Wto Pharmaceutical Tariff Elimination Agreement

Tariffs on all health-related product groups have been reduced since 1996 (Chart 4.8). Tariffs on pharmaceuticals (groups A1 and A2) have been significantly reduced in developing countries and LDCs and have remained close to zero in industrialized countries. General-purpose chemical input tariffs remained the most protected product category in the three groups of countries. Economies in transition showed opposite patterns: formulations (A1) were and will remain the most protected group of products, while tariffs on certain intermediate consumption (A3) and general requirements (B) were the lowest. Economies in transition reduced tariffs less than the other three groups of countries. Developing countries appear to have structured tariffs on formulations (A1), mass medicines (A2) and pharmaceutical inputs (A3) to promote local drug production through customs protection (Levison and Laing, 2003), particularly for generics, but commentators have questioned the coherence of these policies (Olcay and Laing, 2005). On the other hand, LDCs apply lower tariffs on formulations (A1) than on mass medicines (A2) and specific inputs in the pharmaceutical industry (A3). Transition economies apply lower tariffs on mass drugs, pharmaceutical inputs and chemical inputs, suggesting the intention of providing cheap inputs for domestically manufactured drugs. 15.Access to medicines is a public good and a good thing for uk and EU businesses.

World Health Organization studies show little or no use or justification for tariffs on pharmaceuticals, indicating that these tariffs produce less than 0.1 per cent of global GDP and, with a few exceptions, tariffs do not appear to be structured in general to protect the local pharmaceutical industry.40 The global nature of the industry , with complex supply chains and public and political pressure on access to new and innovative medicines. , means that we have not heard evidence supporting a protectionist approach or the imposition of tariffs on these products. For British patients, generic brands and drugs are almost exclusively subject to purchasing decisions by the National Health Service, a facility with limited resources. In 2017, the NHS paid nearly $16 million in prescription drugs, an increase of 7 percent over the previous year.41 companies informed us that the rates would increase costs42, which could lead to higher bills for NHS drugs or a reduction in access to drugs. The Government has reaffirmed its desire to impose zero tariffs on trade in goods43 and must now do so. With the exception of China, India, Brazil and South Africa, most developing and least developed countries do not have production sites in the pharmaceutical and medical sectors, according to several studies and publications.

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