7NEWS The Issue: Why Trump's latest veiled threat could spell trouble for the pride of Australia
In mid March, as the Albanese government looked for an issue to give it impetus for a soon-to-be-called election, it turned to the PBS; loved in Australia - and loathed by Pharmaceutical makers abroad - for delivering medicines at little more than one quarter the cost paid by Americans.
Prime Minister Albanese announced, if reelected, he'd reduce the scheme's cap on prescriptions, from $31.60 to just $25.
Opposition leader Peter Dutton immediately backed the plan.
'We support affordable medicines,' he told radio 2GB.
On complaints from US pharmaceutical companies about the PBS, the Prime Minister seized on the chance for a fight.
The PBS, he said was 'a monument to the fairness at the heart of Australian life and we don't negotiate our values.'
The PBS is political gold. Supporting it is a 'no brainer' for a federal politician.
Yet, five months on that threat from the US, has only intensified and it may yet test Australia's love for the scheme.
For President Donald Trump, high prescription drug costs in America have become a cause.
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Last month, the White House announced the President had written to 17 drug company CEOs demanding guarantees 'they will not offer other developed nations better prices for new drugs than prices offered in the United States.'
According to a Trump White House fact sheet, 'Americans are subsidising drug-manufacturer profits and foreign health systems.'
The statement did not mention Australia's PBS, but if the White House staff had wanted an example, it would have been an obvious candidate.
'The PBS is a cornerstone of our Medicare system' according to Medicines Australia CEO, Liz de Somer, though that's where her applause for the scheme ends.
Medicines Australia is the industry body representing many of the same pharmaceutical giants now targeted by the Trump White House.
According to Liz de Somer 'we're lagging behind other countries in the time it takes to make new medicines available on the PBS.'
'We are now taking an average of 466 days for a new innovative medicine to be listed on the PBS, and that's after it's already been deemed safe and effective by the Therapeutic Goods Administration.'
'We know these drugs are safe, we know they're effective, but the government has not yet decided to purchase them and make them subsidised for patients. They take too long.'
Medicines Australia wants the 466 days average drug listing time, reduced dramatically - to just sixty days.
That would likely mean dramatically reducing the time taken by the government and companies to negotiate a price for their medicines. The end result could easily be a bigger bill for the Australian taxpayer. Currently, the PBS costs about $14 billion a year to run.
Of course, there is a human cost to delaying approval for medicines.
Medicines Australia points to the 'many, many cancer medicines that are not available for patients' in Australia.
According to Liz de Somer: 'We are getting one in four innovations listed on our PBS at the moment. That's not good enough.'
'We know that people are waiting for these medicines. We know that they can see they're available in other countries, and they don't understand why they're not made available here.'
There is an obvious profit motive for pharmaceutical companies in getting listed sooner and selling their product more quickly, but delays in the system have a human cost.
The Albanese government is currently considering recommendations to reform the scheme including measures designed to speed the process.
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"In Putin's view, a peace agreement means several dangerous things – Ukraine not joining NATO, his absurd demands for denazification and demilitarisation, the Russian language and the Russian church," he said. Any such deal could be politically explosive inside Ukraine, Merezhko said, adding he was worried that Putin's international isolation had ended. Avoiding a repeat of the Oval Office acrimony is critical for Zelenskiy to preserve the relationship with the US, which still provides military assistance and shares intelligence. For Ukraine, robust security guarantees to prevent any future Russian invasion lie at the foundations of any serious peace settlement. Two sources familiar with the matter said that Trump and the European leaders discussed potential security guarantees for Ukraine that would be outside NATO but similar to the alliance's Article 5 during their call on Saturday. NATO, which Kyiv seeks to join, though Trump has made clear that it will not happen soon, regards any attack launched on one of its 32 members as an attack on all under its Article 5 clause. One of the two sources, who requested anonymity to discuss sensitive matters, said European leaders were seeking clarity on what kind of US role this guarantee would involve, but that there were no details yet. Zelenskiy has repeatedly said a trilateral meeting with the Russian and US leaders is crucial to finding a way to end the full-scale war launched by Russia in February 2022. Trump this week voiced the idea of such a meeting, saying it could happen if his bilateral talks in Alaska with Putin were successful. "Ukraine emphasises that key issues can be discussed at the level of leaders, and a trilateral format is suitable for this," Zelenskiy wrote on social media on Saturday. Ukraine's Volodymyr Zelenskiy is flying to Washington under heavy US pressure to agree a swift end to Russia's war in Ukraine, but is determined to defend Kyiv's interests, without sparking a second Oval Office bust-up with Donald Trump. The US president invited Zelenskiy to Washington after rolling out the red carpet for Vladimir Putin, Kyiv's arch foe, at a summit in Alaska that shocked many in Ukraine, where tens of thousands have died since Russia's 2022 invasion. The Alaska talks failed to produce the ceasefire that Trump had sought, and the US leader said on Saturday that he now wanted a full-fledged peace deal and that Kyiv should accept because "Russia is a very big power, and they're not". The blunt rhetoric throws the weight of expectation squarely back onto Zelenskiy, putting him in a potentially perilous position as he returns to Washington for the first time since his talks with Trump in the Oval Office spiralled into acrimony in February. The US president upbraided Zelenskiy in front of world media at the time, saying Ukraine's leader did not "hold the cards" in negotiations and that what he described as Kyiv's intransigence risked triggering World War Three. Trump's pursuit of a quick deal now comes despite intense diplomacy by the European allies and Ukraine to convince the US president that a ceasefire should come first and not, as sought by the Kremlin, once a settlement is agreed. The New York Times, citing two senior European officials, reported on Saturday that European leaders were also invited to attend Monday's meeting between Trump and Zelenskiy. Reuters could not immediately confirm the report. Trump briefed Zelenskiy on his talks with Putin during a call on Saturday that lasted more than an hour and a half, the Ukrainian leader said. They were joined after an hour by European and NATO officials, he added. "The impression is he wants a fast deal at any price," a source familiar with the conversation told Reuters. The source said Trump sought to convince Zelenskiy to agree to the idea of a deal in which he would withdraw troops from the partially-occupied eastern Donetsk region that Russian troops have been trying to capture for years. Zelenskiy replied that it was not possible, the source added. Kyiv has publicly dismissed the idea of withdrawing from internationally recognised Ukrainian land they control as part of any deal. Donetsk region, Ukrainian officials say, serves as a fortress holding back Russian advances deeper into Ukraine. Oleksandr Merezhko, head of the Ukrainian parliament's foreign affairs committee, told Reuters by phone that Trump's emphasis on a deal rather than a ceasefire carried great risks for Ukraine. "In Putin's view, a peace agreement means several dangerous things – Ukraine not joining NATO, his absurd demands for denazification and demilitarisation, the Russian language and the Russian church," he said. Any such deal could be politically explosive inside Ukraine, Merezhko said, adding he was worried that Putin's international isolation had ended. Avoiding a repeat of the Oval Office acrimony is critical for Zelenskiy to preserve the relationship with the US, which still provides military assistance and shares intelligence. For Ukraine, robust security guarantees to prevent any future Russian invasion lie at the foundations of any serious peace settlement. Two sources familiar with the matter said that Trump and the European leaders discussed potential security guarantees for Ukraine that would be outside NATO but similar to the alliance's Article 5 during their call on Saturday. NATO, which Kyiv seeks to join, though Trump has made clear that it will not happen soon, regards any attack launched on one of its 32 members as an attack on all under its Article 5 clause. One of the two sources, who requested anonymity to discuss sensitive matters, said European leaders were seeking clarity on what kind of US role this guarantee would involve, but that there were no details yet. Zelenskiy has repeatedly said a trilateral meeting with the Russian and US leaders is crucial to finding a way to end the full-scale war launched by Russia in February 2022. Trump this week voiced the idea of such a meeting, saying it could happen if his bilateral talks in Alaska with Putin were successful. "Ukraine emphasises that key issues can be discussed at the level of leaders, and a trilateral format is suitable for this," Zelenskiy wrote on social media on Saturday.
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Ukraine's Volodymyr Zelenskiy is flying to Washington under heavy US pressure to agree a swift end to Russia's war in Ukraine, but is determined to defend Kyiv's interests, without sparking a second Oval Office bust-up with Donald Trump. The US president invited Zelenskiy to Washington after rolling out the red carpet for Vladimir Putin, Kyiv's arch foe, at a summit in Alaska that shocked many in Ukraine, where tens of thousands have died since Russia's 2022 invasion. The Alaska talks failed to produce the ceasefire that Trump had sought, and the US leader said on Saturday that he now wanted a full-fledged peace deal and that Kyiv should accept because "Russia is a very big power, and they're not". The blunt rhetoric throws the weight of expectation squarely back onto Zelenskiy, putting him in a potentially perilous position as he returns to Washington for the first time since his talks with Trump in the Oval Office spiralled into acrimony in February. The US president upbraided Zelenskiy in front of world media at the time, saying Ukraine's leader did not "hold the cards" in negotiations and that what he described as Kyiv's intransigence risked triggering World War Three. Trump's pursuit of a quick deal now comes despite intense diplomacy by the European allies and Ukraine to convince the US president that a ceasefire should come first and not, as sought by the Kremlin, once a settlement is agreed. The New York Times, citing two senior European officials, reported on Saturday that European leaders were also invited to attend Monday's meeting between Trump and Zelenskiy. Reuters could not immediately confirm the report. Trump briefed Zelenskiy on his talks with Putin during a call on Saturday that lasted more than an hour and a half, the Ukrainian leader said. They were joined after an hour by European and NATO officials, he added. "The impression is he wants a fast deal at any price," a source familiar with the conversation told Reuters. The source said Trump sought to convince Zelenskiy to agree to the idea of a deal in which he would withdraw troops from the partially-occupied eastern Donetsk region that Russian troops have been trying to capture for years. Zelenskiy replied that it was not possible, the source added. Kyiv has publicly dismissed the idea of withdrawing from internationally recognised Ukrainian land they control as part of any deal. Donetsk region, Ukrainian officials say, serves as a fortress holding back Russian advances deeper into Ukraine. Oleksandr Merezhko, head of the Ukrainian parliament's foreign affairs committee, told Reuters by phone that Trump's emphasis on a deal rather than a ceasefire carried great risks for Ukraine. "In Putin's view, a peace agreement means several dangerous things – Ukraine not joining NATO, his absurd demands for denazification and demilitarisation, the Russian language and the Russian church," he said. Any such deal could be politically explosive inside Ukraine, Merezhko said, adding he was worried that Putin's international isolation had ended. Avoiding a repeat of the Oval Office acrimony is critical for Zelenskiy to preserve the relationship with the US, which still provides military assistance and shares intelligence. For Ukraine, robust security guarantees to prevent any future Russian invasion lie at the foundations of any serious peace settlement. Two sources familiar with the matter said that Trump and the European leaders discussed potential security guarantees for Ukraine that would be outside NATO but similar to the alliance's Article 5 during their call on Saturday. NATO, which Kyiv seeks to join, though Trump has made clear that it will not happen soon, regards any attack launched on one of its 32 members as an attack on all under its Article 5 clause. One of the two sources, who requested anonymity to discuss sensitive matters, said European leaders were seeking clarity on what kind of US role this guarantee would involve, but that there were no details yet. Zelenskiy has repeatedly said a trilateral meeting with the Russian and US leaders is crucial to finding a way to end the full-scale war launched by Russia in February 2022. Trump this week voiced the idea of such a meeting, saying it could happen if his bilateral talks in Alaska with Putin were successful. "Ukraine emphasises that key issues can be discussed at the level of leaders, and a trilateral format is suitable for this," Zelenskiy wrote on social media on Saturday.
