No increased medicine costs under TPP Agreement

New Zealand will not face increased medicine costs as a result of TPP deal. New Zealand and Australia won’t change their existing policy on biologics as a result of the agreement which has created some negative feedback from American pharmaceutical companies.

New Zealand’s trade minister Groser said that New Zealand will not pay any more for medicines and the cost of subsidy will not go up by a large extent. It will roughly cost $4.5 million in the 1st year to setup the software to provide additional info. And after that $2.5m a year will be the operating costs. Prime Minister John Key was very happy with the deal as he thinks it would give their exporters better access to more that 800 million people with expected financial benefits of NZ$4.7 billion annually.

Fonterra was disappointed by limited gains for dairy in TPPA as several countries refused to remove all blocks to free trade for NZ’s dairy and beef exports. He said TPP was a small but significant step for the sector, and the dairy deal was a long game that would eventually lead to elimination of tariffs on cheese exported to Japan.

Finally, the negotiators agreed on a minimum period of data protection for next-generation biologic drugs of at least 5 years after a deadlock over rights for drug manufacturers. The US had sought 12 years of protection to encourage pharma companies to invest in expensive biological treatments.The outcome is a two-track system with an 8 year protection for biologics and status quo for all other drugs.

Read full report: http://www.stuff.co.nz/national/politics/72688061/no-increased-medicine-costs-under-tppa

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