PHM-Exch> Study: Free Trade Agreement with EU threatens health services in the Philippines

[M3M - Anuschka Mahieu]

Study: Free Trade Agreement with EU threatens health services in the
Philippines

Study available at: http://www.phmovement.org/en/node/6307

The Aquino government is close to sealing a partnership cooperation
agreement (a prerequisite for a free trade agreement or FTA) with the
European Union (EU) that, among others, commits to liberalizing trade
and investments and loosening rules on intellectual property rights
(IPRs). According to IBON, the proposed EU-PH FTA is a practical
surrender of national sovereignty as the Aquino government has given up
economic protection needed for self-reliance and national development.

A study done by research group IBON showed that a free trade deal with
the European Union (EU) will lead to poorer access to health services
and more unaffordable medicines, as well as undermine government
revenues including public health spending.

For one, according to IBON, the EU thrust vis-à-vis IPR is to
systematically strengthen protections. This is through compliance with
additional patent treaties, requiring new data protection laws, stronger
border measures, seeking greater enforcement, expanding damages to
aggrieved parties, and complying with higher EU IPR standards.  

In contrast, an FTA with the EU is unlikely to have any explicit
provision or pattern of provisions that affirm the State’s right to take
necessary measures to ensure the public interest in the public domain,
that assert people’s access to medicines, or that seek to ensure that
the FTA can be interpreted in a way that undermines actual or potential
access to affordable medicines. All these will increase the tendency
towards higher drug prices and reduced accessibility in the country.

The IBON study also showed that an EU-RP FTA would be especially
problematic if it will not even allow for development flexibilities that
the World Trade Organization’s General Agreement on Trade in Services
(GATS) provides. On the contrary the Philippines can actually demand
‘performance requirements’ of foreign investors in the health sector.
Among these are: foreign equity restrictions and directing these areas
of greatest development need; local hiring of local health
professionals; local purchases of goods and services; limits on foreign
personnel; requiring consultations, medical services, drugs, and bed
allocations for indigent patients or particular diseases/conditions;
committing resources to developing medical education or to improving the
public health system; performing local research and development
domestically; and ensuring medical and organizational technology
transfers. 

The study concluded that putting the health sector within the scope of
services liberalization will consolidate and increase the influence of
private profit-seeking interests, pre-empt public intervention, and
worsen already existing trends in the health sector. Market-based
practices and, especially, foreign investment in the sector increases
the level of commercialization and tend to limit necessary regulatory
biases for poor and marginalized groups or areas.

According to IBON, the most sensible position for the country is to not
enter into any excessively and prematurely liberalizing free trade
agreement.  From the perspective of the health sector, a prudent option
is to completely exclude this sector from any FTA. This is to avoid
entering into legally-binding commitments and obligations that restrict
the Philippine government’s capacity to act, discriminate and regulate
in the public health interest. (end)

IBON Foundation, Inc. is an independent development institution
established in 1978 that provides research, education, publications,
information work and advocacy support on socioeconomic issues. 




Anuschka Mahieu
Médecine pour le Tiers Monde
Partners & Policy
tél: +32 (0)2 209 23 54
www.m3m.be | La santé, une question de lutte contre l'injustice



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