SYDNEY, Oct 4 (Reuters) - Australia sees a way forward to resolve a dispute with the United States over next-generation medicines that is stalling Pacific trade talks but "splitting it down the middle" on patent protections will not be the answer, Australia's trade minister said on Sunday.
Negotiators in Atlanta, Georgia worked through the night trying to broker a deal on the 12-nation Trans-Pacific Partnership, which will create a free trade zone covering 40 percent of the world economy. ID:nL1N1230H3
But a push by the United States to set a longer period of exclusivity for drug makers who develop biological drugs has run into opposition from countries including Australia and Japan and is holding up a broader deal.
Australian Trade Minister Andrew Robb told the Australian Broadcasting Corp the dispute could make or break the agreement but believed a deal could still be reached.
"It has got the potential to disrupt. We have found a bit of an impasse for several days ... But I think we are starting to find a way forward, so I'm always the optimist."
The United States allows pharmaceutical companies an exclusive period of 12 years to use clinical data behind the approval for a new biological drug.
The Obama administration had previously proposed lowering that threshold to seven years but has pushed a proposal for an eight-year minimum at the TPP talks in Atlanta.
Australia, along with others such as New Zealand and Chile, have been unwilling to offer more than five years protection for the medicines, since longer terms will push up the cost of state-subsidized medical programs.
"You know, just splitting it down the middle is not the answer, and we've had to try to work through that," Robb told the ABC. "If we don't, it will have a major impact on whether we conclude or not."