Natalie Barr:
Well, Donald Trump’s latest move is set to hit Aussies hard again, with the US President signing an executive order to cut the cost of medications by 30–80 per cent. That prompted pharmaceutical companies to crash on the ASX, which experts say will now look to balance out their lost profits in the US by rising prices in other developed countries like Australia.
For more, we’re joined by Treasurer Jim Chalmers. Good morning to you. Tell us, how will you ensure the price of medicines don’t skyrocket here in response to the cuts in the US?
Jim Chalmers:
Good morning, Nat. Obviously, we’ve seen the announcements out of the US and we’ll work through them in the usual way. But we’ve made it really clear, and I make it clear again today, that our Pharmaceutical Benefits Scheme is not up for negotiation. We are making medicines cheaper in this country, not more expensive.
The PBS is a really proud creation of Labor in government. It’s something that we cherish, it’s something that we are advancing with our policies, and it’s something that we will do everything to protect.
Barr:
So, if Trump is forcing the US drug companies to cut their costs in the US, they might have to recoup their costs internationally in countries like ours. Well, does that mean the Australian taxpayer will have to pay more to prop up the PBS?
Chalmers:
First of all, the announcement is a fact. The announcement has been made, but the implications are still unclear. Some of those consequences for other countries are being speculated on but are not necessarily locked in. We’ll work through that, as I said a moment ago.
But this Albanese Labor government is making medicines cheaper, not more expensive. We’ve made it very clear publicly and privately that we won’t be changing the PBS at the behest of other countries. And that remains our position.
Barr:
Okay, let’s go to Wall Street. Responding well overnight to the news that Donald Trump has secured this trade deal with China, managing to slash the tariffs. Does that fuel confidence that you and the PM can secure a deal with the President as well?
Chalmers:
It’s a very welcome development. I think anyone who’s watching the way that markets have been extremely volatile in recent months would welcome this development, but we also need to recognise that there’s still a lot of uncertainty, there’s still a lot of volatility in the global economy that we all have to deal with, and a lot of that volatility is still unresolved.
Even though this was a welcome development in the last day or 2. We will continue to engage with the Americans as we have been. We’ve got a good story to tell as Australians. This is a relationship of mutual economic benefit. We’re very pleased to see some of these tensions de‑escalate over the course of the last day or 2. But these negotiations are probably got a little way to run yet.
Barr:
Okay. I notice the PM’s heading to Europe as well, talking to them about trade. What do you reckon we can get out of them?
Chalmers:
In the world, we’ve shown that we’ve got a big interest in free and open markets. Australia is a big beneficiary of world trade. Our economy is very trade exposed. We’ve got a lot of skin in the game when we see these escalating trade tensions, so we have been engaging right around the world.
Even myself in my portfolio the last few weeks, speaking to my colleagues from Korea, Indonesia, Japan, New Zealand, the UK and others, because we’ve got a big interest here. The Prime Minister, with the Trade Minister, the Foreign Minister and others is a very enthusiastic advocate for those free and open markets which benefit Australian businesses and industries and workers.
Barr:
Ok, we’ll let you get on with the job. Treasurer, thank you very much for your time.
Chalmers:
Thanks, Nat.