Chile Minister Wants U.S. Concessions in TPP

An article in Bloomberg (August 19, 2015) titled “Chile Minister Wants U.S. Concessions in TPP” (http://www.bna.com/chile-minister-wants-n17179934929/) describes some of the main controversial points for Chile of the Trans Pacific agreement. The principle debated topic has been the length of patents on biological pharmaceuticals. While Chile currently enforces 5 years of patents, the U.S through the TPP agreement is pushing for 12 years protection now reduced to 8 years after the most recent rounds of negotiations. Chile’s legislation requires that the state covers the extremely expensive medical expenses of patients from catastrophic diseases. Therefore a longer period of protection for patents represents higher risks and costs for the South American country. With regards to this discussion, U.S has offered the inclusion of the 3 years of required testing within the 8 years demanded but TPP. Will Chile accept the U.S proposal? Will extending the length of patents incentive innovation and balance the trade-off of the implied costs for the countries with their subsidized health programs?

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