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

Malini Aisola malini.aisola at gmail.com
Tue Apr 17 03:46:29 PDT 2018


This is AdvaMed’s statement on the GSP review: 


Statement on USTR acceptance of AdvaMed’s GSP petition from AdvaMed’s Abby Pratt, vice president, global strategy and analysis:
 
“AdvaMed is pleased that the U.S. Trade Representative (USTR) has accepted our petition requesting that India’s benefits under the Generalized System of Preferences (GSP) be suspended or withdrawn. We submitted our petition in October 2017, in light of India’s failure to provide equitable and reasonable access to its market for medical devices. Acceptance of the petition reflects acknowledgement by USTR of the validity of our underlying concerns, following recent congressional action to reauthorize the broader GSP program, and it clears the way for the agency to formally begin its review process.

 
“Discussions with the Indian government have evolved since this petition was filed over the past six months, and we remain cautiously optimistic that an alternative solution to price controls on medical technologies – such as trade margin rationalization – may yet be found. AdvaMed and its member companies remain committed to working with all health care stakeholders in India to find mutually acceptable, sustainable solutions to improving patient access to life-changing innovations from the medical technology industry.”

 

> On 17-Apr-2018, at 3:39 PM, Malini Aisola <malini.aisola at gmail.com> wrote:
> 
> This was our, the All India Drug Action Network’s, response:
> 
> At the end of last year, the US medical device makers Abbott, Boston Scientific and Medtronic through the AdvaMed industry association petitioned the US government for withdrawing GSP benefits to India. The US government decision, instigated by these companies, to review India’s eligibility under the GSP follows on the heels of the USTR meeting with Indian officials. It is strategically aimed at maintaining sustained pressure against India’s use of price controls on medical devices to improve affordability for its population. The price intervention on stents was a measure to rationalise a highly uncompetitive market dominated by the aforementioned companies and to stem rampant corruption that was the mainstay of the business. By towing the line of Abbott, Boston scientific and Medtronic, the US government is ignoring the millions of dollars leeched from Indian patients through exploitative pricing  over more than a decade and is complicit in staking the health of millions of people by pressuring the Indian government not to act to expand access to healthcare. The actions of US government and device companies are despicable and violative of the right to health.
> 
> 
> 
>> On 13-Apr-2018, at 1:31 PM, Thiru Balasubramaniam <thiru at keionline.org> wrote:
>> 
>> 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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