HEALTH GAP

GLOBAL ACCESS PROJECT

 

U.S. Free Trade Agreements

&

Access to Life-Saving Medications

 

 

U.S. Free Trade Agreements (FTAs) over the past several years have severely limited access to life-saving medications by blocking generic competition in multiple nations. FTAs have proven to be a windfall to multinational pharmaceutical corporations at the expense of the public health of poor people. Currently, there are FTAs pending with Peru, Panama, Colombia, and Korea which were built on the same damaging model.

 

While the Peru and Panama FTAs were re-negotiated to change some of the provisions designed to bolster pharmaceutical industry profits, they still represent an unnecessary threat to the public health of the citizens of Peru and Panama.

 

 

* The FTAs extend the patent monopoly on medicines, protecting brand name pharmaceuticals from generic competition.

 

* The FTAs grant extended periods of data exclusivity to pharmaceutical companies which would restrict the ability of generic manufacturers to have their drugs approved for sale.

 

*The FTAs impose limits on access to medications that force countries to trade away protections to public health established by World Trade Organization agreements

 

* An Oxfam study evaluating access to medicines in Jordan after their 2001 FTA with the U.S. found that drug prices had increased an average of 20% and that generic competition had been delayed on 79% of medicines.

 

* In general, four to five people can be treated for HIV utilizing affordable generic medicines for every one person treated with brand-name pharmaceuticals.

 

* In Colombia, 45% of the population lacks adequate access to the medicines they need.

 

* In Peru, nearly 50% of Peruvians have no public nor private health insurance. Pharmaceutical spending is a large burden on providing health coverage as it comprises one-quarter of public health expenditures and 44% of household spending on health.