Why the Trans Pacific Partnership Should Not Include Pharmaceutical Pricing Provisions

Multinational pharmaceutical companies are lobbying for pharmaceutical pricing provisions in the Trans Pacific Partnership (TPP) modeled after Chapter 5 of the Korea-US FTA and Annex 2(c) of the Australia FTA.  Both the Pharmaceutical Research and Manufacturers of America and the U.S. Business Coalition for TPP have asked the U.S. Trade Representative for a separate chapter that would establish a framework of rules for pharmaceutical price negotiations that favor branded firms over governmental health authorities, inevitably leading to higher prices paid by public health agencies for medicines. TPP negotiators should not include these types of pharmaceutical provisions, which targets price regulation as a barrier to trade, would handicap governmental health authorities, and ultimately raise health costs.