As Democrats Say New NAFTA Must Be Reopened, Canada Says No
The extended period of exclusivity for biologic drugs contained in the new NAFTA language continues to draw fire from Democrats in the House of Representatives, including from the new Trade Subcommittee chairman, Rep. Earl Blumenauer, D-Ore. Although advocates believe Mexico and Canada would welcome a change to this provision (see 1811210021), Canada's foreign minister threw cold water on that idea on Feb. 6.
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Blumenauer tweeted, "Talking to other members, my strong first impression is that there’s a lot of work needed on access and cost of Rx drugs in NAFTA 2.0 to get committee support and House passage. Many other significant concerns with provisions relating to the environment, labor, and enforcement all need strengthening."
One of the committee members who has been vocal about the new NAFTA's shortcomings is Rep. Bill Pascrell, D-N.J. He joined a press release led by longtime NAFTA foe Rep. Rosa DeLauro, D-Conn., that criticized President Donald Trump's pitch on the new NAFTA during his State of the Union speech Feb. 5 (see 1902060004). "Democrats would be willing to support a deal that puts working people first by ending outsourcing incentives and sets forth a trade template that supports American workers. However, the text is simply not there yet," DeLauro wrote. "As it stands, this deal locks in monopoly rights for Big Pharma, effectively ensuring that drug prices will remain high by providing giveaways to pharmaceutical companies. If the President is serious about reducing the cost of prescription drugs, this issue must be addressed. This provision -- along with strong, enforceable labor and environmental provisions that ensure workers are paid a fair wage and environmental concerns are addressed -- will require changes to the core of the agreement."
The new NAFTA grants biologics 10 years of exclusivity, longer than was agreed to in the Trans-Pacific Partnership. Current U.S. law gives them 12 years of exclusivity. Even though the trade deal would not change how long biosimilars must wait to enter the market, Rep. Jan Schakowsky, D-Ill., said it would tie Congress' hands if they wanted to shorten that period to help consumers save money.
DeLauro's use of the word "core" signals that she doesn't think side letters will cut it. But Canadian Foreign Minister Chrystia Freeland told reporters Feb. 6. "As far as the new NAFTA is concerned, Canada has done its part," she said.