set the stage for
Congress to consider Peru and other trade deals, the administration
agreed to several changes demanded by Democrats.
      Those included limits on drug manufacturers' exclusive rights to
clinical test data that is needed for regulatory approval of drugs and
more explicit language ensuring developing countries can break patents
to address health emergencies, as agreed to in the Doha Round.
      Hatch and five other Finance Committee members complained to Trade
Representative Schwab about the proposed intellectual property rights
changes in a May 24 letter -- days after she announced the framework of
an agreement with Democrats. The letter has previously not been made public=
.
      "Given that intellectual property, as a financial sector, is one of
the United States' largest exports, we cannot understand why the United
States would signal to our trading partners a willingness to weaken
unilaterally our IPR laws," the GOP senators wrote.
      They also criticized labor and environmental provisions in the
administration-Democratic leadership deal.
      "From our perspective, it does not make sense to undertake major
renegotiations of trade agreements under these terms," according to the
letter signed by Hatch, Sens.* Mike Crapo*, R-Idaho,* Jim Bunning*,
R-Ky.,* Pat Roberts*, R-Kan.,* Jon Kyl*, R-Ariz., and the late Sen.*
Craig Thomas*, R-Wyo.
      Finance ranking member* Charles Grassley*, R-Iowa, told/
CongressDaily/ he was surprised in recent days to learn that two GOP
senators -- who he declined to identify by name -- he normally relies on
to support trade deals were considering opposing the Peru deal.
      If those senators are hoping to win assurances that the changes on
IPR will not be included in other trade agreements with Panama and
Colombia, Grassley said, they are too late. "Except for Korea, the
negotiations are done," he said.
      Business lobbyists working the Peru deal also said they could not
see what Hatch hopes to gain by his stand. "The train has left the
station on this," one lobbyist said.
      Hatch could lodge a protest vote to signal that his support for
future trade agreements will depend on changing the IPR and medicine
provisions. Calls to Hatch's office seeking comment were not returned.
      But it is unclear whether, if Hatch ultimately votes no, he will
take any of his Senate Finance GOP colleagues with him.
      Bunning, Crapo and Kyl told/ CongressDaily/ Tuesday they are
leaning toward support for the deal; Kyl and Crapo said they were hoping
for some improvements to the pharmaceutical provisions.
      "I really want to vote for it . . . I'm leaning yes," said Crapo.
      The panel should approve the bill in an informal markup Thursday by
a margin of several votes. In addition to the Republicans mentioned,
Sen.* Olympia Snowe*, R-Maine., is undecided.
      On the Democratic side, Sens.* Debbie Stabenow* of Michigan, and*
John (Jay) Rockefeller* of West Virginia are likely 'no' votes, while
Sens.* Kent Conrad* of North Dakota and* Charles Schumer* of New York
are question marks, sources said.
      The level of GOP support in the full Senate could determine whether
the Peru bill hits a low-water mark for trade votes in this decade.
      A majority of the eight Senate Democratic freshmen are expected to
vote against the pact.
      House Ways and Means is expected to follow suit with its mock
markup Tuesday. That would pave the way for the White House to send up a
final bill text, setting up House and Senate floor votes in October.
    /By Martin Vaughan
/
  <http://nationaljournal.com/pubs/congressdaily/am070919.htm>