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Correspondence to: Patrick Harris, CHETRE, Locked Mail Bag
7103, Liverpool BC, NSW 1871; e-mail; patrick.harris@unsw.edu.au
Editorials
doi: 10.1111/j.1753-6405.2012.00823.x
Strengthening public
health engagement in
trade policy: PHAA’s
policy on Trade
Agreements and Health
Deborah Gleeson and David Legge
School of Public Health and Human Biosciences, La Trobe University, Victoria
Trade relations affect the way we live and the determinants of health
such as employment patterns, nutrition, economic development and
living standards.
1,2
Trade agreements to regulate trade relations can
contribute to better health where they lead to increased employment
and economic development (assuming benefits are well distributed,
decent working conditions are maintained and growth is not achieved
at the cost of the environment), but they can also reduce the ability
of governments to protect health.
3
Trade agreements can enable
transnational corporations to discourage governments from regulating
for health (e.g threatening to use indirect expropriation clauses to
discourage governments from regulating tobacco packaging) or from
regulating for health care (e.g. deploying United States trade power
to undermine pharmaceutical pricing and reimbursement schemes).
3
It is important for public health professionals and organisations
to engage with trade policy issues. The Public Health Association
of Australia (PHAA) policy on Trade Agreements and Health is a
significant step towards facilitating such engagement.
PHAA Trade Agreements and Health policy
The Trade Agreements and Health policy was first developed in the
context of negotiations for the Australia US Free Trade Agreement
(AUSFTA) in 2004. The US negotiators sought to introduce
intellectual property (IP) and pharmaceuticals provisions which
would have weakened the Pharmaceutical Benefits Scheme (PBS),
and investor-state dispute settlement provisions (ISDS) which would
have enabled US corporations to challenge Australian public health
policies in international arbitration.
4
PHAA played a strong role in a successful public campaign to
preserve the PBS and keep ISDS provisions out of the AUSFTA.
5
The
campaign sensitised the public health community to the potential public
health consequences of trade agreements. The Trade Agreements and
Health policy was developed to strengthen PHAA advocacy in this area.
Key points of intersection between
public health and trade agreements
Many different aspects of trade agreements can affect population
health and the provision of healthcare. Intellectual property provisions
affect access to medicines; ISDS affects the scope for public health
regulation; subsidised agriculture and trade liberalisation affect
food security and farmers’ livelihoods; and liberalisation of trade
in manufactured goods constrains industrialisation in developing
countries and associated possibilities for population health.
Intellectual property rights and access to medicines
Intellectual property (IP) regulation has been a feature of trade
agreements since the TRIPS Agreement (Trade Related Aspects of
Intellectual Property Rights) was negotiated in 1994.
The South African treatment access campaign from 1997 to 2001 is
a famous case illustrating the effect IP regulation can have on access
to medicines. In 1997, 39 international pharmaceutical companies
brought a case against the South African government saying that
its ‘parallel importing’ legislation (designed to improve access to
cheaper versions of brand name drugs) ran counter to its TRIPS
commitments. At this stage the cost of brand name anti-retrovirals was
around US$10,000 per treatment year while generic versions were
available for US$350 per year.
6
Over the next four years a powerful
civil society campaign arose against the drug companies. In May
2001 the companies accepted defeat, withdrew their action and paid
the costs of the South African government.
7
In December 2001 the
Ministerial Council of the World Trade Organization (WTO) adopted
the Doha Statement on Public Health
8
and agreed to amendments
of the TRIPS Agreement for wider access to compulsory licensing.
Meanwhile, the stalemate between rich and poor countries over
the further development of the WTO treaties led the US and Europe
to progress their trade ‘liberalisation’ goals through bilateral and
regional trade agreements, many of which have had ‘TRIPS Plus’
provisions included (meaning easier patenting but greater protection
of patents). Evidence suggests that TRIPS Plus provisions in the US-
Jordan FTA increased medicine prices by twenty percent between