BRIEF—AAM expresses concerns on USTR's proposed China tariffs

The US Association for Accessible Medicines (AAM) believes that all finished pharmaceuticals, pharmaceutical ingredients and active pharmaceutical ingredients (API) should be removed from the annex of products to be subject to additional duties published in US Trade Representative’s (USTR) 301 Notice.

Imposing an additional 25% tariff on such products will increase the cost of prescription drugs for patients in the USA, taxing their health and well-being, which will cause disproportionate economic harm for consumers and is unlikely to result in the desired changes to China's practices, says Jeff Francer, senior vice president and general counsel at the AAM.

Many countries have recognized that tariffs on pharmaceuticals are a barrier to access to medicines. More than 90% of countries apply tariff rates of less than 10% on medicines.In fact, China is lowering its pharmaceutical tariffs now.

Moreover, since 1995, the USA and 21 of its trading partners have eliminated import duties on pharmaceuticals and API under the World Trade Organization (WTO) Pharmaceutical Agreement, in order to lower the cost of drug prices for US consumers.

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