<html><head><meta http-equiv="Content-Type" content="text/html charset=utf-8"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space;" class=""><h1 class="title" style="margin: 0px 0px 10px; padding: 0px; border: 0px; color: rgb(51, 51, 51); font-size: 1.833em; line-height: 26px; font-family: Arial, Helvetica, sans-serif;">GOP lawmakers lament proposed scale-back of biologics protections in USMCA</h1><div class="timestamp" style="margin: 4px 0px 12px; padding: 4px 0px; border-width: 1px 0px; border-top-style: solid; border-bottom-style: solid; border-top-color: rgb(192, 192, 192); border-bottom-color: rgb(192, 192, 192); color: rgb(136, 136, 136); font-weight: bold; font-family: Arial, Helvetica, sans-serif;">December 4, 2019 at 6:00 PM</div><div class="body" style="margin: 0px; padding: 0px; border: 0px; font-family: Arial, Helvetica, sans-serif;"><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">Republican lawmakers on Wednesday expressed concern about reports the Trump administration is willing to give up language on protections for biologic drugs in the U.S.-Mexico-Canada Agreement, but one ardent supporter of strong data exclusivity provisions in trade deals suggested the move would not affect his support for USMCA.</div><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">Rep. George Holding (R-NC), a member of the House Ways & Means trade subcommittee, told <em style="margin: 0px; padding: 0px; border: 0px;" class="">Inside U.S. Trade</em> the reports were disappointing. He called strong biologics protections in trade deals critical and pointed to his stance throughout the Trans-Pacific Partnership talks, when he backed <a href="https://insidetrade.com/node/145755" style="margin: 0px; padding: 0px; border: 0px; color: rgb(0, 102, 204);" class="">12 years</a><strong style="margin: 0px; padding: 0px; border: 0px;" class=""> </strong>of protection.</div><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">“I have read those press reports and would be very disappointed if that’s the case,” Holding told <em style="margin: 0px; padding: 0px; border: 0px;" class="">Inside U.S. Trade.</em> “We fought hard for the data-exclusivity provisions in [Trans-Pacific Partnership] and my arguments for those remain just as valid today in this arrangement.”</div><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">Congressional Republicans cited TPP’s too-short data exclusivity term for biologics as one provision the Obama administration had to fix before it submitted a TPP implementing bill. The trade pact was never voted on.</div><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">But Holding said he would not withhold his support for USMCA if the biologics protections were cut or removed.</div><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">“USMCA is an incredible agreement. I certainly would be disappointed with less data exclusivity, but I anticipate voting for USMCA,” Holding asserted.</div><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">The Office of the U.S. Trade Representative has proposed scaling back protections for biologic drugs in the deal, <a href="https://www.wsj.com/articles/u-s-considers-easing-drug-protections-to-break-logjam-over-trade-pact-11575320033" style="margin: 0px; padding: 0px; border: 0px; color: rgb(0, 102, 204);" class=""><em style="margin: 0px; padding: 0px; border: 0px;" class="">The Wall Street Journal</em></a><strong style="margin: 0px; padding: 0px; border: 0px;" class=""></strong>reported this week. Bloomberg later <a href="https://www.bloomberg.com/news/articles/2019-12-03/mexico-weighs-u-s-plan-to-strip-biologic-drugs-from-trade-pact" style="margin: 0px; padding: 0px; border: 0px; color: rgb(0, 102, 204);" class="">reported</a><strong style="margin: 0px; padding: 0px; border: 0px;" class=""> </strong>that Mexico was considering a U.S. proposal to remove biologics protections entirely.</div><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">The USMCA text approved by the three parties would protect biologic drugs from competition from generic versions for 10 years. U.S. law protects biologic drugs for 12 years. During the Trans-Pacific Partnership negotiations, the 12 parties to the deal -- including the U.S. -- agreed to a data exclusivity period for biologics of at least eight years, or to provide five years of exclusivity while undertaking additional regulatory measures.</div><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">Mexican Under Secretary for North America Jesús Seade, in a column in the Mexican newspaper <em style="margin: 0px; padding: 0px; border: 0px;" class="">El Universal</em>, on Wednesday said “very high protection” for biologic drugs would be “eased dramatically,” according to <a href="https://www.nytimes.com/reuters/2019/12/04/world/americas/04reuters-usa-trade-mexico.html" style="margin: 0px; padding: 0px; border: 0px; color: rgb(0, 102, 204);" class="">reports</a>. Seade met with U.S. Trade Representative Robert Lighthizer on Wednesday to discuss proposed changes to USMCA negotiated between the USTR and a group of House Democrats.</div><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">In a July 26 <a href="https://insidetrade.com/sites/insidetrade.com/files/documents/2019/jul/wto2019_0235.pdf" style="margin: 0px; padding: 0px; border: 0px; color: rgb(0, 102, 204);" class="">progress report</a><strong style="margin: 0px; padding: 0px; border: 0px;" class=""> </strong>delivered to House Speaker Nancy Pelosi (D-CA) by the USMCA working group, the members proposed improvements to the deal aimed at preserving “Congress’s freedom to legislate to improve access to affordable medicines, particularly for some of the most expensive drugs on the market;” enhancing “standards for access to affordable medicines” established in the so-called May 10 agreement; and improving “opportunities for competition to improve access to affordable medicines.”</div><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">Sen. Thom Tillis (R-NC) said on Wednesday that he had been updated by USTR officials this week on the biologics issue, though he declined to provide details.</div><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">“We have gotten an update particularly on some of the biologics provisions; there are some proposals on the House side we are sorting through it now but we need to get [USMCA] passed,” he told <em style="margin: 0px; padding: 0px; border: 0px;" class="">Inside U.S. Trade</em>. On the biologics move, he said “I’ve got some concerns with it, but I need to look at the bigger package before I make a decision.”</div><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">Rep. Dan Kildee (D-MI), a member of the House Ways & Means trade subcommittee, confirmed that the biologics threshold was up for reduction.</div><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">“Unfortunately, the way it’s been discussed is nothing is agreed until everything is agreed to, but that seems to be where we are,” he told <em style="margin: 0px; padding: 0px; border: 0px;" class="">Inside U.S. Trade.</em> Kildee is a not a member of the USMCA working group.</div><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">House Ways & Means Committee Chairman Richard Neal (D-MA) said on Wednesday the USMCA talks were on the two-and-a-half-yard line, according to <a href="https://twitter.com/elwasson/status/1202301512678039553?s=19" style="margin: 0px; padding: 0px; border: 0px; color: rgb(0, 102, 204);" class="">Bloomberg</a>.</div><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">But House Ways & Means trade subcommittee Chairman Earl Blumenauer (D-OR) said a deal with USTR was unlikely to be reached this week, as some USMCA advocates had hoped. “I don’t know about this week,” he told <em style="margin: 0px; padding: 0px; border: 0px;" class="">Inside U.S. Trade </em>on Wednesday. USMCA backers are growing restive about a dwindling number of legislative days in 2019, fearing the deal will founder if pushed into the thick of an election year.</div><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">Mexican President Andrés Manuel López Obrador and a key Mexican business group this week gave USMCA backers further cause for concern, <u style="margin: 0px; padding: 0px; border: 0px;" class="">pushing back</u> <strong style="margin: 0px; padding: 0px; border: 0px;" class="">[/node/167756] </strong>against a U.S. proposal -- hammered out by House Democrats and USTR officials -- to send inspectors to Mexico to ensure the country complies with labor provisions in the deal.</div><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">Asked if USTR, Mexico and the USMCA working group, comprised of House Democrats, would have to further address Mexican concerns, Blumenauer told <em style="margin: 0px; padding: 0px; border: 0px;" class="">Inside U.S. Trade </em>“I don’t think they are going to have to.”</div><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">Kildee said the objections from officials in Mexico were “coming from the people that we hope are going to object to it.”</div><div style="margin: 0px; padding: 0px 0px 15px; border: 0px;" class="">“If Mexican business interests actually like the agreement, I would have some real questions about it,” Kildee told <em style="margin: 0px; padding: 0px; border: 0px;" class="">Inside U.S. Trade. </em>“They are the ones that are going to have to change their behavior,” he said, calling the reaction an “indication that we are getting close to where we need to be because they have been the problem.” -- <em style="margin: 0px; padding: 0px; border: 0px;" class="">Isabelle Icso </em>(<a href="mailto:iicso@iwpnews.com" style="margin: 0px; padding: 0px; border: 0px; color: rgb(0, 102, 204);" class="">iicso@iwpnews.com</a>)</div></div></body></html>