United States, Australia lock horns over cheaper drugs

IT’S been hailed as a groundbreaking deal that could boost global trade. But an argument between the United States and Australia could see it all scuttled.

Leaders lock horns over cheaper drugs

TALKS on the ambitious Pacific free-trade treaty were extended again to Monday as they remained bogged down in differences on the dairy trade and biologic patent protections.

A US trade official said plans for a press conference expected to announce a deal on the 12-nation talks late Sunday were cancelled, though he gave no reason.

Previously, Japan’s Economy Minister Akira Amari said he was expecting a deal “in principle” to be announced Sunday afternoon.

Amari told Japanese journalists that there had been “major progress” Sunday morning and that a solution had been found to the main roadblock to a deal, how to protect developers of biologic drugs, which saw the United States and Australia sharply divided on the issue.

Earlier, it appeared the US and Australia had reached a compromise on biologic drugs (which are complex drugs which includes gene therapy and vaccines). The US wanted a 12-year exclusivity period, which meant only the developer of the drug could produce the biologic for that period, locking out competitors from manufacturing a cheaper generic version. Australia wanted a five-year exclusivity period.

Trade ministers and other top officials from the 12 countries have been negotiating around the clock since Wednesday hoping to close the deal on the trans-Pacific Partnership, which would be the world’s largest free-trade zone.

“We are making preparations now to announce a deal in principle this afternoon,” the Japanese economy minister had said earlier, according to a translation of his remarks supplied by Japanese journalists.

The administration of President Barack Obama, the prime driver behind the TPP, wants it to create a foundation for “21st century trade rules,” setting standards on trade, investment, data flows and intellectual property that eventually non-TPP members — particularly China — will have to accept.