US, Australia lock horns on ‘biologics’ in TPP trade talks

The federal Trade Minister’s office says there is a 50 per cent chance the Trans-Pacific Partnership (TPP) trade deal could be signed today.

Twelve countries have been negotiating throughout the night in the US city of Atlanta in an effort to reach an agreement on the deal, which would create a free trade area covering 40 per cent of the world economy.

The signing has been held up by a stand-off between Australia and the United States over patent protections for pharmaceuticals.

The US has sought to increase the length of time patents for new biologic drugs are protected, but Trade Minister Andrew Robb insists Australia will not extend protections for more than five years.

Despite the stand-off, Japan’s economy minister Akira Amari said overnight that there had been “major progress” in the discussions.

Mr Amari told Japanese journalists a solution to the pharmaceutical patent issue had been found.

“We are making preparations now to announce a deal in principle this afternoon (US time),” he said.

The US allows pharmaceutical companies an exclusive period of 12 years to use clinical data behind the approval for a new biological drug.

The Obama administration had previously proposed lowering the threshold to seven years, but has pushed a proposal for an eight-year minimum in the TPP talks.

Australia — along with others such as New Zealand and Chile — has been unwilling to offer more than five years protection for the medicines, because longer terms would increase the cost of state-subsidised medical programs.

Drug companies argue a longer period is needed to create an incentive for developing treatments for diseases such as cancer and arthritis

The Obama administration has been the prime driver behind the TPP, to create a foundation for “21st century trade rules,” setting standards on trade, investment, data flows and intellectual property that eventually non-TPP members — particularly China — will have to accept.

ABC/wires