Another barrier to low-cost drugs

The pharmaceutical industry has found another clever way to keep Americans from importing affordable prescription drugs. Call it the boomerang effect.

Congress recently approved a trade agreement with Australia in what should have been a straightforward pact, two allies opening their markets to each other without barriers. Both countries will benefit from the increased trade, with one exception: prescription drugs. A provision added to the pact and approved by Congress would stop Australia from exporting low-cost drugs to the United States.

Although Australia isn't currently a major source of drugs for Americans, the trade agreement could set a bad precedent. Sen. John McCain, who has sponsored a bill that would make it legal, and easier, for Americans to import low-cost drugs from Canada and other countries, said the Australian pact would "impair our ability to pass and implement drug-importation legislation."

It shouldn't come as a surprise that the Bush administration would put such protections of the pharmaceutical industry in trade legislation, or that Congress would pass it. Drugmakers have been very generous with their campaign contributions, especially to Republicans. As a result, recent Medicare drug law actually prohibits the government from negotiating the cost of prescription drugs for retirees. And the Bush administration has indicated that it would like to close the flow of drugs from Canada. While such importation is illegal, it is currently allowed because Americans strongly favor the practice.

Yet whenever consumers think they have thrown out one threat to importation, it returns in another guise - this time as a trade agreement that benefits everyone except those who cannot afford their medication.

[Last modified July 26, 2004, 22:47:09]