The TPP is a plurilateral trade agreement under negotiation by the U.S., Australia, Brunei, Chile, New Zealand, Peru, Singapore, and Vietnam. State leaders have warned trade officials that the inclusion of pharmaceutical provisions could limit Medicaid's ability to negotiate drug discounts.
Resolution from an organization of state legislators warning trade officials to avoid the inclusion of pharmaceutical pricing provisions in the Trans Pacific Partnership. Such provisions were included in the bilateral agreements with Australia and Korea, and they threaten state and local programs that negotiate discounts from pharmaceutical companies for programs that serve the poor.
ME Sen. Peggy Rotundo, ME Rep. Sharon Anglin Treat, VT Rep. Ginny Lyons, VT Rep. Kathleen Keenan, and NH Rep. Charles Reed have asked Ambassador Kirk to ensure that the TPP will not include provisions that limit the negotiation of drug prices.
State officials and consumer organizations are opposed to the pharmaceutical industry agenda to insert new international trade law restrictions on the operation of government pharmaceutical reimbursement programs and other measures that restrain the excessive prices of brand name medicines.
U.S. trade policy seeks to limit the systems of evidence-based pricing used by foreign countries to control pharmaceutical costs. However, U.S. state governments use the same types of strategies to control costs for Medicaid and other programs that purchase drugs. Negotiated discounts lead to large cost savings, which states rely upon to continue to serve low-income Americans.
The Basics of Trade
Understand how the global trading system works. A guide to resources and further information.