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The High Price of “Free” Trade: U.S. Trade Agreements and Access to Medicines

Published online by Cambridge University Press:  01 January 2021

Extract

The United States’ pursuit of increasingly TRIPS-Plus levels of intellectual property protection for medicines in bilateral and regional trade agreements is well recognized. Less so, however, are U.S. efforts through these agreements, to directly influence and constrain the pharmaceutical coverage programs of its trading partners. The pursuit of increasing levels of intellectual property (IP) protection in successive bilateral and regional trade agreements has been driven, at least in part, by a U.S. desire to achieve standards of protection it anticipated from the TRIPS Agreement, but failed to secure. Despite the conclusion of a global agreement on IP standards that would establish significant protections in countries that had hitherto declined them, the U.S. pharmaceutical industry viewed TRIPS as falling well short of its objectives — particularly in light of the delayed introduction of patent protection in countries that are key suppliers of generic medicines, such as India.

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Symposium
Copyright
Copyright © American Society of Law, Medicine and Ethics 2013

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A current example is a $300 million action by French pharmaceutical company Servier against the Polish government – while details of the case are scant, it appears to relate to the review of medicines by regulatory bodies in the process of Poland's accession to the EU. See Peterson, L. E., “France's Second Largest Pharmaceutical Company Quietly Pursues Arbitration against Republic of Poland,” Investment Arbitration Reporter, August 19, 2011, available at <http://www.iareporter.com/articles/20110819_9> (last visited April 30, 2012; subscribers only). Other health-related ISDS cases have involved pharmaceutical regulation and drug patents (e.g., Signa v. Canada, Apotex v. USA), health care services (e.g., Centurion Health v Canada) and a range of environmental health issues such as potable water, food contamination, pesticides, and other environmental health contaminants. See International Investment Arbitration and Public Policy website, available at <http://www.iiapp.org/> (last visited February 20, 2013). Eli Lilly has also indicated its intention to commence investor-state action against the Canadian Government for invalidating a drug patent – see Public Citizen, Fact Sheet: U.S. Pharmaceutical Corporation Uses NAFTA Foreign Investor Privileges Regime to Attack Canada's Medicine Patent Policy, Demand $100 Million for Denial of a Patent (Washington, D.C.: Public Citizen, 2013).Google Scholar
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