Trump Signs ‘Buy America First’ Pharma Executive Order – Free PDF

 BUY AMERICAN FIRST PHARMA

THE ORDER

• US President Donald Trump has signed an executive order directing some federal agencies to prioritise purchasing certain drugs and medical materials when made in the United States.

IMPACT

• The so-called “Buy American” order could lead to a seismic shakeup of the drug industry as the US is the biggest export market for the Indian pharmaceutical sector. Indian Government officials, however, said the latest measures are targeted mainly at China due to ongoing US-China hostilities and may even benefit India strategically.

INITIAL SHOCK TO INDIA

• The US is the largest market for India’s pharmaceutical products. It is said that every third pill sold in America is made in India.
• According to the Pharmaceutical Export Promotion Council of India (PHARMEXCIL) India’s pharmaceutical exports to the US are ex-factory valued at around $6 billion.

LONG TERM BENEFIT

• Trump administration order mainly targets procurement in high-tech areas like fermentation-based API (Active Pharmaceutical Ingredient), for which China has been the single source of global supply, and not low-cost generics, where India holds the edge.

INDIA’S DEPENDENCE

• India gets around 68% of its raw materials –known as active pharmaceutical ingredients (APIs) –from China.
• So if U.S becomes a major API manufacturer, it will benefit India as well

DETAILS

• Unlike China, which is heavily present in the global pharmaceutical supply chain as a producer of key drug ingredients, India is known as an exporter of finished pharmaceutical products.
• Its generic drugs are popular in the US due to their low cost, which makes them more affordable.

FUNDING U.S COMPANIES

• Kodak(U.S company) has signed a letter of intent for a $765 million US government loan with which it plans to begin production of critical active pharmaceutical ingredients (APIs) that the US now imports.

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