The Effects of Trade Agreements on Imports of Biologics: Evidence from Chile

Abstract This paper develops new indicators that measure the strength of intellectual property rights (IPR) provisions in Chile’s free trade agreements (FTAs). We use these new indicators to examine the extent to which FTAs with strong IPR provisions impact the volume, unit value and overall value of imported biologic medicines into Chile. We find that FTAs with more stringent IPR provisions increase both the volume and the unit value of imported biologics, suggesting greater availability of imported biologics at a higher price. Further research, however, is necessary to determine whether the increases in volume and unit prices of imports lead to greater universal access to biologics or greater inequity in access to these medicines.