NATIONAL LEGISLATIVE ASSOCIATION ON PRESCRIPTION DRUG PRICESResolution Opposing the Inclusion of a Pharmaceuticals Chapter in the Trans-PacificPartnership Whereas:
State Medicaid programs provide medicines for over 40 million low income Americans.Other state programs directly purchase medicines for hospitals and clinics. To afford theseprograms, states rely on negotiating strategies that compare therapeutically equivalent drugs andconstruct Preferred Drug Lists to steer patients towards cost effective treatments;
The US-Australia FTA, the proposed US-Korea FTA and statements in the annualSpecial 301 Report include proposals regulating the operation of government pharmaceuticalreimbursement programs in ways that, if applied to Medicaid and other state programs, wouldsignificantly hamper the ability of states to control medicine costs;
Trade Agreements are reciprocal by nature, and state government policies that violate theterms may lead to foreign government retaliation. The federal government may preempt state law thorough international agreements. And proposals to limit the operation of foreign reimbursementprograms are likely to lead to increased foreign pressure to limit similarly operating programs in theU.S.;
State government officials have repeatedly warned federal trade officials againstpromoting policies in international agreements that restrict foreign pharmaceutical reimbursementprograms that operate similarly to those used by State programs, including through Medicaid;
Pharmaceutical reimbursement programs do not regulate trade but rather are a core toolfor the promotion of public health and welfare, and therefore are not appropriate subjects of tradeagreements;
The office of the U.S. Trade Representative is currently negotiating the Trans-PacificPartnership (TPP), a plurilateral trade agreement among eight nations. To date, no negotiating texthas been tabled, but the branded drug lobby has requested the inclusion of a pharmaceutical chapterbased on the provisions found in our trade agreements with Australia and Korea.
Be it therefore resolved
that the National Legislative Association on Prescription Drug Prices(NLARx) urges the U.S. Trade Representative to omit any pharmaceutical reimbursement provisionsfrom the Trans-Pacific Partnership or any future or pending FTA:
Be it further resolved
that NLARx urges trade officials to cease consideration of pharmaceuticalreimbursement programs within the Special 301 annual review of intellectual property practices;
See bit.ly/fNzFeZ for past communiqués (resolutions, letters, testimony, and submissions to trade panels).
Examples of industry lobbying for a pharmaceuticals chapter based on Chapter 5 of the Koera-US Free TradeAgreement include the December 2010 U.S. Business Coalition for TPP letter to USTR(http://bit.ly/i8Eh9L); the
March 11, 2009 Comments to USTR submitted by PhRMA(http://bit.ly/ed89sS).