The U.S. decision has major implications on generic drugs, affordability of medicines and on efficient sourcing
- India has sought clarity from the U.S. government which gave rise to apprehensions that medicines procured by America
- That should be only from companies making even the Active Pharmaceutical Ingredients (API) either locally or in certain designated nations such as EU members
- India and China account for about 80 per cent of the U.S.’s requirement of API (drug raw materials)
- The U.S. TAA applies America’s international trade agreements and the WTO’s Government Procurement Agreement (GPA)
- Medicines need to be made in the U.S., or in certain ‘designated countries,’ as per U.S. trade rules
- India and China are not in this list of ‘designated countries’. India is not a signatory to the GPA and does not have a free trade pact with the U.S.