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Drug spat stalls Australia-US free trade deal

AFP,  August, 2004  

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CANBERRA (AFP) — A long-awaited Australia-US free trade agreement (FTA) hit a new snag in Canberra, just hours after US President George W. Bush reaffirmed Washington's commitment to a pact he called "a milestone in the history of our alliance".

Prime Minister John Howard rejected opposition demands for additional safeguards to stop US pharmaceutical giants dismantling a scheme guaranteeing Australians access to cheap drugs.

The impasse now positions the controversial FTA as a major issue in this year's national elections.

The opposition Labor Party said its suggested amendment would prevent US drug companies from abusing Australian patent provisions in order to stop cheap generic drugs reaching the market.

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Howard said existing safeguards were sufficient and caving in to the ammendment would result in "bad law".

"We're not willing to provide a political fix for our opponents, we're not willing to turn the patent law of this country ...