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The Effects of Trade Agreements on Imports of Biologics: Evidence from Chile

  • Danielle Trachtenberg EMAIL logo , Warren A. Kaplan , Veronika J. Wirtz and Kevin P. Gallagher
Published/Copyright: February 20, 2020

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

Table 9:

Biologic HS-6 Codes.

HS-6 CodeClassification
300110Biologic
300120Biologic
300190Biologic
300210Biologic
300220Biologic
300230Biologic
300290Biologic
300310No
300320No
300331Biologic
300339No
300340No
300390No
300410No
300420No
300431Biologic
300432No
300439No
300440No
300450No
300490No
300510No
300590No
300610No
300620No
300630No
300640No
300650No
300660No

B Classification of Provisions in Chile’s FTAs

Table 10:

Classification of IPR-Related Provisions in Chile’s Bilateral FTAs.

USAJAPINDMEXCHNCANTHAHKGMYSTURAUSKORPANPERCOLVNM
Specific incorporation of DOHA agreementCNNNCNNNNNNNNNNN
Non-derogation/affirm of TRIPSCCNCNNCCCCCCCCCN
National treatmentCCCCCCNCCCCCCCCC
Patentable subject matterTP*NNNNNNNNNNNNNNN
Revocation or cancellation of patentsTP*NNNNNNNNNTP*NNNNN
Patent term restoration due to admin. delaysTP*NNNNNNNNNNNNNNN
Patent term extensionTP*NNNNNNNNNNNNNNN
Protection of “undisclosed data”TPNNNNNNNNNNNNCCN
Procurement: may discrim against open tenderingCCNNNCNCNNCCNNCN
Procurement: open tendering NOT obligedCNNNNNNNNNNNNNNN
Compulsory licensing only under TRIPS termsNNNNNNNNNNNNNCCN
  1. C, TRIPS compliant; N, no specific language on provision; TP*, potentially TRIPS plus; TP, TRIPS plus.

Table 11:

Classification of IPR-Related Provisions in Chile’s Multilateral FTAs.

Partner countryChile-EUPacific AllianceP4Chile-Central AmericaChile-MercosurChile-EFTA
Specific incorporation of DOHA agreementNNNNNN
Non-derogation/affirm of TRIPSCNCNCC
National treatmentCCCCNC
Patentable subject matterNNNNNN
Revocation or cancellation of patentsNNNNNN
Patent term restoration due to admin. delaysNNNNNTP*
Patent term extensionNNNNNTP*
Protection of “undisclosed data”NNNNNTP
Procurement: may discrim against open tenderingCCCNNC
Procurement: open tendering NOT obligedNNCNNN
Compulsory licensing only under TRIPS termsNCNNNC
  1. C, TRIPS compliant; N, no specific language on provision; TP*, potentially TRIPS plus; TP, TRIPS plus.

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Published Online: 2020-02-20

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