Collateral Damage: CAFTA and the Global Campaign for High Drug Prices

Access to affordable medicines is an essential aspect of the human right to health. Trade agreement provisions on intellectual property protect brand-name pharmaceutical corporations from competition that would lower prices. Proponents of strong intellectual property (IP) protections claim they are necessary for innovation.

CPATH analyzed the intellectual property provisions of CAFTA, and related laws and regulations in Guatemala. We analyzed the current sources of funding for and distribution of medicines, and compared the drugs affected most immediately by IP rules on data protection, with those currently used in Guatemala. We concluded that several drugs are already on the market in Guatemala. Both those drugs, and those that might be newly introduced, are more expensive than therapeutic equivalents. We concluded that the domestic generic drug industry in Guatemala would be undermined by new intellectual property laws and regulations. Provisions of CAFTA prohibit effectivetechnology transfer. The ability to produce or consume innovative drugs in Guatemala will not be improved. Medicines will be increasingly unaffordable especially for public sector purchasers. Pharmaceutical sales in Guatemala are a minute fraction of global sales. Guatemala is experiencing collateral damage in the global campaign to maintain high prices in lucrative markets, particularly the U.S. Public health advocates are seeking greater influence over trade policies in the U.S. and in Guatemala.