Tanzania's drug import tariffs condemned

The Tanzanian government has imposed a 10% import duty on most pharmaceutical products, in an apparent attempt to protect the local "infant medicine industries." Despite some exemptions, notably for antiretrovirals, antimalarial and anti-tuberculosis drugs, critics of the move have noted that the heaviest cost will be to the poorer families in Tanzania, where the average yearly income is $744.

A representative of the UK-based global think-tank, International Policy Network, described the Tanzanian government's new policy as "taxing the sick," in an article that was distributed in several African newspapers, including the Ugandan Daily Monitor. Alec van Gelder said: "protecting infant industries may sound harmless but tariffs insulate domestic producers from foreign competition, so consumers pay high prices." He added that "many other disastrous examples demonstrate that protectionism does not work and that when producers fail, they lobby governments to tilt the playing field further in their favor."

One measure that would improve the situation globally, but especially for people who are struggling to to pay for drugs in poorer countries, according to the IPN, would be a proposal at the World Trade Organization - sponsored by the USA, Switzerland and Singapore - to remove all tariffs and taxes on drugs (Marketletters passim). Such a move is currently opposed by what Mr van Gelder termed: "an unholy coalition of crony businesses, governments and [non-governmental organizations]."