Mexican Diplomats Say They Are Telling Democrats Biologics Can't Be Changed in New NAFTA

Mexican Ambassador to the U.S. Martha Barcena said several Democrats in Congress have asked her about the exclusivity period for biologics in the new NAFTA -- a provision that is also not popular in the Mexican Senate. "We accepted this in the negotiation," she said. "We may not have a perfect agreement, but it is a good agreement." She added that since biologics are the future of prescription medicines, from a Mexican perspective, "the less time of protection, the better. In a way, it was one of the big concessions of Mexico." She said that those who are opposed to the biologics provision, because they believe it will make drugs more expensive for consumers, should ask Office of the U.S. Trade Representative officials if they are willing to change it.

"To reopen the negotiation of the agreement would be to open a Pandora's Box," she said Feb. 21 at an event focused on the prospects for ratification of the U.S.-Mexico-Canada Agreement, the name of the NAFTA replacement deal. She quoted the Spanish equivalent of the English saying, "the perfect is the enemy of the good."

Guillermo Malpica Soto, who helped negotiate the NAFTA rewrite and who is head of the NAFTA and Trade Office at the Mexican Embassy in Washington, said that while there are ways of satisfying Democratic concerns on enforceability of labor provisions through implementation legislation, he thinks changing the biologics provision would be very complicated without reopening the text. "Let's take those issues to the review," he said, referring to the review that would come in six years after passage.

Barcena said Democrats who are anxious about the strength of the labor law under consideration in Mexico's legislature should wait to see what passes (see 1809280038). She said in the past, Mexican unions did not have secret ballot elections for the leadership, and she said the bill under consideration "changes quite radically" that system. Barcena said that the Mexican legislature will pass that bill before the Senate considers ratifying the new NAFTA.

But, she said, Mexico will not ratify the treaty until the steel and aluminum tariffs are lifted. She said her office is also hearing from Congress members that they won't ratify unless those tariffs are lifted on Canada and Mexico (see 1902120032).