A top Mexican official has claimed that protections for biologic drugs are being rolled back in the pending trade deal being negotiated by the Trump administration, an apparent compromise that could attract Democratic support at the cost of the pharmaceutical industry.
At the same time, Mexico has said it would resist allowing United States inspectors into Mexican factories, a key part of the trade deal’s labor protections.
Mexico Deputy Foreign Minister Jesus Seade, his country’s lead negotiator, wrote in a column Wednesday for the newspaper El Universal that “the very high protections that were agreed to for biomedicines … are going to be moderated drastically.” The move would be a blow to the pharmaceutical industry, which had pushed for the protections in the U.S.-Canada-Mexico Agreement, which would replace the 1993 North American Free Trade Agreement.
In the same column, Seade rejected allowing transnational inspectors into Mexican factories to ensure USMCA’s labor rights provisions are enforced. Seade called that an “unacceptable” violation of his country’s sovereignty. Abandoning that proposal would mean they could “soon have a treaty, and a very good one.” In a tweet on Wednesday, Seade wrote, “I WILL NEVER accept anything that attempts against the interests + sovereignty of MX.”
Seade met privately with U.S. Trade Representative Robert Lighthizer for four hours Wednesday. He told reporters afterwards that a deal was close, “but there are things we cannot accept.” Seade told reporters in Mexico City last week that U.S. labor leaders had become emboldened, throwing off talks.
House Democrats and Trump administration officials, led by the U.S. Trade Representative’s Office, have been negotiating for months to create a compromise version of the USMCA deal. Democrats have repeatedly said they want stronger enforcement of the trade deal’s labor provisions.
Democrats have also pushed for a rollback of protections for biologics, but it was unclear whether Seade’s announcement constituted a deal. “I have no idea where we are on biologics,” Rep. Jan Schakowsky, an Illinois Democrat, told reporters. A representative for a drug industry trade association told the Washington Examiner they were not aware of any agreement.
“If those protections are diminished, it will embolden foreign governments who want to steal American intellectual property and free ride on our world-leading biopharmaceutical research and development,” the drug industry trade representative said.
Michael Zona, spokesman for Senate Finance Committee Chairman Chuck Grassley, an Iowa Republican, said the chairman and other senators support strong protections for biologics, so a change to the terms could unravel the USMCA deal. “A trade deal that passes the House of Representatives must also pass the Senate, which means members must be informed,” Zona told the Washington Examiner.
“I’m strongly urging Ambassador Lighthizer to keep that provision in,” top House Ways and Means Committee Republican Kevin Brady told reporters.
A White House spokesman declined to comment.
