Australia is a "second tier" biotechnology country according to Australian trade negotiators.
US industry sources have expressed shock over the dismissive attitude of Australia's trade negotiators to a sector identified as a strategic priority by successive governments.
The medical and pharmaceutical technology industry is one of five sectors 'prioritised' by the current government since its election in 2013.
BiotechDispatch understands the description of Australia as a 'second-tier biotech country' was made by Australia's chief TPPA negotiator in recent days during meetings with senior representatives of the US-based life sciences industry.
The comment shocked industry representatives who had already become increasingly frustrated at Australia's intransigence over the data exclusivity issue.
Prime Minister Malcolm Turnbull is also understood to have told US President Barack Obama he would lose the next election if forced to accept a formal eight-year data exclusivity period for biologics.
The claim was mocked by the US-based industry.