CAFTA Will Delay Competition from Generic Medicines; Encourage High Drug Costs
May 06, 2005
According to testimony given to the House Ways and Means Committe by the Center for Policy Analysis on Trade and Health (CPATH), CAFTA will encourage high drug costs and prohibit access to generic drugs for millions in the CAFTA countries. The testimony is avaiable online, as well as a memo explaining how the CAFTA "side letter" does not protect access to medicines.
The summary of the testimony states:
The Intellectual Property (IP) provisions of the Dominican Republic - Central America Free Trade Agreement (CAFTA) would delay competition from generic medicines, helping to prop up high prices for brand name pharmaceuticals in the U.S., and effectively denying access to life-saving drugs in some of the poorest nations in the Americas. CAFTA IP provisions that would discourage generic competition include extended terms for patents and for data exclusivity, and linkage, which are further discussed below. They also present barriers to compulsory licensing.
These provisions contradict Congress' objectives in the Trade Act of 2002 to balance its interest in strengthening intellectual property rules with its interest in assuring access to affordable drugs. They reflect the published views of the U.S. Trade Representative's Advisory Committee on Intellectual Property Rights. Seven of 15 members of this Committee are affiliated with the pharmaceutical industry. There are no representatives of organizations concerned with the effects of trade on health.