Pink Sheet is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

BRAZILIAN IMPORT SANCTIONS TOTALING $ 100-$ 150 MIL. URGED

Executive Summary

BRAZILIAN IMPORT SANCTIONS TOTALING $ 100-$ 150 MIL. URGED by PMA Executive VP Robert Allnutt at a Sept. 8 hearing before the U.S. Trade Representative's Trade Policy Staff Committee. "Sanctions should equal the $ 100-$ 150 mil. in economic losses that PMA has determined, based on actual product studies, its members have been suffering annually due to Brazil's refusal to protect adequately their intellectual property rights," Allnutt asserted. The hearing addressed what U.S. retaliatory actions should be taken in response to Brazil's denial of adequate patient protection for pharmaceuticals and fine chemicals ("The Pink Sheet" July 25, T&G-2). The White House's determination that such actions were justified proceeded from a PMA petition for a section 301 trade investigation against Brazil. Reaffirming the association's position that sanctions should be imposed, PMA's Allnutt pointed out that "if the imposition of trade sanctions is to influence the behavior of the government of Brazil, the choice of products and their import value must be of sufficient magnitude to have a direct and dramatic impact on the Brazilian economy." The USTR has published a broad-ranging list of products imported from Brazil against which sanctions might be imposed, but has not issued a definitive list. According to a July 26 Federal Register notice, products being considered for sanctions include unspecified drugs and fine chemicals, wood and paper items, pesticides, machine tools and household appliances. In a statement on the planned U.S. sanctions, Brazil President Jose Sarney said that "the economic threat now being imposed on us entails a huge economic price for Brazil . . . This is already hurting Brazilian exports to the U.S. in an amount many times over the . . . arbitrary amount announced by the U.S. government." The USTR assigned a value of approximately $ 200 mil. to the Brazilian imports from which it would choose products to sanction. The Brazilian statement maintains that the U.S. action would represent "a violation of the most elementary principles of international law" and of the General Agreement on Tariffs and Trade (GATT). Brazil says it "reserves the right to resort to the GATT's mechanisms to achieve the just compensation for the damages it may incur." Three U.S. companies with drug businesses also appeared individually at the hearing, although the firms discussed non-pharmaceutical issues. For example, American Cyanamid testified in support of trade sanctions, but requested an exemption for certain herbicides and pesticides exported to the U.S. by its subsidiary in Brazil. Dow Chemical and Rohm and Haas also testified. One Brazilian drug company appeared at the hearing to dispute the trade action. Companhia Brasileira de Antibioticos (CIBRAN) maintained that the sanctions were unfair since U.S. multinationals already dominate the pharmaceutical market in Brazil. The company estimated that U.S. companies supply 35.5% of Brazil's $ 2 bil.-plus pharmaceutical market, while Brazilian companies control only 15%. The only drug that CIBRAN exports to the U.S. is erythromycin. The firm estimated the value of the drug exported to the U.S. at approximately $ 2 mil. per year. Abbott Labs is a shareholder of CIBRAN.

You may also be interested in...



Part D Discount Liability Coming Into Focus: CMS Releases Drug Cost Data

Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011

FDA Skin Infections Guidance Spurs Debate On Endpoint Relevance

FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials

Shire Hopes To Sow Future Deals With $50M Venture Fund

Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth

UsernamePublicRestriction

Register

IV001392

Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel