R Street Institute

Policy Studies Federal Government Affairs

A New Prescription For Biologics Exclusivity In U.S. Trade Policy (Side Effects Include Lower Prices And Freer Trade)

by Clark Packard AND Bill Watson
Dec 18, 2019
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Key Points

The United States has spent too much time and political capital in trade negotiations trying to protect a small segment of the U.S. economy (the pharmaceutical industry) to the detriment of broader trade liberalization elsewhere in the economy.
We need to find the right balance in trade agreements between incentives for innovation and competition to drive down prices for consumers.
Smarter treatment of biologics in trade agreements can help reduce healthcare costs and pave the way for freer trade.

Long biologic exclusivity provisions fit perfectly into the category of misguided intellectual property provisions pushed by U.S. negotiators in FTAs. Such a provision would not open markets or even promote innovation. Instead, it would tie the hands of U.S. policymakers for the benefit of one part of one industry, while reducing the overall benefits to the U.S. economy.

Press release: The US Should Purge Controversial IP Policies from Its Trade Agenda

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