Is the TPP trade agreement good for New Zealanders?

Jay Kuten PHOTO/FILE

It seemed a good idea at the time. The time was 2005 and four small Asia-Pacific nations - Brunei, Chile Singapore and New Zealand - decided to work together on mutual trade. It was called the Trans-Pacific Strategic Economic Partnership Agreement (TPSEP or P4) and it had the goal of fostering trade among these four small countries.

By 2010, the trade negotiations had morphed into something much bigger, involving 12 nations, including such diverse interested parties as Mexico, Canada, Japan and the US. It had become the potential Trans Pacific Partnership or TPP. As can well be understood, the US, with its economic might, has taken a major role in these negotiations.

There have been many objections to the TPP. Most notable have been objections as to process. These negotiations have been conducted in secret. The usual rationales for secrecy have been adduced: secrecy promotes candour among negotiators. Trade negotiations are prima facie commercially sensitive. Secrecy is necessary to avoid political pressure.

Secrecy is anathema to the democratic process. Political pressure is a valuable adjunct, particularly because these trade agreements will have an effect on everyone's future. Among those questioning the process now are 151 US Democrats in Congress, who point out that they, who represent the people, have not been adequately consulted, while numerous corporations have had significant input in the writing of the treaty terms. When 151 congressional members of the President's own party announce their opposition to a potential agreement, it's time for the rest of us to sit up and take notice.

Such furthering of notice was provided recently when Wikileaks published the section of the agreement that deals with intellectual property rights. Of direct concern to New Zealanders are those provisions that deal with patents, especially as related to medication.

The pact would lengthen the period of patent protection and have the effect of forcing Pharmac to use brand-name drugs rather than the generics that currently save patients thousands of dollars annually.

A single example may illuminate the potential costs. Lisinopril is a commonly used medication in the treatment of hypertension (high blood pressure). With subsidy and requisite six-monthly nurse visit the total annual cost in NZ is $36. The cost for one month's supply in the brand-name market of the US is US$60. At the present rate of exchange that cost translates to $880 annually and without the costing of nurse visits. That is a cost increase of 2400 per cent and Lisinopril is one of the least expensive medications doctors can prescribe. Meds for the treatment of more complicated illnesses - cancer, say - can cost much more, even now. The trade pact would put their cost at astronomic.

Small wonder that doctors here and in several other countries have raised their objections to these provisions of the TPP.

It's not only affordable medications which stand to be sacrificed in the trade deal.

The Wikileaks-published document indicates that farmers may have something to be concerned about in terms of genetically modified seeds.

The potential hazard of "dumping" of foreign produce is a real concern. In the US, such practices by agribusiness have led to the decline of small family-owned farms in favour of the gigantic agri-corporations.

Whatever one thinks about Julian Assange and Wikileaks, the release of these documents has done us all a service. The best disinfectant to potential corporate overreach is the daylight of transparency.

The National Party, which seems never to have any questions of the corporate mind-set or of the goals of Big Pharma or Big Agra, is happy with the TPP. Trade Negotiations Minister Tim Grosser says opponents of the deal are "fools" and they may wind up wrecking the agreement.

Judging from the company of those in objection to the trade agreement simply on grounds of its degradation of democratic process and institutions, and the TPP's potential hazard to access to inexpensive medications and the safety of our family farms, I have to wonder just who are the fools here.