ABC Radio, AM
KIM LANDERS: Trade Minister Steven Ciobo has just held a meeting with Senator Orrin Hatch in Washington. Minister, good morning.
STEVEN CIOBO: Good morning.
KIM LANDERS: You've heard powerful Republican Senator Orrin Hatch saying 'Australia effectively wants to steal US patents'. Did he put it that bluntly when you met him?
STEVEN CIOBO: No, look, it was a very constructive meeting. Obviously Australia is pursuing the Trans Pacific Partnership (TPP) because it's good for Australia. It's also good for all 12 countries that are involved in a regional trading bloc like that. Senator Hatch is, of course, a very important player in terms of what will happen with respect to the TPP in terms of the United States. So the chance to meet with him was an important opportunity to just canvas different issues.
KIM LANDERS: He wants the patents on this new class of medicines to be protected for 12 years, not five. President Obama too seems to be open to that. Could Australia agree to that?
STEVEN CIOBO: Let's be very clear - the Australian health system is one of the best health systems in the world. It's not for changing and so I made that point very clear. There's a hard stop in terms of our commitment - that is the Coalition's commitment to Medicare and to the health system more generally.
KIM LANDERS: But do you think you've done anything to persuade Senator Hatch, who is a very powerful member of the US Congress, to change his mind on this point?
STEVEN CIOBO: Look, I think it's part of an ongoing conversation. Clearly the clock is ticking. I'm not going to pretend that it's not getting close to midnight with respect to the United States Congress consideration of the Trans-Pacific Partnership. Senator Hatch is arguably one of the most important players with respect to the passage of the TPP. That's why taking the chance to sit down with him, to speak with him about his concerns, to raise our concerns but most importantly, to reflect on the fact that Australia and the United States have a very strong relationship. We've both committed to doing what we can to pursue each other's national interests.
KIM LANDERS: But that strong relationship aside, Senator Hatch is saying if the TPP doesn't pass the US Congress before President Obama leaves office, we're going to have to start this whole process over again. So is the TPP as we know it, dead?
STEVEN CIOBO: No, it's certainly not dead and that's certainly a process that nobody wants to go through. I mean the chance for the Trans-Pacific Partnership to be passed by the US Congress is through the so-called lame duck session, that is following the presidential election and prior to the inauguration of a new president so it was in that context that as Minister for Trade for Australia, I wanted to make sure that we had the conversation, address concerns that exist, address them directly, square on and meeting with Senator Hatch was an important part of that process.
KIM LANDERS: You say that the clock is ticking though. What are the chances of getting the TPP through the Congress?
STEVEN CIOBO: Look, there's a strong sense of goodwill on all sides with respect to the TPP. I understand concerns the Americans have, that's why highlighting the strength of Australia's health system, the strength of Medicare, our PBS (Pharmaceutical Benefits Scheme) system and other safeguards that are in place, highlighting to the Americans about why that works effectively but also reassuring them that it does create the incentive for pharmaceutical companies and others to also continuing in investing.
KIM LANDERS: Minister, we've spoken a lot about the US political situation but here in Australia we have a new Senate. It's got members like the Nick Xenophon team for example who oppose the TPP so could this deal unravel in our own Parliament?
STEVEN CIOBO: Well, I certainly hope not. The fact is that trade deals are good for Australia. I recognise some Australians harbour concerns, I recognise that there have been some members or prospective candidates who have talked down the benefits of engaging in trade –
KIM LANDERS: So have you been trying to talk to people like the Nick Xenophon team to assure them that the TPP is the way to go for Australia?
STEVEN CIOBO: Well, look, I know Senator Xenophon very well. We've working closely, sometimes on the same side of the coin, sometimes on opposite sides of the coin with respect to various issues over the years. I want to make it very clear that I intend to engage in a very open manner with all senators, anybody who would like to have conversations about why these trade deals are good for Australia, are good for Australians wanting jobs, are good for investment in Australia and importantly, are good for Australian businesses that want to expand overseas. I will continue to do that because it is a fundamental fact and we know that from world bank studies, that countries that open themselves up to trade typically enjoy a one, one and a half to two per cent extra gain in GDP growth as a result of being open to the world. It flies in the face of the last 30 years of global economic history and it will in fact lead to worse outcomes, not better.
KIM LANDERS: Minister, thank you very much for joining AM from Washington.
STEVEN CIOBO: A pleasure, thank you.
KIM LANDERS: Trade Minister Steven Ciobo.
[ends]