South Korea and the United States failed to resolve sticking points relating to two-way medical trade within an envisioned free trade agreement during two-day talks here, Seoul negotiators said Tuesday.
Washington remained firm that Seoul must give fair treatment to U.S. drugs sold in the country.
"The main gist of the Washington officials' demands is that a system must be established in which international pharmaceuticals won't be discriminated against in the process of being listed as (eligible for reimbursement)," said Cheon Man-bok, director of the Ministry of Health and Welfare's FTA team, after meeting with U.S. trade officials in this Southeast Asian city-state.
Seoul is planning to revise its drug insurance policy so new drugs will not automatically be placed on a list of "positive drugs" that enables people to be reimbursed under related insurance policies.
New drugs will require strict mandatory screening by the Health Ministry to check their cost-effectiveness. More expensive products will have a smaller chance of making it to the list granting reimbursement privileges.
The ministry ultimately aims to push drugmakers to develop quality drugs at lower prices to ensure they secure a listing.
The U.S., which launched FTA talks with South Korea in early June, wants Seoul to expand access to the local pharmaceutical market, but in Seoul's planned reform, U.S. drug companies would be excluded from prescription reimbursements in the national health insurance program.
The plan became a major stumbling block during the second round of FTA talks held in Seoul last month, with U.S. negotiators boycotting talks in protest of South Korea's law aimed at offering quality drugs at an affordable price.
During the latest talks, Washington negotiators proposed a wish list of 16 agendas, which include detailed reports of the screening process by the health ministry and the establishment of an independent agency with which companies can file their objections, according to Cheon.
At the meeting, held at the South Korean Embassy in Singapore, they were also reported to ask Korea to take into account inflation when assessing the insured reimbursement costs for new drugs, while urging the country to acknowledge the value of innovative new drugs.
Officials demanded that the U.S. recognize South Korean doctors' license to practice in the U.S. and allow sales of internationally-recognized generic drugs and vaccines in the country without special authorization procedures.
The latest talks were scheduled before the third round of FTA meetings next month in Seattle. The two sides are expected to accelerate efforts to fine-tune details surrounding their pharmaceutical trade as Seoul plans to enforce the new policy within the year.
Besides pharmaceuticals, the other main areas of contention in the trade talks are the opening of the agriculture and textile markets and the country-of-origin issue regarding South Korean products made at an inter-Korean industrial complex in North Korea.
South Korea is the world's 11th-largest economy and the U.S.'s seventh-biggest trading partner. Two-way trade amounted to US$72 billion last year, with South Korea posting a surplus of $16 billion, according to South Korean government data.
Singapore, Aug. 22 (Yonhap News)
Washington calls for fair treatment of U.S. drugs in S. Korea for FTA |
