# \[e-drug\] Two papers on the AUSFTA & PBS in eMJA **URL:** https://talk.edrugplus.org/t/e-drug-two-papers-on-the-ausfta-pbs-in-emja/20186 **Category:** e-drug **Created:** [July 26, 2004, 12:21am UTC](https://talk.edrugplus.org/t/e-drug-two-papers-on-the-ausfta-pbs-in-emja/20186 "2004-07-26T00:21:33Z") **Posts on this page:** 1 **Page:** 1
### Author: ![Dr\_Ken\_Harvey](https://avatars.discourse-cdn.com/v4/letter/d/e47c2d/32.png) [@Dr\_Ken\_Harvey](https://talk.edrugplus.org/u/Dr_Ken_Harvey) #### Post date: [July 26, 2004, 12:21am UTC](https://talk.edrugplus.org/t/e-drug-two-papers-on-the-ausfta-pbs-in-emja/20186/1 "2004-07-26T00:21:33Z")
E-drug: Two papers on the AUSFTA & PBS in eMJA --------------------------------------------- eMJA rapid online publication 25 July 2004 MJA 2004; 181 (5) : 1-2 For Debate: 1. Will the Australia�-United States Free Trade Agreement undermine the Pharmaceutical Benefits Scheme? by Ken J Harvey, Thomas A Faunce, Buddhima Lokuge and Peter Drahos [http://www.mja.com.au/public/rop/ausfta/har10408\_fm.html](http://www.mja.com.au/public/rop/ausfta/har10408_fm.html) eMJA rapid online publication 25 July 2004 Introduction Is Australia paying its way with pharmaceutical R&D? Seven AUSFTA provisions that impact on the PBS   1. Interpretive principles   2. Transparency provisions   3. Medicines Working Group   4. Disseminating information via the Internet   5. Adjustment to PBS prices   6. Intellectual property provisions   7. Dispute resolution Abstract The Australia-United States Free Trade Agreement (AUSFTA) contains major concessions to the US pharmaceutical industry that may undermine the egalitarian principles and operation of the Pharmaceutical Benefits Scheme (PBS) and substantially increase the costs of medicinal drugs to Australian consumers. AUSFTA's approach to the PBS excessively emphasises the need to reward manufacturers of "innovative" new pharmaceuticals, instead of emphasising consumers' need for equitable and affordable access to necessary medicines (the first principle of our National Medicines Policy). Several features of AUSFTA may bring pressure to bear on the Pharmaceutical Benefits Advisory Committee (PBAC) to list "innovative" drugs that the committee initially rejected because the evidence for cost-effectiveness was not compelling. Intellectual property provisions of AUSFTA are likely to delay the entry of PBS cost-reducing generic products when pharmaceutical patents expire. We support the many concerned health and consumer organisations who have asked the Senate either not to pass the enabling legislation, or to delay its passage until a fairer deal in terms of public health can be obtained. In January 2003, the Pharmaceutical Research and Manufacturers of America lobbied the US negotiators for the Free Trade Agreement with Australia (AUSFTA) to seek a commitment from the Australian government to "refrain from trade distorting, abusive, or discriminatory price controls" in relation to the operation of its Pharmaceutical Benefits Scheme (PBS). 1In October 2003, President George Bush allegedly told Prime Minister John Howard that raising Australian prices for pharmaceuticals manufactured in the United States was important for ensuring that consumers in all countries, not just US consumers, paid for the high research and development (R&D) costs. 2AUSFTA was signed by both governments in May 2004. If we presume at least some of this rhetoric influenced the provisions of AUSFTA, what implications will these provisions have for our PBS? 2. Free trade in pharmaceuticals by M Kevin Outterson [http://www.mja.com.au/public/rop/ausfta/out10366\_fm.html](http://www.mja.com.au/public/rop/ausfta/out10366_fm.html) Look behind the transparency curtain Prescribe large grains of salt with government pronouncements Abstract Provisions in the Australia-United States Free Trade Agreement (AUSFTA) may threaten the Australian Pharmaceutical Benefits Scheme (PBS), the gold standard of such programs worldwide. If Australia postpones passing of the US Free Trade Agreement Implementation Bill in the Senate, there will be opportunity for broader interests in both the United States and Australia to carefully study the agreement. The provisions of AUSFTA relating to the PBS are supposed to promote transparency, but the pharmaceutical manufacturers themselves (who are demanding transparency) do not reveal the content of their submissions to the Pharmaceutical Benefits Advisory Committee, or disclose all their financial relationships with researchers and policymakers. In AUSFTA, the "public health" language of affordable prescription drugs is missing and is replaced by language supporting "pharmaceutical innovation". Debate as to whether AUSFTA will force significant changes to the PBS, including higher drug prices, is currently under way in Australia. Perhaps the appropriate target of reforms should be the excessive US drug prices, and not the economically efficient Australian drug prices. -- Dr. Ken Harvey Senior Lecturer School of Public Health, La Trobe University Bundoora, 3086, Australia Telephone +61 3 9479 1750 Facsimile +61 3 9479 1783 Mobile 0419 181910 e-mail: k.harvey@latrobe.edu.au -- To send a message to E-Drug, write to: e-drug@healthnet.org To subscribe or unsubscribe, write to: majordomo@healthnet.org in the body of the message type: subscribe e-drug OR unsubscribe e-drug To contact a person, send a message to: e-drug-help@healthnet.org Information and archives: [http://www.essentialdrugs.org/edrug](http://www.essentialdrugs.org/edrug)