AUSTR Demetrios Marantis
Today the Senate Finance Committee held a hearing on “The President’s 2013 Trade Agenda.” Opening statements, a webcast, and instructions for submitting comments to the record are all here.
The sole witness at the hearing was Acting United States Trade Representative Demetrios Marantis.
There was much discussion of Trade Promotion Authority (TPA) – which many Senators want to see move forward. TPA legislation will include the defining of negotiating objectives for USTR. Senators also asked about the Trans Pacific Partnership (TPP) and the Trans Atlantic Free Trade Agreement negotiations. Most of the discussions about intellectual property and trade were about data exclusivity for biopharmaceuticals, which Sen. Hatch and Menendez want included in the TPP.
Prepared statements
Sen. Baucus called for the renewal of Trade Promotion Authority (TPA) in his opening statement, and said he would work to get it passed. He said that he wants the TPP to be concluded this year. Baucus said that China’s “wholesale theft” of U.S. intellectual property “must be fought.”
Sen. Hatch said that the TPP and TAFTA hold great promise, but that tough issues need to be resolved. The TPP must include strong IP protection for biologics, and TAFTA must include the “highest levels” of IPR protection in order to win his support.
Acting USTR Demetrios Marantis gave a very short prepared statement, in which he reported that USTR is intensifying TPP negotiations, preparing to begin negotiations for TAFTA, preparing to begin negotiating a services agreement in Geneva, and looking forward to “beginning” to work with the committee on Trade Promotion Authority. He also discussed enforcement activities, and warned that funding cuts have complicated USTR’s efforts to fulfill its responsibilities.
Q&A
At the beginning of Q&A Baucus asked Marantis to discuss TPA. He brought up the fact that the law will define USTR’s trade objectives going forward, and that the world economy has changed since the last time goals were legislated. Marantis reaffirmed that USTR is going to move forward on TPA, and he said that there is a diversity of interests on the committee and in general about what the negotiating objectives should be
Sen. Hatch said that the pharmaceutical industry is the biggest driver of innovation in the US economy, and that under U.S. law, biopharmaceuticals now have 12 years of data exclusivity. Therefore, he is “perplexed” that the administration has not sought 12 years of data protection for biopharmaceuticals in the TPP negotiations. Marantis answered that USTR is discussing data protection with committee and with the TPP partners, and that it is a “tough issue.” Hatch asked him how it is his position to “ignore U.S. law.”
Sen. Brown asked how a re-articulated TPA bill could “ensure that the benefits of trade are shared more broadly than they have in the past.” He asked if there are any particular new negotiating objectives that the administration would seek. He suggested that more trade adjustment assistance could be included in a TPA bill. Marantis assured Brown that USTR would consult him and others on the committee about the negotiating objectives in new TPA legislation.
Sen. Menendez said that any 21st century agreement needs strong intellectual property protection, and that protections for biologics enjoy strong bipartisan support in Congress. He asked if it is the administration’s plan to table a proposal for 12 years of data exclusivity for biopharmaceuticals in the TPP, and noted that it is the standard in US law. Marantis answered that USTR is not sure what it will table yet, and he said against that USTR has been discussing the issue with trading partners and with the Members of the Committee. Biopharmaceuticals are a new area of innovation. Some trading partners provide for this type of protection, and some do not. Menendez said that he will be looking for a 12 year term of data exclusivity when deciding whether or not to do support the final agreement.
Senators Portman, Grassley, and Thune also stressed their desire to see TPA move forward.
