HOUSE OF REPRESENTATIVES

H.R. NO.

108

TWENTY-THIRD LEGISLATURE, 2006

  

STATE OF HAWAII

  
   

HOUSE RESOLUTION

 

urging the united states trade representative to pursue the insertion of an interpretive note in the united states-australia free trade agreement to clarify that medicaid and pharmaceutical assistance programs under the medicare modernization act are not included in the agreement.

 

 

WHEREAS, Hawaii continues to strive to ensure that healthcare is available to all residents of the State; and

WHEREAS, managing healthcare costs is an essential component of the State's efforts to ensure continued access to a broad range of healthcare services; and

WHEREAS, the Congressional Budget Office found that the growth in prescription drug costs has outpaced every other category of health expenditure; and

WHEREAS, Hawaii has joined other states in the forefront in developing innovative solutions to combat the steep increase in prescription drug costs by taking steps to limit patent abuse, expand access to affordable prescription drugs, and implement cost containment strategies; and

WHEREAS, recent state and federal court decisions have reaffirmed the ability of states to adopt policies designed to manage prescription drug costs; and

WHEREAS, the language contained in the United States-Australia Free Trade Agreement, including Annex 2-C relating to pharmaceuticals, is ambiguous and could be interpreted by a dispute resolution panel to promote an overtly liberalized market that maximizes innovation in place of Hawaii's interests in promoting cost containment of prescription drugs; and

WHEREAS, the United States Trade Representative (Trade Representative) has assured states in writing that state programs are not covered by recent trade agreements signed by the United States; and

WHEREAS, the written assurance is not a legally binding agreement in the case of a complaint filed by a United States trading partner regarding the state administration of healthcare programs; and

WHEREAS, all trade agreements with the United States are open to an exchange of interpretive notes through which a party to the agreement can clarify the scope of a provision of the trade agreement or annex to the agreement; and

WHEREAS, these interpretive notes have the force of international law; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2006, that this body urges the Trade Representative, in consultation with the states, to pursue the exchange of an interpretive note with Australia to clarify that the state and local administration of Medicaid programs and pharmaceutical assistance programs under the Medicare Modernization Act are not included in the definition of "federal healthcare program" under Annex 2-C of the United States-Australia Free Trade Agreement; and

BE IT FURTHER RESOLVED that the Trade Representative is also urged to:

(1) Engage in discussion with the Hawaii State House of Representatives and Department of Health officials to determine which healthcare programs are covered by the Annex 2-C definition of "federal healthcare program";

(2) Carve out and protect the state administration of healthcare programs, including the purchase of prescription drugs, in all current and future negotiations of trade agreements;

(3) Respond to states' requests for support in building local capacity to understand the implications of international trade agreements relating to health; and

(4) Achieve a more coherent policy on all levels of government by consulting with states on the implications of state laws and lawmaking authority before committing to trade provisions that directly affect the state's authority;

and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the President of the United States, Speaker of the United States House of Representatives, President of the United States Senate, United States Trade Representative, members of Hawaii's Congressional delegation, and the Director of Health.

 

 
 

OFFERED BY:

_____________________________

Report Title:

United States-Australia Federal Trade Agreement; Pharmaceuticals