Pharmaceutical protectionism will outlast the pandemic

Subject

Global trade in pharmacutical products and medical supplies.

Significance

Shortages of critical medical supplies highlight advanced economies' supply-chain dependence and expose fault lines in the regime covering the trade in global pharmaceuticals, the Pharmaceuticals Tariff Elimination Agreement (PTEA). The WTO-brokered accord does not include producers that have emerged as global players since it was signed in 1995, notably China, India and Brazil. However, few in Washington or Brussels are raising reform of global health trade governance.

Impacts

• Advanced economies will increasingly frame policy around pharmaceuticals in terms of national security.
• A New Zealand-led proposal for a PTEA-clone risks the same shortcomings as the original if it does not include all major players.
• China will use its Health Silk Road to promote its healthcare leadership and products, drawing Washington’s ire.
• European single-payer national health services are a target for a US administration eager to cut US drug prices for US citizens.