EU ADOPTS AGREEMENT TO BOOST PHARMACEUTICAL TRADE

The European Union (EU) has adopted a new international agreement that will eliminate customs duties on many new pharmaceutical products among major drug-trading nations.

The third revision of the Pharma-GATT Agreement will add 1,290 new pharmaceuticals and chemical intermediates to the existing list of 7,329 products that are exempt from customs duties. So far, the EU, the U.S. and Switzerland are part of the agreement, and Japan is expected to apply later this year.

"This agreement puts free trade at the service of European businesses and consumers. It is a show of confidence in the global competitiveness of the EU pharmaceutical industry, and a signal of our commitment to ensuring that the modern trading environment is in step with innovation," EU Trade Commissioner Peter Mandelson said.

The European Chemical Industry Council estimates that the revised agreement will save nearly $300 million in 2007.