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

Main Category: Pharma Industry / Biotech Industry
Article Date: 09 Nov 2007 - 4:00 PDT

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

"This free trade agreement recognizes that bringing competition into the pharmaceutical marketplace results in lower consumer costs without stifling innovation," said GPhA President and CEO Kathleen Jaeger. "In 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's vote sends a strong message that our free trade agreements should reflect the balance between access and innovation that our domestic market has achieved.

"We 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."

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.

"This trade agreement succeeds in promoting competition, which is good for consumers here and abroad and good for a strong, vibrant pharmaceutical industry," 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.

http://www.gphaonline.org

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