[CTC] Hatch: Biologics Commitments From TPP Countries Would Not Require Side Letters

[Arthur Stamoulis]

Republicans are lining up their cover to flip back pro-TPP immediately post-election...


INSIDE US TRADE
 
Hatch: Biologics Commitments From TPP Countries Would Not Require Side Letters

September 08, 2016 
Senate Finance Committee Chairman Orrin Hatch (R-UT) this week said commitments from Trans-Pacific Partnership countries on his demand for 12 years of market exclusivity for biologic drugs would not have to be framed in a contract or a side agreement – but rather as a “methodology” he believes “honorable” countries will follow.

“We have to come up with a methodology where they agree to 12 years,” Hatch told Inside U.S. Trade on Sept. 7. “That doesn't have to be a contract; it doesn't have to be an agreement; there are a number of ways they can do that. And honorable countries will live up to it.”

Hatch said his “specific demand” can be achieved by “finding a way of having the countries agree to change that terminology in the TPP to 12 years, or come up with something that would be acceptable.”

The Obama administration, Hatch and the pharmaceutical industry have been discussing how to reaffirm that the 12 year-period – as provided under U.S. law – will not be affected by TPP.

Hatch said the issue “is not resolved yet,” but noted that the administration is aware that “12 years is a serious time language I've got to have.”

“They know that I'm sincere; they know I'm not asking for outrageous things,” Hatch said. “I'm asking for U.S. law. What we want to do is make sure that [the other countries] have to meet those terms too.”

Sources told Inside U.S. Trade that one path to a potential solution discussed by Hatch and the administration would be to include 12 years of market exclusivity in the TPP implementing bill that the Congress will vote on.

Nailing down that time frame in the implementing legislation would ensure a future administration could not propose a shorter exclusivity period, as has been attempted in previous budgets by President Obama.

While emphasizing that a final deal on a fix has not yet been struck, Hatch said the administration, in its attempt to meet his demand, may be looking at the possibility of side letters, which -- according to Hatch – a number of countries would be willing to commit to.

“I suspect they are looking at side agreements,” Hatch said. “I understand there are a number of [TPP countries] willing to do this. But that's up to the administration to bring that along.”

When asked which countries have expressed willingness to enter into any form of side agreement on biologics, Hatch said “that's not up to me to say. I know which countries are willing to go to 12 years but that's up to [the administration] to determine.”

As for the timing of a vote, Hatch said he “would favor a vote anytime we get one, if they get it fixed,” while characterizing progress on the biologics issue to date as “not enough.”

“We're not going to get this done before the end of this fiscal year, it seems to me,” he added.

Even if the biologics fix is achieved, Hatch said the deal won't easily pass Congress.

“Without [a biologics fix], TPP is not going to pass; and with it, it's going have a rough time passing,” Hatch told Inside U.S. Trade, noting additional issues lawmakers have raised in opposition to the deal.

“There's some other things wrong with this; the services section is wrong, the labor section has some problems,” Hatch said. “But I think if we could solve this one problem, they're a long way towards getting TPP passed.”

While he hasn't spent a lot of time on the financial services data fix because he's “been worried more” about biologics, Hatch said, “I hear we made strides, I put it that way,” he added.

Casting doubt on the possibility that the deal will garner sufficient support to pass in a lame-duck session, Hatch said the agreement would have a chance in the next administration.

“If they don't solve this problem on TPP, let's face it, first of all there won't be a TPP and secondly, I mean we got five years more to work on TPP, so the next president is gonna have a crack at this if we don't do it now,” he said.

The same point was made recently by Senate Majority Leader Mitch McConnell (R-KY), who said the deal will be around for the next administration and Congress to “massage. <http://insidetrade.com/node/155609>”

When asked how he thinks TPP might a Clinton or Trump administration given the anti-trade rhetoric emanating from both campaigns, Hatch stressed the general importance of trade for the U.S.

“I think it has to happen,” he said. “That just makes good sense. It's international trade and we need to be involved more on international trade.” – Jenny Leonard(jleonard at iwpnews.com <mailto:jleonard at iwpnews.com>)

 
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