America’s trade policy should reflect U.S. law and promote a balance between supporting the development of innovative medicines and promoting competition through greater access to generic and biosimilar medicines. Unfortunately, this policy objective, included in the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA), is often absent in U.S. trade policy.
U.S. trade has too often put the interests of pharmaceutical monopoly owners over the needs of the larger U.S. healthcare sector and, specifically, America’s generic and biosimilar manufacturers. As the U.S. government works to lower barriers for U.S. exports, the impact of trade policies on the U.S. economy must be considered. Restrictions and provisions included in trade agreements impact what laws and amendments Congress can and cannot pass. Therefore, it is critical that trade agreements, as they enter into force, have a holistic view of their benefits and costs.
U.S. trade policy should:
Tariffs on generic medicines and ingredients, especially essential medicines, have disastrous impacts on the already struggling U.S. market where manufacturers face discontinuing drugs because reimbursement falls under the cost of production. Tariffs make it nearly impossible to continue manufacturing in the United States for those who already do so, and would discourage others from onshoring.
Imposing tariffs on generics and biosimilars heightens market sustainability concerns and potentially exacerbates supply chain shortages.
The negative effect of tariffs include:
The revised USMCA creates greater opportunities for patients in Mexico, Canada and the United States to access less expensive medicines and promotes a competitive pharmaceutical market across the three countries.
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