Foreign Policy Watch: India-United States

India flags API issue to U.S. govt.

The U.S. decision has major implications on generic drugs, affordability of medicines and on efficient sourcing

  1. India has sought clarity from the U.S. government which gave rise to apprehensions that medicines procured by America
  2. That should be only from companies making even the Active Pharmaceutical Ingredients (API) either locally or in certain designated nations such as EU members
  3. India and China account for about 80 per cent of the U.S.’s requirement of API (drug raw materials)
  4. The U.S. TAA applies America’s international trade agreements and the WTO’s Government Procurement Agreement (GPA)
  5. Medicines need to be made in the U.S., or in certain ‘designated countries,’ as per U.S. trade rules
  6. 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.
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