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Free Trade Provisions limits public health protections
by Deborah Gleeson
La Trobe University Opinion
 
A new trade agreement being negotiated between Australia, the United States and seven other countries could profoundly affect health of citizens in Australia and around the Pacific Rim for the foreseeable future.
 
The Trans Pacific Partnership Agreement, which involves Australia, the US, New Zealand, Chile, Singapore, Brunei, Peru, Vietnam and Malaysia is being hailed as a "21st century" agreement that will cement Australia"s place in the global economy and strengthen its position in the region.
 
But big US corporations are trying to use this agreement to force binding obligations on the other parties, including Australia, that are likely to reduce access to essential medicines and constrain the ability of governments to protect the health of their citizens.
 
The issues of greatest concern to public health experts are US proposals to include stringent intellectual property provisions and investment provisions in the agreement. These provisions go far beyond what Australia was prepared to agree to in the Australia-US Free Trade Agreement.
 
Australia"s Pharmaceutical Benefits Scheme could be decimated if the intellectual property provisions tabled by the US Government are adopted. The PBS is firmly in the sights of the powerful US pharmaceutical industry because it has inspired the introduction of similar programs in other countries.
 
Our PBS is generally successful in keeping the cost of medicines low for consumers. This is achieved through a process called reference pricing, where the price paid to a manufacturer for a particular drug is determined by comparison with cheaper generic drugs. Medicines are only listed on the PBS if they are determined to be safer and more effective than existing drugs.
 
Leaked US Government proposals indicate that the US is seeking intellectual property clauses in the proposed Pacific agreement that will grant pharmaceutical companies greater power in setting the prices of drugs, and will make it harder for generic manufacturers to produce cheaper versions.
 
These clauses will make patents easier to obtain, even for minor variations to existing drugs, and prevent unwarranted patent applications from being challenged before they are granted. Pharmaceutical companies will be able to market prescription drugs directly to consumers over the internet, a practice which is banned in all countries except for the US and New Zealand because it encourages over-prescribing.
 
Even more worrying than the effect of these clauses on Australia"s PBS is their likely effect on the prices and availability of HIV/AIDS drugs and other essential medicines in developing countries.
 
Take Vietnam for example. These clauses would mandate extensive changes to Vietnam"s patent laws to lower patenting standards and eliminate safeguards against unwarranted patents. According to an Oxfam report, similar provisions in the Jordan-US FTA increased the cost of medicines by 20per cent and threatened the government"s ability to continue providing health services.
 
Furthermore, the US is seeking provisions designed to protect the value of the investments of US businesses in other countries.
 
These investment provisions enable companies to sue governments in international courts if their laws and policies are perceived to reduce the value of the company"s investments.
 
Philip Morris has taken advantage of investment provisions in other trade agreements and investment treaties, suing the Uruguay Government in 2010 over its tobacco control measures and more recently indicating its intention to sue the Australian Government over the introduction of tobacco plain packaging, using an obscure Australian investment treaty with Hong Kong.
 
The dangers of these types of provisions are clear: they restrict the ability of governments to legislate to protect health, and they give power to foreign businesses to determine domestic policy.
 
The Australian Government has repeatedly affirmed that it would not be bullied by the tobacco industry into giving up on plain packaging. Legal advice suggests that Philip Morris is unlikely to win its claim, but it could cause delays to the legislation and cost the government millions of dollars in defending the case.
 
If investment provisions are included in the proposed Pacific agreement, the tobacco industry will have further opportunities to tie up the government in expensive legal action and stall the introduction of effective tobacco control policies.
 
The impact of these provisions is likely to be far more serious in developing countries, where the health burden caused by tobacco is much higher and tobacco companies have more at stake.
 
Governments of developing countries have fewer resources to spend on the battle and may be more cautious about introducing further controls over the tobacco industry.
 
Australia should reject the health-damaging clauses the US is asking for and proactively shape the agreement for the best possible health outcomes in Australia and around the Pacific Rim.
 
* Dr Deborah Gleeson is a Research Fellow in the School of Public Health and Human Biosciences at La Trobe University. First published in the August edition of the Canberra Times.


 


DR Congo potential as Environmental Powerhouse
by UN Environment Programme
Democratic Republic of Congo
 
With half of Africa"s forests and water resources and vast mineral reserves, the Democratic Republic of Congo (DRC) could become a powerhouse of African development provided multiple pressures on its natural resources are urgently addressed says the United Nations Environment Programme.
 
In its Post-Conflict Environmental Assessment of the DRC highlighting the global significance and extraordinary potential of the country"s natural and mineral resources.
 
The study warns of alarming environmental trends including increased deforestation, species depletion, heavy metal pollution and land degradation from mining, as well as a acute drinking water crisis which has left an estimated 51 million Congolese without access to potable water.
 
The outcomes of the two-year assessment highlights successful initiatives and identifies strategic opportunities to restore livelihoods, promote good governance and support the sustainability of the DRC"s post-conflict economic reconstruction, and reinforce ongoing peace consolidation.
 
The study"s good news is that most of the environmental degradation is not irreversible and there has been some progress in strengthening environmental governance.
 
For example, through steps such as regular anti-poaching patrols, the Congolese Wildlife Authority has secured the Virunga National Park, which at the peak of the DR"s crisis was losing the equivalent of 89 hectares of forest each day due to illegal fuelwood harvesting.
 
However, the country"s rapidly growing population of nearly 70 million people - most of whom directly depend on natural resources for their survival - and intense international competition for raw materials are adding to the multiple pressures on the DRC"s natural resource base.
 
The DRC has the highest level of biodiversity in Africa, yet 190 species are classified as critically endangered, endangered or vulnerable on the IUCN Red List of Threatened Species. Elephants and mountain gorillas are among the species under threat.
 
Up to 1.7 million tonnes of bushmeat (mainly antelope, duiker, monkey and wild boar) are harvested annually from unregulated hunting and poaching, contributing to species depletion.
 
The DRC"s tropical rainforests extend over 1.55 million km2 and account for more than half of Africa"s forest resources - making them a critical global ecosystem service provider.
 
The DRC has the largest artisanal mining workforce in the world - around two million people - but a lack of controls have led to land degradation and pollution. Its untapped mineral reserves are of global importance.
 
Around 15 tonnes of mercury are used annually in the DRC"s artisanal gold mining operations, making it the second largest source of mercury emissions in Africa.
 
The Congo basin supports Africa"s largest inland fisheries with an estimated production potential of 520,000 tonnes per year. While at the national level this resource is under-exploited, there are many instances of serious over-fishing pressures at the local level.
 
The most alarming climate change-related issue is the vulnerability of rain-fed small-scale agriculture. For example, as of 2020, the duration of the rainy season in the drought-prone region of Katanga is expected to reduce from seven months to five months.
 
There is a remarkable rise of "people-based" social enterprises, most of which rely on natural resources. Yet with a fragile banking system and limited incentives to formalize transactions, the informal sector"s growth has become a critical structural problem as businesses can operate beyond environmental and labour laws.
 
As it is still emerging from a long period of State decline and protracted crisis, the provision of basic services, including energy and water supply, and environmental problems in urban centres remain key challenges for the DRC.
 
To support the DRC"s development challenges, the UNEP assessment recommends a doubling of aid as urgently needed, including an estimated US$200 million per annum for the environment.
 
Achim Steiner, UN Under-Secretary General and UNEP Executive Director, said the assessment highlights strategic opportunities that can support the sustainability of the DRC"s post-conflict economic reconstruction and serve to accelerate peace consolidation efforts.
 
"This assessment confirms the DRC"s unique endowment of natural resources and how they can contribute to sustainable economic growth, but also reveals the legacy of using these resources in fuelling much of the conflict and human tragedy that has plagued its people for too long," he said.
 
"It is UNEP"s hope the assessment"s outcomes will galvanize action and greater support from the international community and help set the nation on a more sustainable course, capitalizing on the opportunities offered by a green economy in the DRC," the UNEP Executive Director said.
 
The assessment aims to support the creation of enabling conditions for a transition to a "green economy" in the DRC and promote a fundamental rethinking of the country"s "frontier" approach to the use of its natural resources.
 
Speaking at the launch, the Environment Minister, Mr José Endundo, said the government welcomed the assessment which sheds light on important issues and opportunities, including the potential of the carbon market and ecotourism as sources of large-scale financing.
 
"We know from this two-year joint study that the DRC"s vast mineral reserves are again the object of intense foreign competition and that this is placing great pressures on our forests, wildlife and water resources," Minister Endundo said.
 
"The REDD+ scheme in which the DRC is already engaged could potentially generate the necessary funding to address a wide range of development and environment challenges and we look to such mechanisms to support a sustainable recovery in the DRC," the Minister said.
 
Funded by the Government of Norway, the UNEP post-conflict environmental assessment covers all of DRC, not only conflict-affected areas, and provides 70 recommendations covering 15 sectors and 13 environmental degradation "hot spots".
 
Recommendations include: engaging in a "green economy" transition whereby sustainable reconstruction in the DRC includes capitalizing on the DRC"s emerging social economy to generate "green jobs" and other employment, including for former combatants.
 
Diversifying energy sources as a basis for restarting economic activity. The DRC has a hydropower potential of 100,000 megawatts - or 13% of the world"s hydropower potential - which could meet domestic needs and generate export revenue from the sale of electricity.
 
Overcoming the considerable environmental liabilities of a century of mining. - introducing a new, modern mining approach and introduce better environmental and occupational health standards.
 
Strengthening institutional capacities for disaster preparedness - such as epidemics, volcanic eruptions, floods and forest fires - including early warning systems.
 
More detailed surveying and mapping of natural resources and integrating the economic valuation of ecosystem services into all development planning.
 
The study includes input from more than 50 partners including NGOs, universities and the UN family.


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