According to a report by The Print on September 29, the Trump administration announced a 100% tariff on medicines, which will impact Indian pharmaceutical companies but also present potential transformation opportunities. President Trump announced on social media that starting from October 1, a 100% tariff will be imposed on all branded or patented medicines imported into the US, unless foreign companies establish pharmaceutical production facilities in the US. It is reported that India has $30 billion in pharmaceutical exports, and 90% of prescriptions in the US contain Indian medicine. The Indian pharmaceutical industry is facing the impact of Trump's tariff policies. However, Meenakashi Lekhi, the former Minister of State for Foreign Affairs and Culture, said that there are still potential opportunities for India. First, Indian companies not only export generic drugs but also "branded generics" (drugs that are generic but sold under a specific brand name by pharmaceutical companies), providing space for US regulators to redefine boundaries. Second, Indian medicines are often re-labeled or re-packaged before entering global markets, making Indian manufacturers as hidden suppliers. Lekhi pointed out that India should respond to the US pharmaceutical tariffs in five ways. First, promote the sale of Indian own brands in international markets. Second, establish production and regulatory centers in partner countries such as Latin America to avoid US involvement in the re-labeling process. Third, continuously improve compliance standards to support Indian exporters with their own brands. Fourth, challenge the US tariffs through multilateral channels such as the WTO, clearly distinguish between branded drugs and generic drugs, and use trade remedy measures. Fifth, accelerate R&D processes to move up the value chain. Finally, Lekhi pointed out that the US's increase in pharmaceutical tariffs to restructure the supply chain will certainly fail, and India can take advantage of its relations with Latin American partner countries such as Colombia to improve the position of its pharmaceutical industry in the value chain.
American government "shutdown" crisis
Original: www.toutiao.com/article/1844773832792064/
Statement: This article represents the views of the author.