EC welcomes 3rd revised Pharma-GATT Agreement

The European Commission has welcomed the adoption by European Union member states of the third revision of the Pharma-GATT Agreement, which eliminates customs duties among the main drug industry trading nations. The Commission claimed a leading role in negotiating both the main Agreement and its new revision.

Peter Mandelson, the EU Trade Commissioner, said that the decision is "a show of confidence in the global competitiveness of the EU pharmaceutical industry and a signal of our commitment to ensuring that the modern trading environment is in step with innovation."

The implementation of the Pharma-GATT Agreement means that customs duties on new drugs, as well as on the chemical intermediates that are employed in the production of new drugs, will not apply. Since January 1, the countries adopting the updated trade accord are the EU, Switzerland and the USA. According to the Commission, the Japanese government is expected to apply the third revision later in the year.