Trade agreements threaten states' rights to control drug costs

Rising pharmaceutical prices have burdened all buyers of drugs, including individuals, states and businesses, and state governments have been on the cutting edge of cost management. State programs that facilitate importation of medicines from Canada and other countries, establish preferred drug lists to facilitate price negotiation, and otherwise use their regulatory and purchasing power for medicines have reaped huge savings. Unfortunately, certain Free Trade Agreements contain anti-health provisions which call for the abandonment of such programs. This paper examines the language in Free Trade Agreements that threatens state cost-containment programs. It then shows how trade agreements entered into by the federal government can affect the working of local-level programs administered under state law. Finally, it lists actions taken by health advocates to address the trade threat, and outlines possible future courses of action.