John Howard finally let the cat out of the bag, with his suggestion that Labor’s amendments aimed at preventing evergreening of patents might ‘violate the spirit’ of the Free Trade Agreement with the US. As I pointed out last week
The letter of the FTA gives a fair bit of room to move, allowing for interpretations more or less favorable to the pharmaceutical lobby on the one hand and the PBS on the other.The government has tried to have it both ways, assuring the Australian public that the FTA clauses relating to PBS are meaningless words inserted to placate the Americans, while promising their (very close) friends in the pharmaceutical lobby that they can expect more favorable treatment, consistent with Wooldridge’s efforts to stack the PBAC and so forth. Passage of the FTA without amendment would have made it easy for the government to deliver to its friends when the elections were out of the way and the electors conveniently on the sidelines. Adding amendments directed at specific possible abuses implies, more generally, that Australia is committed to ensuring that the drug lobby gets nothing more than its minimum legal entitlement under the FTA – a nonbinding review, and observation of patent law.
Howard even raised the prospect that the Americans might walk away from the deal. If only!