USITC Requests Comments on Plans to Eliminate Tariffs on Over 700 Pharmaceutical Products from 21 Trading Partners

June 10, 2010

On Wednesday, June 8, 2010, the U.S. International Trade Commission (USITC) instituted a new investigation to provide advice to the President on the probable economic effects of eliminating tariffs on over 700 pharmaceutical products and chemical intermediates   as part the World Trade Organization’s (WTO) “zero-for-zero initiative.”

Under the zero-for-zero initiative, the U.S. and several other major pharmaceutical producing countries agree to reciprocal tariff elimination for products used in the production of pharmaceuticals. The initiative was created during the Uruguay Round of WTO negotiations and has been updated in 1996, 1998, and 2006. Through the initial agreement and four subsequent updates, the U.S. and its trading partners have eliminated tariffs on approximately 9,500 products, accounting for $60 billion in annual U.S. imports and $25 billion in annual exports.

To assist in formulating its advice, the USITC will accept public comments on the list of products proposed for tariff cuts through July 14, 2010. The list of proposed pharmaceutical products and chemical intermediates under consideration is available on the USITC’s website.

Barnes/Richardson has represented domestic pharmaceutical associations in every phase of the zero-for-zero initiative, from the agreements inception to the current update. For more information on how to submit comments or how your company can become involved in future updates, please contact a Barnes/Richardson attorney.