The Effects of Trade Agreements on Imports of Biologics: Evidence from Chile
-
Danielle Trachtenberg
,
Warren A. Kaplan
Abstract
This paper develops new indicators that measure the strength of intellectual property rights (IPR) provisions in Chile’s free trade agreements (FTAs). We use these new indicators to examine the extent to which FTAs with strong IPR provisions impact the volume, unit value and overall value of imported biologic medicines into Chile. We find that FTAs with more stringent IPR provisions increase both the volume and the unit value of imported biologics, suggesting greater availability of imported biologics at a higher price. Further research, however, is necessary to determine whether the increases in volume and unit prices of imports lead to greater universal access to biologics or greater inequity in access to these medicines.
Acknowledgement
Rockefeller Brothers Fund, Funder Id: http://dx.doi.org/10.13039/100006046, Grant Number: 17-213.
Appendix
A Classification of HS-6 Digit Codes
Biologic HS-6 Codes.
| HS-6 Code | Classification |
|---|---|
| 300110 | Biologic |
| 300120 | Biologic |
| 300190 | Biologic |
| 300210 | Biologic |
| 300220 | Biologic |
| 300230 | Biologic |
| 300290 | Biologic |
| 300310 | No |
| 300320 | No |
| 300331 | Biologic |
| 300339 | No |
| 300340 | No |
| 300390 | No |
| 300410 | No |
| 300420 | No |
| 300431 | Biologic |
| 300432 | No |
| 300439 | No |
| 300440 | No |
| 300450 | No |
| 300490 | No |
| 300510 | No |
| 300590 | No |
| 300610 | No |
| 300620 | No |
| 300630 | No |
| 300640 | No |
| 300650 | No |
| 300660 | No |
B Classification of Provisions in Chile’s FTAs
Classification of IPR-Related Provisions in Chile’s Bilateral FTAs.
| USA | JAP | IND | MEX | CHN | CAN | THA | HKG | MYS | TUR | AUS | KOR | PAN | PER | COL | VNM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Specific incorporation of DOHA agreement | C | N | N | N | C | N | N | N | N | N | N | N | N | N | N | N |
| Non-derogation/affirm of TRIPS | C | C | N | C | N | N | C | C | C | C | C | C | C | C | C | N |
| National treatment | C | C | C | C | C | C | N | C | C | C | C | C | C | C | C | C |
| Patentable subject matter | TP* | N | N | N | N | N | N | N | N | N | N | N | N | N | N | N |
| Revocation or cancellation of patents | TP* | N | N | N | N | N | N | N | N | N | TP* | N | N | N | N | N |
| Patent term restoration due to admin. delays | TP* | N | N | N | N | N | N | N | N | N | N | N | N | N | N | N |
| Patent term extension | TP* | N | N | N | N | N | N | N | N | N | N | N | N | N | N | N |
| Protection of “undisclosed data” | TP | N | N | N | N | N | N | N | N | N | N | N | N | C | C | N |
| Procurement: may discrim against open tendering | C | C | N | N | N | C | N | C | N | N | C | C | N | N | C | N |
| Procurement: open tendering NOT obliged | C | N | N | N | N | N | N | N | N | N | N | N | N | N | N | N |
| Compulsory licensing only under TRIPS terms | N | N | N | N | N | N | N | N | N | N | N | N | N | C | C | N |
C, TRIPS compliant; N, no specific language on provision; TP*, potentially TRIPS plus; TP, TRIPS plus.
Classification of IPR-Related Provisions in Chile’s Multilateral FTAs.
| Partner country | Chile-EU | Pacific Alliance | P4 | Chile-Central America | Chile-Mercosur | Chile-EFTA |
|---|---|---|---|---|---|---|
| Specific incorporation of DOHA agreement | N | N | N | N | N | N |
| Non-derogation/affirm of TRIPS | C | N | C | N | C | C |
| National treatment | C | C | C | C | N | C |
| Patentable subject matter | N | N | N | N | N | N |
| Revocation or cancellation of patents | N | N | N | N | N | N |
| Patent term restoration due to admin. delays | N | N | N | N | N | TP* |
| Patent term extension | N | N | N | N | N | TP* |
| Protection of “undisclosed data” | N | N | N | N | N | TP |
| Procurement: may discrim against open tendering | C | C | C | N | N | C |
| Procurement: open tendering NOT obliged | N | N | C | N | N | N |
| Compulsory licensing only under TRIPS terms | N | C | N | N | N | C |
C, TRIPS compliant; N, no specific language on provision; TP*, potentially TRIPS plus; TP, TRIPS plus.
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