News Analysis: Mexicans look to TPP talks with concerns over secrecy, biotechnological drugs

In Mexico, there have been concerns among the public about the fact that the Trans-Pacific Partnership (TPP) negotiations have largely been shrouded in secrecy, while the introduction of biotechnological drugs to the Mexican market has become a flashpoint.

Mexico must be more transparent about these sensitive and complex issues, said Manuel Valencia, director of academic programs for international business at the Monterrey Institute of Technology's Santa Fe campus.

"Transparency is what Mexican workers and entrepreneurs deserve, after the good, the bad and the ugly of NAFTA (North American Free Trade Agreement). The TPP is an entirely new agreement but Mexico must demand more openness about areas like the mobility of workers and the exchange of services," he said.

In theory, the TPP will promote the global competitiveness of Mexico's production plants and will encourage Mexican exports to the U.S. and Asia.

"Many things are part of the National Development Plan that are not made and are not realized, this is a political promise that goes beyond and I think that is most relevant. Mexico is committed to a group of developing countries with high competitiveness through a trade agreement, "said Valencia.

FLASHPOINT ON DRUG PATENT PROTECTION

On July 31, the latest negotiating round for the TPP ended in Hawaii, after key issues such as agricultural market access and patent protection for biological products were discussed among ministers.

The give and take of the negotiations saw Mexico accept that companies from six of the TPP nations will be able to take part in government purchases and tenders without hindrance. Similarly, it came under pressure to open up its agricultural market to products from Australia and New Zealand.

Another major sticking point has been the introduction of biotechnological drugs to the Mexican market. Current Mexican law provides patent protection of just five years to any drugs. Big pharmaceutical countries have submitted to this, allowing the Mexican public health system to access drugs after that time-frame and the country to develop a booming generics market.

However, the argument is that biotechnological drugs need a longer period of patent protection, given the cost spent on developing them.

Therefore, in its current form, the TPP stipulates a protection of 12 years for biotechnological products. Mexico and other TPP countries oppose this new regulation, saying the price tag on important medications would remain sky high.

This is one of the most remaining issues in which Mexico is still holding up the TPP. It seems unlikely this could be resolved without consulting the concerned Mexican health system.

"Any trade agreement must see a symmetrical relationship created (between) developed countries and emerging economies," Gonzalez y Sanchez said, adding that the TPP rules should also comply with those of existing blocs such as the Pacific Alliance, which includes Mexico, Peru, Colombia and Chile.

However, he stressed that this should not "break down the TPP talks," but help to improve them.

"Despite the secrecy of the negotiations, the process must be negotiated in each country with entrepreneurs and all relevant parties in sectors covered by the agreement," he argued.

TPP PARTICIPATION QUESTIONED

Luis Lozano Arredondo, professor of economics at the National Autonomous University of Mexico (UNAM), believes Mexico's FTAs make its participation in the TPP unnecessary.

"Mexico first has to comply fully with its previous agreements. In the case of the TPP, we must be very careful with how Mexico manages its relationships and the potential economic turmoil that could arise," he told Xinhua.

In his view, this treaty puts Mexico "at a disadvantage" as many clauses favor more developed countries and would cause imbalance in the flow of goods to the detriment of developing economies.

Those drafting the TPP "hope the treaty will lead to growth of almost 8 percent in the Asia-Pacific region. However, we doubt this will happen as our own studies conclude only the top economies will grow by about 4 percent due to the deal," said Lozano Arredondo. Endi