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www.fdanews.com/articles/81938-us-close-to-agreeing-on-fta-with-colombia-ecuador-and-peru

US CLOSE TO AGREEING ON FTA WITH COLOMBIA, ECUADOR AND PERU

October 26, 2005

According to recent reports, a free trade agreement (FTA) between the United States, Colombia, Ecuador and Peru could be agreed upon by the end of November. The US has been in negotiations with the three Andean countries since May 2004, although talks have been stalled by disagreements over drug patent protection.

Research-based drugmakers have pushed hard for the FTA to tighten up intellectual property issues. Many multinationals are facing increasing competition from cheap copies. The US FDA estimates that copy drugs account for more than 40% of sales volume in some markets and it is a problem that governments in the region have failed to tackle. In 2000, both Colombia and Peru adopted legislation that fails to protect confidential data submission to regulators.

Part of the problem lies in the fact that the countries negotiating the FTA are unwilling to curb the supply of cheap drugs to their large low-income populations. This is especially true in Peru and Colombia, which both have elections next year. Whether the new intellectual property accords will be stricter than TRIPS remains to be seen, although in the long-term sharp drug prices are expected especially for some hi-tech treatments. The US ratified a free trade agreement with five Central American countries and the Dominican Republic in July.