EU wins WTO case against Turkey's discriminatory pharma practices

The European Union welcomes today's appeal arbitration award by the World Trade Organization (WTO) in the case the EU brought against Turkey on pharmaceutical products, according to a press statement by the Commission.

The appeal award confirms the Panel's ruling and finds that the localization measure discriminates against foreign pharmaceutical products, as it is not a form of government procurement of pharmaceutical products, and it is not designed to achieve public health objectives nor to secure compliance with laws requiring Turkey to ensure accessible, effective and financially sustainable healthcare for its population. Specifically, the discriminatory practices constitute the requirement for foreign producers of pharmaceuticals to move their production to Turkey for those pharmaceuticals to be eligible for reimbursement under Turkish social security schemes. As such, it is incompatible with Turkey's WTO commitments.

Executive Vice-President and Commissioner for Trade, Valdis Dombrovskis said: “Today's verdict is a clear win for the EU, because all claims were decided in the EU's favor. This is not only of economic importance for EU companies, but it also sends a strong signal discouraging other countries from continuing or pursuing similar discriminatory forced localization policies, which are incompatible with WTO rules.”