CONCERN GROWING OVER PROPOSED FTA BETWEEN PERU AND THE US

Both officials from the UN and French-based pressure group Medecins Sans Frontiéres have expressed concerns about the impact that a proposed free trade agreement (FTA) between the US and Andean countries could have on drug access for patients in Peru. A recent government study has suggested that if the FTA goes ahead Peruvians could end up spending an average of US$29 extra on drugs per year. By 2015, it is estimated that drug prices could rise by 60% over current levels.

The Peruvian government has promised to offset any price hikes with compensatory counter-measures and has pointed out that an FTA between Chile and the US, in 2004, has not resulted in significant price rises for medicines. Peru's relatively poor population relies on a supply of low-cost branded copy drugs. It is yet to be seen whether Peru's government will take measures to stem this flow, which could prove to be dangerous politically.