The People Can Defeat the Trans-Pacific Partnership
Time to end the failed experiment with rigged corporate trade and put in place fair trade for the people and planet before profits
By Kevin Zeese and Margaret Flowers | The People’s Voice | November 14, 2013
Momentum is growing in the campaign to stop the Trans-Pacific Partnership (TPP). Yesterday, the TPP was dealt two blows. Each could be lethal but the TPP, and its Atlantic counterpart, called TAFTA, are not dead yet. It is time for the movement of movements that formed to oppose the TPP to stand in solidarity, defeat these agreements and end the era of rigged corporate trade.
Yesterday’s first blow came from Wikileaks, showing once again that when government works in secret with big corporations, exposure by whistle blowers is critical to changing the corrupt direction of government and the economy. Wikileaks published the full text of the intellectual property chapter; the leaked document included the positions of all the parties. It will take time for all the corporate rigging in this lengthy document to be understood, but already it is evident that Internet freedom will be curtailed, access to health care will become more expensive and access to information will be undermined.
This is not the first leak of TPP text. Previous leaks are consistent with the Wikileaks leak – enhanced corporate power that puts profits before the needs of the people and the protection of the planet. The Wikileaks release shows that the United States is by far the most aggressive advocate for trans-national corporate interests, often isolated in pushing for harmful policies.
The second blow came from members of the U.S. House of Representatives. In recent days, several letters were sent to President Obama opposing Fast Track Trade Promotion Authority. Fast Track undermines Congress’ responsibility under the Commerce Clause to regulate trade between nations by allowing the president to sign the agreement before Congress even sees it. The letters made public on November 13th demonstrate broad bi-partisan opposition to Fast Track with 179 Members signing at least one of the three letters.
A letter spearheaded by Rep. Rosa DeLauro (D-CT) and Rep. George Miller (D-CA) garnered the support of three-quarters of House Democrats with 151 Members telling President Obama they oppose Fast Track, writing:
We will oppose ‘Fast Track’ Trade Promotion Authority or any other mechanism delegating Congress’ constitutional authority over trade policy that continues to exclude us from having a meaningful role in the formative stages of trade agreements and throughout negotiating and approval processes.
Important leaders of the Democratic Party signed the letter including 18 out of 21 Ranking Members who would chair committees if the Democrats were in the majority. This means that to pursue Fast Track authority, President Obama will need to challenge three-quarters of his own party.
But, that is not all. In another letter, organized by Mike Thompson (D-CA) and Earl Blumenauer (D-OR) and signed by 12 of the 16 Democratic Party members of the Ways and Means Committee, which is primarily responsible for Fast Track legislation, members expressed opposition to Fast Track unless it was radically different from previous grants of authority. The letter says it “cannot just be an extension of earlier trade promotion authorities. Any new proposed TPA must . . . ensure Congress plays a more meaningful role in the negotiating process.”
And, the opposition is bi-partisan. Rep. Walter Jones (R-NC) and Rep. Michelle Bachmann (R-MN) drafted a letter signed by 23 Republicans. The Republican letter emphasized that Congress has the “exclusive authority to set the terms of trade.” Further, “The Founders established this clear check and balance to prevent the president from unilaterally negotiating with foreign nations and imposing trade policies that Congress would deem to be against the national interest.” They write that they refuse to “cede our constitutional authority to the executive” through Fast Track.
These are just the latest problems in the quest for Fast Track, indeed a bill has yet to be introduced. The previous US Trade Representative, Ron Kirk, said in 2012: “We’ve got to have it.” He wanted the authority by the end of 2012. In April, Sen. Max Baucus (D-MT) promised Obama Fast Track by June of 2013. The broad bi-partisan opposition announced this week shows that winning Fast Track has very little support in Congress. In fact, the letters may be the death knell for such legislation.
The Wikileaks documents show there is a lot of division among the negotiating nations with important disagreements on key aspects of the text. Without Fast Track to guarantee passage of the TPP, these nations will be even less likely to agree to demands by the U.S. Further, Asian countries are negotiating their own competing agreement, which does not include the United States but, unlike the TPP, does include China.
Latin American countries are also speaking out against the TPP. Earlier this year, Rodrigo Contreras, Chile’s lead TPP negotiator quit to warn people of the dangers of the TPP – highlighting how big financial institutions will dominate their governments and how the TPP “will become a threat for our countries: It will restrict our development options in health and education, in biological and cultural diversity, and in the design of public policies and the transformation of our economies. It will also generate pressures from increasingly active social movements, who are not willing to grant a pass to governments that accept an outcome of the TPP negotiations that limits possibilities to increase the prosperity and well-being of our countries.” And, recently the Parliament of Peru passed a resolution “requesting that the government open a ‘public, political, and technical debate’ on the binding rules being negotiated in the TPP.”
In the United States, cities and counties are beginning to pass TPP Free Zones, saying they will not obey the TPP if it becomes law. These local governments are concerned with provisions that would not allow them to give preference to buying local, buying U.S. made goods or other provisions that undermine their sovereignty.
In addition to opposition in the U.S. government and foreign governments, a mass citizen uprising is developing against the TPP. There have been large protests in many of the countries involved in the negotiations as well as in the United States. The night before the Wikileaks documents were released, 13 cities did visibility protests opposing the TPP in light shows. In September we joined with activists in Washington, DC in a series of protests, including covering the office building of the US Trade Representative in banners to expose their secret trade agreement. Protests are scheduled for Salt Lake City, UT on November 19th where lead negotiators from 12 countries will hold meetings. A global day of protest is planned for December 3 against not only the TPP but also the WTO and all toxic trade agreements.
The TPP is running into resistance in Congress, local governments and among Pacific nations in Asia and Latin America; and by people who oppose the agreement all over the world. This is part of a growing movement of movements – all of the movements impacted by corporate trade; e.g. labor, environmental, Internet freedom, health care, food sovereignty, immigrants’ rights, banking regulation – are joining together to defeat it.
The people are winning. Fourteen trade agreements have been stopped in the last 14 years and as Tom Donohue of the US Chamber of Commerce wrote this week “the WTO has not concluded a single new multilateral trade agreement since it was created in 1995.” Mass protest against rigged corporate trade agreements can end the experiment in trade that puts profits ahead of the people and planet.
We are on the verge of defeating Fast Track. It is important that we keep the pressure on Congress. Neither the TPP nor TAFTA will become law if people learn what is in them and Congress fulfills its constitutional responsibility to review their impact. Denying the President Fast Track is the essential step to defeat both of these agreements.
Once we defeat Fast Track and prevent TPP and TAFTA from becoming law, we need to remain in solidarity and work to transform trade so it becomes “fair” trade that puts the necessities of the people and the protection of the planet first. The people will have firmly established that they will not tolerate rigged corporate trade deals. If corporations want to see trade between nations, they need a new approach – transparent, participatory and fair – with new goals of serving the people and planet.
To get involved in the campaign to stop the Trans-Pacific Partnership visit Flush the TPP.
Kevin Zeese, JD and Margaret Flowers, MD co-host Clearing the FOG on We Act Radio 1480 AM Washington, DC, co-direct Its Our Economy and are organizers of the Occupation of Washington, DC.Their twitters are @KBZeese and MFlowers8.
Clean-up doubts: Many Fukushima evacuees may never return home
RT | November 13, 2013
Many of the people who were forced to evacuate after the 2011 triple meltdown at the Fukushima nuclear power plant may never return, Japanese lawmakers admitted, overturning initial optimistic government pledges.
A call to admit the grim reality and step back from the ambitious Fukushima decontamination goals came from Prime Minister Shinzo Abe’s coalition parties. Japan has so far spent $30 billion on the clean-up program, which has proven to be more difficult to carry out than initially expected.
The new plan would be for the government to fund relocation to new homes for those who used to live in the most contaminated areas.
“There will come a time when someone has to say, ‘You won’t be able to live here anymore, but we will make up for it’,” Shigeru Ishiba, the secretary General of Abe’s Liberal Democrat party said in a speech earlier this month.
On Tuesday, evacuees reacted with anger at the government’s admission.
“Politicians should have specified a long time ago the areas where evacuees will not be able to return, and presented plans to help them rebuild their lives elsewhere,” Toshitaka Kakinuma, a 71-year-old evacuee, told the Asahi Shimbun newspaper.
Some 160,000 people escaped the vicinity of Fukushima Daiichi, when a powerful earthquake and tsunami transformed the plant into the world’s worst nuclear disaster since Chernobyl. About a third of them are still living in temporary housing. They were promised that this would not last for longer than 3 years.
In August the death toll among the evacuees surpassed the threshold of 1,599 lives, which is how many people in the prefecture were killed by the disaster itself. The displaced residents are suffering from health problems, alcoholism and high rates of suicide.
The Ministry of Environment wanted to decontaminate 11 townships in the affected area, bringing the average annual radiation dose to 20 millisieverts, a level deemed safe by the International Centre for Radiological Protection. It further pledged to pursue a long-term goal reducing it to 1 millisievert per year.
The clean-up, however, has been marred by delays and reports that workers sometimes simply dumped contaminated waste rather than collect it for safe storage, causing the environment ministry push back the deadline. There are also calls on the government to abandon the more ambitious dose target, arguing that it is unrealistic.
Some evacuees said they wouldn’t return even after the first phase of the cleanup, saying the dose of 20 millisieverts per year still poses health risks.
“No matter how much they decontaminate I’m not going back because I have children and it is my responsibility to protect them,” Yumi Ide, a mother of two teenage boys, told Reuters.
The fear of radiation has soared in Japan in the wake of the Fukushima disaster, with rallies against the use of nuclear power scoring record attendance. The government shut down all 50 remaining Japanese reactors for safety checks, and there is strong pressure to keep them offline.
The Japanese government is reportedly seeking to borrow an extra $30 billion for the Fukushima cleanup and compensations, which would raise the total cost of the disaster response to $80 billion. The figure does not include the cost of decommissioning reactors to be carried out by the plant operator, Tepco. The company recently complained about the huge expense of the process, which may last at least 30 years.
House Votes to Protect Citigroup if It Gambles and Loses
By Noel Brinkerhoff and Danny Biederman | AllGov | November 12, 2013
One of the nation’s leading banks wants Congress to amend federal law adopted in the wake of the 2008 financial crisis so it and other Wall Street institutions can go back to gambling with risky investments and have taxpayers cover the losses again if they bet wrong.
Under the Dodd-Frank Act of 2010 (pdf), banks can no longer use monies backed by the Federal Deposit Insurance Corporation (FDIC) to invest in high-risk derivatives, such as “swaps.” This prohibition was adopted because derivatives crippled numerous key players on Wall Street five years ago, including Countrywide Mortgages, Bear Stearns, AIG, Lehman Brothers, Washington Mutual, Wachovia and others.
One of those “others” was Citigroup, which had to be bailed out by the federal government to the tune of $45 billion. A Citigroup lobbyist, though, was primarily responsible for authoring the Swaps Regulatory Improvement Act, which was approved by the U.S. House of Representatives two weeks ago.
The bill would wipe out Section 716 (pdf) of Dodd-Frank that requires banks to use a non-bank entity for trading commodity, energy and other swaps. In other words, if the legislation becomes law, financial institutions could return to conducting high-risk trading with funds that are backed by the FDIC (i.e. the taxpayer).
Dennis Anderson, who’s running for Congress from Illinois, says “to propose an easing of the controls on such behavior is irresponsible.”
“The behavior of these large banks and financial institutions cost all of us in loss of value in our retirement accounts, in lowered property values and, most importantly, in the general and deep recession that followed the failure of their gambling,” Anderson wrote at Daily Kos. “The idea of ‘too big to fail’ is still with us, and has grown even more threatening as these institutions have continued to grow.”
Citigroup was responsible for recommendations made in 70 lines of the 85-line bill, according to Eric Lipton and Ben Protess of The New York Times. In fact, reported the writers, a couple key paragraphs in the bill had been copied word for word from Citigroup’s submitted draft, which it had developed in conjunction with other Wall Street banks.
The legislation cleared the House on a 292-122 vote that saw 70 Democrats join all but three Republicans. Republicans voting against the measure were Representatives John Duncan of Tennessee, Walter Jones of North Carolina and Thomas Massie of Kentucky.
One of the Democrats supporting the change was Representative Carolyn Maloney of New York, the second-ranking Democrat on the House Financial Services Committee. She told The Hill that the bill would “protect safety and soundness,” per Federal Reserve Chairman Ben Bernanke.
“Even Federal Reserve Chairman Ben Bernanke opposed Section 716 as written, stating that the way it forces these activities out of insured depository institutions ‘would weaken both the financial stability and strong regulation of the derivatives activities,’” she said.
Bernanke has supported certain changes to the law, but never backed the Citigroup bill, according to the Times.
The White House said it opposes the bill, noting that the law is still being implemented by regulators. Legislation to amend it is “premature and could be disruptive and harmful to the implementation of these reforms,” it added.
Only about 40% of the rules required by the law have been implemented to date. Whether the Citigroup bill passes or not, such attempted legislation has “a chilling effect on regulators,” according to the Times.
“After inflicting so much pain and suffering on the American people, now is not the time to let the largest banks back into the casino,” Representative Maxine Waters (D-California) said in a statement.
Why are so many other Democrats supporting a bill that the Obama administration opposes? House aides interviewed by the Times theorized that “Republicans have enough votes to pass it themselves, so vulnerable House Democrats might as well join them, and collect industry money for their campaigns,” wrote Lipton and Protess.
Indeed, lawmakers who currently support bills advocated by big banks have, this month, received double the amount of donations from Wall Street firms as those who opposed such bills, according to MapLight, a nonprofit group that analyzes campaign financial records.
Additionally, Wall Street has, in the past few weeks, hosted special fundraisers for the bills’ co-sponsors.
A Democrat who supports the industry bills and is a top cash recipient of Wall Street—Representative Jim Himes of Connecticut, who was once a Goldman Sachs banker—confessed that the “system” has “problems.” “It’s appalling, it’s disgusting, it’s wasteful and it opens the possibility of conflicts of interest and corruption,” he told the Times. “It’s unfortunately the world we live in.”
To Learn More:
Heard about the Swaps Regulatory Improvement Act (H.R.992 – 113th Congress)? (by Dennis Anderson, Daily Kos)
House Votes for Bipartisan Change to Dodd-Frank on Bank Swaps (by Pete Kasperowicz, The Hill)
House, Set to Vote on 2 Bills, Is Seen as an Ally of Wall St. (by Eric Lipton and Ben Protess, New York Times)
Banks’ Lobbyists Help in Drafting Financial Bills (by Eric Lipton and Ben Protess, New York Times)
Report: Fewer than 50K have signed up at HealthCare.gov
By Elise Viebeck | The Hill | November 11, 2013
Fewer than 50,000 people have successfully purchased private healthcare coverage using the struggling ObamaCare enrollment site, according to a report.
The figure represents about one-tenth of an initial enrollment target from the Obama administration that has been referred to by Republican lawmakers.
The report by the Wall Street Journal, citing two people familiar with the matter, comes as federal health officials prepare to release official sign-up figures from healthcare.gov for the first time later this week.
The administration has sought to lower expectations about the number, noting problems with HealthCare.gov and consumers’ tendency to purchase health coverage close to deadlines.
Health insurance companies serving the federal marketplaces have received data for between 40,000 and 50,000 enrollees, sources told the Journal.
The administration had hoped to sign up 500,000 people in the month of October, according to documents cited by House Ways and Means Committee Chairman Dave Camp (Mich.), a Republican.
Monday’s release was part of a flurry of estimates shedding light on aspects of ObamaCare enrollment.
Consulting firm Avalere Health reported that about 50,000 people had signed up for either private plans or Medicaid on 12 state-run marketplaces.
The administration and healthcare experts caution that early lags in enrollment can be rectified by big waves later on.
“Enrollment in new programs begins slowly and often takes several months to build momentum,” said Avalere CEO Dan Mendelson in a statement.
“While initial enrollment has been lagging, with aggressive marketing, there is still time for awareness of the program to grow and participation to begin.”
The Health and Human Services (HHS) Department said it could not confirm the Journal’s numbers.
“We have always anticipated that initial enrollment numbers would be low and increase over time,” said HHS spokeswoman Joanne Peters in a statement, citing Massachusetts’ experience with its healthcare reform law.
“As we have said, the problems with the website will cause the numbers to be lower than initially anticipated.”
Australia Spied On Japanese Companies To Help Its Industries Negotiate Trade Deals
By Glyn Moody | Techdirt | November 12, 2013
As more information comes to light about the global snooping being conducted by the NSA and GCHQ, it is becoming clearer that much of it had little to do with combating terrorism, as a recent EFF article makes plain. But most damaging to the idea that massive surveillance was justified, because it was to protect people from extreme threats, is the revelation that commercial espionage was also being conducted. So far, the chief example of that is in Brazil, but The Sydney Morning Herald (SMH) now has information about large-scale industrial spying on Japanese companies carried out by Australian secret services:
BHP [BHP Billton — the world’s largest mining company] was among the companies helped by Australian spy agencies as they negotiated trade deals with Japan, a former Australian Secret Intelligence Service officer says.
A former diplomat has also confirmed Australian intelligence agencies have long targeted Japanese companies. Writing in The Japan Times, Professor Gregory Clark said Australian companies were beneficiaries of intelligence operations.
“In Australia, favoured firms getting spy material on Japanese contract policies and other business negotiations used to joke how [it had] ‘fallen off the back of a truck’,” Professor Clark wrote.
The article has more details, but doesn’t reveal how the materials were obtained. However, since Australia is part of the “Five Eyes” inner circle of snooping countries that also includes the US, UK, Canada and New Zealand, it seems likely that information of interest from those partners also found its way to Australian companies. SMH quotes Clark as saying:
Business information is a main target for [intelligence] agencies
It will be interesting to see if later releases from Snowden’s hoard of documents show any evidence of this Australian use of NSA materials for industrial espionage.Follow me @glynmoody on Twitter or identi.ca, and +glynmoody on Google+
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EU-US historic trade deal: ‘Putting the corporation above the nation’
RT | November 11, 2013
The successful adoption of the EU-US trade agreement promises both parties massive gains of up to $159 billion, but the profits could come at the expense of the everyday consumer, who could see the quality of their products diminish as a result.
Over 50 US officials are in Brussels to negotiate the Transatlantic Trade and Investment Partnership (TTIP), which, if signed, will create the world’s largest free-trade area, which has also been dubbed an “economic NATO”. Officials meeting in Brussels this week will hammer out details to reduce trade limiting regulations.
The new round of talks will focus on reducing trade barriers on investment, energy, services, and raw materials, and key agreements will be announced Friday.
‘Non-tariff barriers’ increase the cost of business, whether it’s adjusting the voltage on an electronic device, changing a car’s exhaust system to comply with local environmental regulations or a difference in opinion of which chemicals are “harmful” or “hazardous” in the respective territories.
By limiting health, safety and environmental regulations in order to boost trade, the US and EU are “putting the corporation above the nation,” Glyn Moody, journalist and author, told RT in an on-air interview.
“That’s a very big assumption. People may not want to have their food less safe or environment polluted for the sake of more money,” Moody told RT.
Moody also warns the trade agreement could behoove giant corporations like Monsanto, who could use the new ‘de-regulation’ to sue the EU for billions of dollars if they refuse to import GMO products
The EU says the TTIP could bring annual benefits of $159 billion (€119 billion) to its 28 member states. This breaks down to an extra $730 (€545) in disposable income for a family of four in Europe and an extra $875 (€655) per family in the US, according to a March 2013 study on “Reducing Transatlantic Barriers to Trade and Investment”.
There would be fewer constraints and companies will benefit, but “the public will pay in terms of regulation reduced protection and that is never calculated in these trade agreements, it’s always about the bottom lines of the big companies,” Moody said.
The week-long round of negotiations were originally scheduled for October but postponed due to the US government shutdown.
On December 16-20 officials will meet in Washington DC for another round of talks. The first round was held in Washington in July after the G8 Summit in Northern Ireland.
The Perks
The trade flow of goods and services between the two blocs reached about $2.7 billion per day in 2012, according to the US Office of Trade and Commerce. Total trade in 2012 was $647 billion.
The agreement could boost employment on both sides of “the pond”, as increasing exports usually creates more jobs.
The European Commission has brazenly promised the deal could boost gross domestic product in the dilapidated EU by 1 percent.
Auto trade will especially benefit from jettisoning regulations. Turnover between the US and Germany could double if the trade agreement makes more umbrella standards- for example, if a car is crash-tested in America, it need not be again tested in Europe.
North America is an important destination for Foreign Direct investment, and is home to about one third of European foreign direct investment. Investment activity between the EU and US suffered after the financial crisis in 2008, and both sides will also try to find a balance on trade regulation to save big bucks.
Broken trust
Limited trust over the fall out of the NSA spying scandal may also put a hamper on negotiations between the trade giants.
The feasibility of the deal came under question after NSA whistleblower Edward Snowden leaked information showing the extent of espionage on allies abroad. France announced the wanted to temporarily postpone the talks over snooping, but they proceeded as planned.
The spying row shouldn’t affect US-EU trade talks, US Secretary of State John Kerry said as the trade partnership is “really separate from any other issues”. The US hasn’t provided any guarantees it will curb spying on its allies.
US, France playing good cop-bad cop in Iran talks
RT | November 9, 2013
America and France are playing ‘good cop-bad cop’ in the P5 + 1 talks with Iran over its nuclear program, so that Washington’s position would sound more reasonable, Robert Harneis, a journalist and political analyst has told RT.
Six major world powers and Iran are holding negotiations in Geneva over Tehran’s highly-disputed nuclear program.
RT: France seems to be the most skeptical of the negotiating nations about the outcome of the talks. What’s behind its skepticism?
Robert Harneis: It is always a little difficult to understand the position of the French here. They seem to take an extreme position all the time. There are a number of reasons for this. The first is that they are playing ‘good cop-bad cop’ with the Americans. Obama is suddenly being much more reasonable in his attitude with the Iranians, and the French are out there on the flank saying “Oh, you mustn’t agree too easily, Israel must be protected,” and so on. In a sense that’s, if you like, playing the game of the Americans so that they can sound more reasonable, the French sound more unreasonable.
There is another factor, which is that everybody knows the enormous pressure of the Israeli lobby in America. It’s not quite so well-known that it’s pretty considerable in France as well.
RT: The French Foreign Minister said Israel’s position must be taken into consideration. Why such concern for Israel when even Washington called Netanyahu’s condemnation of the deal ‘premature’?
RH: Yes, it’s interesting, isn’t it, that Mr. Netanyahu has said that the deal had been concluded. Everybody else is saying it hasn’t. At any rate, the position of the French, I think, is to say things that the Americans don’t want to say at the moment. I think that’s at the bottom of it, because frankly this posturing by the French President and the French Foreign Minister makes France look pretty ridiculous on the domestic front. There is a great deal of mockery of Laurent Fabius and his very aggressive statements internally in France.
RT: We’re used to the US being one of Tehran’s harshest opponents. Do you feel that Washington’s stance is genuinely changing?
RH: Well, one would like to hope – let’s put it this way – that this is a real diplomatic revolution. The Americans ever since 1979, when the embassy drama took place in Iran, have had this slightly ridiculous, slightly vengeful obsession about dealing with the Iranian nuclear threat.
As far as anybody can tell and as far as the American security services themselves say, there is no Iranian nuclear threat. The Israelis, on the other hand, have 300 nuclear weapons. So the situation is a trifle absurd as it often is with western foreign policies.
And there are signs Obama is trying to put American foreign policy on a more sensible track. Why not have sensible relations with Iran – this is being asked in the US after all. For years, with the threat of the Soviet Union, they had no difficulty negotiating with [Mikhail] Gorbachev and men a lot more difficult than him. So, why can’t we negotiate with Iranians? Why do we have to take this ridiculous attitude that they cannot have what France, Britain, the US have – which is nuclear protection. And the Iranians say they don’t want it anyway.
So, it’s a difficult one to quite work out. But it could be that there is a real revolution taking place and the Americans are going to change their stance because they need to do business with Iran really.
RT: Finally, what are your personal predictions? Will the sides involved manage to overcome their disagreements and strike a deal in the near future?
RH: Well, if I had to take my reputation as profit on the line, I would say that there is going to be a deal. Because they are, after all, talking only about a six-month deal, as far as we can understand it. A suspended sentence, so to speak. With the problems of gas pipelines from Iran to Europe, which Europe needs badly for its Nabucco pipeline – which has no gas without the Iranians – I think there is a very strong probability. And they’d just love to get in there and have all the contracts for rebuilding Iran. So, I hope it’s a real revolution.
The Withering of Big Pharma?
By Martha Rosenberg | Dissident Voice | November 7, 2013
It used to be when a drug company settled illegal marketing charges that millions took its drugs under false pretenses, the news would be released on a Friday afternoon when no one would notice. That was then. Now almost all the drug companies have joined the Off label/Kickback club and the public doesn’t seem to notice or care.
On the surface, Johnson & Johnson’s $2.2 billion settlement this week for illegally marketing drugs to the elderly, children and the mentally disabled looks like a victory. J&J’s subsidiary, Janssen Pharmaceuticals, will plead guilty to illegally promoting the antipsychotic Risperdal for “controlling aggression and anxiety in elderly dementia patients and treating behavioral disturbances in children and in individuals with disabilities,” reports Reuters. The promotions included a brazen kickback scheme to Omnicare Inc, a pharmacy supplying nursing homes, exposed by a whistleblower.
At least 15,000 elderly people in nursing homes die a year from drugs like Risperdal said FDA drug reviewer David Graham in Congressional testimony a few years ago. Eli Lilly who makes the similar drug Zyprexa and AstraZeneca who makes Seroquel have also settled charges that they churned the elderly drug market at the price of Grandma and Grandpa’s lives.
But it is not a victory. J&J made $24.2 billion off Risperdal from 2003 to 2010 and shareholders won’t even notice this week’s nano loss. J&J milked Risperdal for all it was worth and the patent had already run out by the time it was charged with illegal schemes. Other drug giants charged with illegal marketing schemes–Abbott for Depakote, Pfizer for Bextra, Eli Lilly for Zyprexa, AstraZeneca for Seroquel, GlaxoSmithKline for Paxil and Merck for Vioxx–also got their money’s worth before the trivial nuisance of suit. Many, like Pfizer who illegally marketed its seizure drug Neurontin while under probation for illegal Lipitor activities–are brazen and shameless repeat offenders.
Many say the only justice that will get Big Pharma’s attention is frog marching the CEOs off to prison and/or cutting them off from their lucrative public trough of Medicare, Medicaid and military health programs.
Still, Big Pharma’s audacious business plan of asking forgiveness not permission is winding down. Not because Pharma, prescribers, consumers, regulators and health officials have seen the light but because there are no more big drugs to pimp. An estimated 100,000 workers will be losing their jobs at Pfizer, Sanofi, Roche, GlaxoSmithKline, AstraZeneca and Merck reported Yahoo finance last month.
Only two new drug campaigns seem to be brewing and they require a major suspension of reality on the part of doctors and patients. One tries to convince people with low back pain they actually suffer from ankylosing spondylitis an arthritis-like condition that causes chronic inflammation of the spine. If your spine is stiff when you wake up in the morning you can take an immune suppressor like Humira which puts you at risk of tuberculosis and lethal viral, fungal and bacterial infections while costing you $12,000 to $17,000 a year. Line forms to the left.
The other, even more brazen campaign, tries to convince people with insomnia, tiredness during the day, moodiness and relationship problems that they actually suffer from Non-24-Hour Sleep–Wake Disorder, a disorder that affects mostly blind people. You don’t have to be blind to have the disorder, says the new Pharma message even though there have been fewer than 100 cases of sighted people with non-24 reported in the scientific literature. It sounds like a stretch but so did convincing people with job, money and marriage problems they really had depression or bipolar disorder.
Still it is obvious the bloom has fallen off the Big Pharma rose and it is now paying the piper for the high-flying party with drug settlements like Johnson & Johnson’s this week. But that doesn’t mean shady marketing, hidden risks, kickbacks and outrageous prices are gone from the medical field. They have just moved to the Medical Device industry.
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Martha Rosenberg is a columnist/cartoonist who writes about public health. Her first book, titled Born with a Junk Food Deficiency: How Flaks, Quacks and Hacks Pimp the Public Health, has just been released by Prometheus Books. She can be reached at: martharosenberg@sbcglobal.net.
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How Can the New York Times Endorse an Agreement the Public Can’t Read?
By Maira Sutton | EFF | November 7, 2013
The New York Times’ editorial board has made a disappointing endorsement of the Trans-Pacific Partnership (TPP), even as the actual text of the agreement remains secret. That raises two distressing possibilities: either in an act of extraordinary subservience, the Times has endorsed an agreement that neither the public nor its editors have the ability to read. Or, in an act of extraordinary cowardice, it has obtained a copy of the secret text and hasn’t yet fulfilled its duty to the public interest to publish it.
Without a publicly available agreement, readers are forced into the uncomfortable position of taking official government statements at face value. That’s reflected in the endorsement, which fails to note the myriad ways in which TPP has been negotiated undemocratically, shutting out public oversight while permitting corporate interests to drive the agenda. Given these glaring issues, it is disconcerting that the Times would take such a supportive stance on an agreement that is likely to threaten innovation and users’ digital rights well into the 21st century.
That situation leaves unanswered questions. Does the editorial board, for example, support the TPP provisions that would give private corporations new tools to undermine national sovereignty and democratic processes? Because “investor-state dispute settlement,” slated for inclusion in both the TPP and the EU-US trade agreement, the Transatlantic Trade and Investment Partnership (TTIP), would give multinational companies the power to sue countries over laws that might cut into expected future profits. This could allow corporations to unravel any policy designed to protect users against violations of their right to privacy or free speech online. The paper’s endorsement notes that copyright enforcement could be expanded to suit legacy media companies, but provides no explanation of why a trade agreement is an acceptable venue for deciding such issues.
Does the New York Times also endorse an initiative to scrap democratic oversight of TPP by elected lawmakers? After all, Senate Finance committee leaders, Sen. Max Baucus and Sen. Orrin Hatch have renewed their call to pass fast-track, which would hand over Congress’ constitutional mandate over US trade policy to the Obama administration. Fast-track, also known as Trade Promotion Authority, would restrict lawmakers from having any proper hearings on its provisions, limiting them to an up-or-down vote on the entire 29 chapter treaty.
The paper’s statement emphasizes how the Obama administration strives to make TPP’s policies “an example for the rest of the world to follow.” But if that’s the case, then it’s all the more important that the agreement be published immediately. Such a significant body of international law regulating digital policy must not be negotiated without proper, informed public debate. The secrecy of the process itself ensures that only some private interests will be represented at the expense of others. In addition, the U.S. Trade Representative’s history of pushing forth extreme copyright enforcement policies through other trade agreements gives little assurance that users’ rights will be considered in the TPP.
Trade representatives are working to finalize TPP negotiations by the end of the year. Negotiators are scheduled to meet in Salt Lake City next week to negotiate outstanding issues in this agreement, including provisions on liability for Internet Service Providers and anti-circumvention measures over DRM. Following that, trade delegates are seeking to finalize and sign this agreement in December in a ministerial meeting in Singapore.
It’s unfortunate that news outlets are giving little coverage to TPP, when media attention could have a major impact on how the US and the other 11 nations draft digital policy. But public media coverage is precisely the sort of accountability that official secrecy thwarts. Instead of endorsing an agreement the public can’t read, a responsible paper would condemn the secrecy involved. And if the Times has seen the text and knows what’s contained in the TPP, then they have a responsibility to publish the text immediately and expose the US government’s back room dealings.
In either case, it is deeply disappointing that the New York Times would even support the TPP when the public remains in the dark. An endorsement of TPP at this stage is an endorsement of opaque, corporate-driven policymaking.
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We need to demand that our lawmakers oppose fast track, ask them to call for a hearing, and exercise their authority to oversee the U.S. trade office’s secret copyright agenda.
Related articles
- The Trans-Pacific Partnership: We Won’t Be Fooled by Rigged Corporate Trade Agreements (alethonews.wordpress.com)
- Congress Must Not Fast Track TPP to Ratification (eff.org)

