Key must rule out changes to Pharmac during US visit

John Key must rule out any trade deal with investor state disputes clauses that endanger Pharmac, Green Party Co-leader Dr Russel Norman said today.

On the last few days of his United States trip NZ Prime Minister John Key will meet with US trade representatives and United States President Barack Obama. Top of John Key's agenda will be the Trans Pacific Partnership (TPP) agreement.

"The TPP is a threat to the New Zealand health system," said Dr Norman.

"US drug companies want to charge us more for their drugs, so resent Pharmac's ability to use bulk purchasing and generics to drive down the price.

"Pharmac's buying power and ability to purchase medicine at low cost is seen as a threat to these companies' bottom lines.

"Any trade deal that threatens the drug purchasing power of PHARMAC will not be in our long term interests.

"New Zealand should also be wary of investor states disputes clauses that are inserted into deals such as the TPP," said Dr Norman.

"These clauses impinge on New Zealand's ability to make our own laws.

"The Philip Morris tobacco company is planning to use the TPP to attack our anti-smoking laws."

Dr Norman also pointed out that the recent Australia-US free trade deal had been oversold to the Australian public.

"Australia's trade deficit with the United States actually increased after Australia signed a free trade deal with the US.

"When John Key meets with the US trade lobby and President Obama he should be mindful of the recent experience of Australia," said Dr Norman.