The AusFTA, PBS and Access to Medicines

Trade Minister Mark Vaile today rejected claims that pharmaceutical prices in Australia would rise as a result of the Australia-United States Free Trade Agreement.

"I signed the Australia-United States Free Trade Agreement in Washington earlier this week because it will link the Australian economy more closely with the largest and most dynamic economy in the world," Mr Vaile said. "It will create more and better jobs for Australians and provide important extra access for Australian product into the huge US market.

"Some academic commentators are too easily lured into seeing problems with the agreement that simply don't exist.

"Let's be clear, there is nothing in the FTA which would increase drug prices in Australia or change the way the PBS operates in relation to drug availability or pricing.

"Assertions by a small number of academics that the cost of pharmaceuticals in Australia will increase by $1.5 billion have no basis in fact and absolutely no economic foundation.

"As in all international treaties, the text of the FTA does not detail the implementation of all its measures. The Australian Government has ensured that the detail of implementation remains at Australia's discretion – not America's – thus protecting the PBS.

"It's time for those who make wild claims to come up with some facts to support their position.

"The fact is that the AUSFTA is overwhelmingly in the national interest because it will create jobs for Australians and enhance our standard of living."

Contact: Matthew Doman (ministerial) 02 6277 7420 - Nicole Guihot (departmental) 02 6261 1555