[Ip-health] Economic Times: US may revoke special tariff if India continues pricing control on medical devices

Thiru Balasubramaniam thiru at keionline.org
Fri Apr 13 01:01:30 PDT 2018


https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/april/ustr-announces-new-gsp-eligibility

https://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/us-may-revoke-special-tariff-if-india-continues-pricing-control-on-medical-devices/articleshow/63605528.cms

BY DIVYA RAJAGOPAL
ET Bureau|
Apr 04, 2018, 08.09 AM IST



The US Trade Representative (USTR) is considering to revoke special tariff
provided to India if it continues with its pricing policy on medical
devices manufactured by American companies, two people aware of the
development told ET.

The USTR representatives, who are expected to visit India on April 9, will
be meeting Indian authorities on this issue with the message that India
will lose the Generalised System of Preference (GSP) if it continues with
“drastic” pricing measures on medical ..


GSP is a preferential treatment that the US government gives to its
exporters from developing and developed countries. The benefits under the
GSP include duty-free entry of certain goods like chemicals, gems, textiles
among others.

In 2017 India was the biggest beneficiary of GSP with a subsidies worth
$5.6 billion.

USTR’s position changed just a week after the Trump administration renewed
the GSP agreement with India.

“US lobby groups had asked the Trump administration to renew the GSP so
that they can use this as a bargaining tool with India to deter it from
imposing price cuts on medical devices,” said an official from one of the
US lobby groups.

“More than the intellectual property, it is the price cuts on medical
devices that has become a matter of concern for certain US trade groups,”
the official explained.

Last year, the Indian government decided to cap the prices of cardiac
stents and knee implants by almost 70%, outraging a host of multinational
companies operating in India.

Last year, the Indian government decided to cap the prices of cardiac
stents and knee implants by almost 70%, outraging a host of multinational
companies operating in India.

The matter has put the Indian government under pressure from several US
lobby group. The matter of price cuts became so volatile that Indian
government shifted the chairman of the drug pricing regulator Bhupendra
Singh from his position last month.





-- 
Thiru Balasubramaniam
Geneva Representative
Knowledge Ecology International
41 22 791 6727
thiru at keionline.org


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