AMA calls for greater PBS transparency in submission to Australia-U.S. Free Trade Agreement inquiry
AMA President, Dr Bill Glasson, said today that the AMA has accepted Australian Government assurances that the integrity and affordability of the Pharmaceutical Benefits Scheme (PBS) would not be impaired by the Australia-U.S. Free Trade Agreement (AUSFTA).
Releasing the AMA's submission to the Joint Standing Committee on Treaties Inquiry into the AUSFTA, Dr Glasson said that AMA support for the agreement was conditional.
"Firstly, we would be looking for greater transparency from all parties involved in the PBS process, especially the big American pharmaceutical companies that cast a shadow over the free trade talks," Dr Glasson said.
"The best possible act of Government support for the PBS would have been to exclude it from the negotiations altogether. But now that the PBS is part of the AUSFTA we have to ensure that it is protected and preserved to allow it to continue its core role in the Australian health system.
"Greater transparency and openness about the roles and objectives of all players - Governments, pharmaceutical companies, the Pharmaceutical Benefits Advisory Committee (PBAC), and the Pharmaceutical Benefits Pricing Authority (PBPA) - is vital if the PBS is to provide the best and most affordable drugs for Australian patients.
"A key change would be breaking down the secrecy surrounding so-called 'business-in-confidence' activities.
"We must also ensure that changes to Australian patent laws for medicines do not increase the cost of medicines in Australia, hinder innovative Australian research, or delay availability of new medicines.
"The AMA insists that the Medicines Working Group of officials must not take part in setting rules or making decisions relating to the PBS. This would undermine Australian sovereignty.
"While the AMA still has major concerns about the AUSFTA and the PBS, we acknowledge the hard work of the Australian negotiators in seeking to protect Australian interests.
"The lack of detail in the draft AUSFTA allows people to draw their own conclusions from the deal.
"Speaking on the AUSFTA in the U.S. Senate Finance Committee on 9 March 2004, Republican Senator, Jon Kyl, said: 'I hope that that's not only the first breakthrough with Australia specifically, because there's more work to be done there as you know, but also with other countries, particularly the OECD countries that like Australia have similar pricing constraints that end up shifting the burden for R&D for new drugs to the consumers here in the United States'.
"The AMA welcomes assurances that we will continue to be closely consulted in developing the detail of the AUSFTA," Dr Glasson said.
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