Fed: Govt and opposition continue FTA brinkmanship

AAP General News (Australia)
08-05-2004
Fed: Govt and opposition continue FTA brinkmanship

CANBERRA, Aug 5 AAP - Prime Minister John Howard and Opposition Leader Mark Latham
will resume their brinkmanship today over the United States free trade agreement (FTA),
with time running out for its approval.

Today is the last parliamentary sitting day of the week, with no signs that either
Mr Howard or Mr Latham will give in on their respective positions concerning the deal.

Labor is demanding two amendments to the legislation that will bring the FTA into operation,
covering local content regulations for media and tougher penalties for patent laws to
keep a lid on drug prices under the Pharmaceutical Benefits Scheme.

The government has accepted the local content rules, but will not change its mind on
the patent law proposals.

If neither side gives in, the upcoming federal election could be fought over the FTA.

Mr Howard said Labor's proposals were unnecessary and would stifle innovation by companies
wanting patent protection.

But Mr Latham said that by protecting the PBS, Mr Howard could have the FTA quickly
and at the same time ensure drug prices were kept under control.

Experts are divided over the merits of Labor's proposals and the government's claims
the PBS will not be affected by the trade deal.

Professor Peter Drahos, from the Australian National University, said drug prices would
be pushed up by the free trade deal.

But he said he doubted whether Labor's proposals would be tough enough to prevent a
major drug company from flouting Australian laws to keep out of the market a low-priced
competitor.

AAP sw/rgr/pw

KEYWORD: TRADE US DAYLEAD

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