UK and US Forge Zero-Tariff Agreement for Pharmaceuticals,โ Boosting Access and investment
A new trade โคagreement between theโข United Kingdom and the United States eliminates import taxes on UK-origin pharmaceuticals, โpharmaceutical ingredients, and medical technology. โThe deal, announcedโค recently, aims to improve patient access to cutting-edge medicines andโข encourage further investment inโ the UK’sโข life sciencesโข sector.
Under the terms of the agreement, the US โwill apply a 0% tariff โขrate on all pharmaceuticals exported from the UK โ- aโ rate the UK government states is the lowest offered to โany country. In return, UK drug firms have committedโฃ to increased investment and job creation withinโ the US.
The UK government anticipates the deal will lead to approximately a 25%โ increase in spending by the National Health โService (NHS) on new and effective treatments,marking the first significant rise in such spendingโ in over two decades. This increased funding is expected to allow UKโ health authorities to approve medicines demonstratingโค substantialโ health improvements, even if previously โคdeemed too costly. This includes potential access to breakthrough โcancer treatments and therapies for rare diseases.
“This vital deal will ensure UK patients get โthe cutting-edge medicines they need sooner, and our world-leading UK firms keep developing the treatments that canโค change โlives,” stated โScience and Technology secretary Lizโฃ Kendall.
The Association of the โฃBritish Pharmaceutical Industry (ABPI) welcomed the agreement, calling it “an important โฃstepโข towards ensuring patients can access โฃinnovative medicines โฃneeded to improve โฃwider NHS health outcomes.” ABPI โคchief โฃexecutive Richard Torbett added that the deal “should alsoโ putโ the UK in a stronger position to attract and retain global life science investment and advanced medicinal research.”
US โHealth Secretary Robert F. Kennedy Jr. โechoed thisโค sentiment, stating the agreement “strengthens the global environment โfor innovative medicines and brings long-overdue balance to US-UK pharmaceutical trade.”
The agreement comes at a time when some pharmaceutical giants, including AstraZeneca, have โrecently paused or cancelled investments in the UK. US โฃambassador Warren Stephensโ recently cautioned that American businesses may curtail future investments unless “there are not changes made and โฃfast.”
This pharmaceutical deal builds upon a broader framework for a trade pact agreed to earlier this year between President Donald Trumpโค and British Prime Minister Keir Starmer. That framework outlined plans to reduce US import taxes on British cars, steel,โ and aluminum, in exchange for increasedโ access to โthe โBritish market for US products like beef and ethanol.
