WikiLeaks has released a draft of an annex of a secret Trans-Pacific Partnership trade agreement, which would likely enable pharmaceutical companies to fight the ability of participating governments to control the rise of drug prices. It would empower companies to mount challenges to Medicare in the United States.
For a number of years, the US and eleven other countries—Australia, Brunei, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam—have been negotiating proposals for the TPP. Drafts previously released by WikiLeaks have shown that the US has been the most extreme negotiator in the process.
“This leak reveals that the Obama administration, acting at the behest of pharmaceutical companies, has subjected Medicare to a series of procedural rules, negotiated in secret, that would limit Congress’ ability to enact policy reforms that would reduce prescription drug costs for Americans – and might even open to challenge aspects of our health care system today,” according to Peter Maybarduk, director of Public Citizen’s Global Access to Medicines Program.
Public Citizen is a watchdog group that has been at the forefront of challenging the TPP in the US.
The annex, which is dated December 17, 2014, expressly names the Centers for Medicare & Medicaid Services as being covered by the trade agreement.
The watchdog group contends that the language could affect the ability of the Secretary of Health and Human Services to pursue pharmaceutical reform and “negotiate the price of prescription drugs on behalf of Medicare beneficiaries.”
“Vital to this reform would be the establishment of a national formulary, which would provide the government with substantial leverage to obtain discounts,” Public Citizen suggests. Yet, if the TPP is adopted, this “formulary” would be subject to the agreement’s requirements, which would “pose significant administrative costs, enshrine greater pharmaceutical company influence in government reimbursement decision-making and reduce the capability of the government to negotiate lower prices.”
The Senate already approved “fast track” legislation that would give President Obama “trade promotion authority” to send the TPP to Congress for a vote. The House of Representatives will vote on “fast track” this week (as early as June 11).
The Obama administration has been highly secretive, requiring senators and their staffers to have security clearances to read the drafted TPP.
Senator Barbara Boxer was confronted by a guard who told her she could not “take notes” on the trade agreement. The guard insisted the notes would be kept in a file, which made Boxer even more outraged. (What would stop the Obama administration from using such notes to maneuver around the objections of members of Congress?) (more…)