The International Trade Practice Center on Bloomberg Law® provides in one comprehensive, time-saving resource.
Aug. 18 — The U.S. government will have to make further concessions if it wants to reach agreement on the Trans Pacific Partnership (TPP), following the failure of talks last month in Hawaii, Chile’s Foreign Relations Minister Heraldo Munoz said.
The U.S. “is going to have make additional efforts,” the minister said, noting that signing the intra-regional trade deal would be the crowning achievement for President Barack Obama after a year full of foreign relations triumphs. “We suppose that there will be another attempt in September to overcome the pending issues,” the minister said.
But the window of opportunity to finalize talks is brief, given the proximity of elections in Canada and presidential primaries in the U.S., according to TPP officials.
Speaking before the Foreign Relations Committee of the Chamber of Deputies in Valparaiso, the minister said Chile, Malaysia and Peru remain determined not to accept the U.S. proposal to extend the length of patents on biological pharmaceuticals beyond the five years stipulated in Chile's law.
The U.S. initially pushed for 12 years of protection, reduced to eight during the most recent rounds of negotiations.
But Chile is adamant on this issue. “We will defend this position to the death,” said Munoz.
Another red line is the refusal to accept U.S. demands to revise implementing legislation in member countries. “With that there is simply no deal,” the minister added.
Chile, a pioneer in the development of bilateral agreements, is keen for the benefits of increased market access and clearer rules on non-tariffs barriers that the pact promises, estimated to bring benefits worth US$3 billion or 1 percent of Chile’s GDP.
But its position on drugs patents is more than just a point of principle. Legislation promulgated by President Michelle Bachelet earlier this year requires the state to cover the medical costs of thousands of patients from catastrophic diseases requiring extremely expensive treatments.
The new fund is expected to cost US$ $144 million from 2017. But that figure could rise significantly if access to cutting-edge treatments were delayed.
Chile is hopeful that the U.S. demand for longer patents may go the way of other demands, such as patents for living things and surgical procedures, both abandoned during negotiations. Chilean officials said the U.S. has offered a possible compromise by including the estimated three years of required testing for biological treatments within the eight years demanded by the U.S. while respecting the five year length for drug patents demanded by Chile. Chile has yet to study whether such a proposal is workable, the official said. However the U.S. is also demanding an additional three years for patents on second-use discoveries, something Chile adamantly opposes.
Chile is not the only country standing in the way of a final deal. Munoz noted that Mexico, whose trade minister he met last week during a state visit, remains unmoved on the issue of rules of origin for automobiles while New Zealand is holding out increased market access for its dairy farmers.
To contact the reporter on this story: Tom Azzopardi in Valparaiso, Chile, at firstname.lastname@example.org
To contact the editor responsible for this story: Jerome Ashton at email@example.com
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)