European pharma industry acknowledges the progress made, particularly with partial tariff reductions, but said further provisions could have been achieved.
A major new economic deal between Europe and key Latin American countries will create “the largest free trade zone in the world”, according to European Commission President Ursula von der Leyen.
The free trade agreement between the EU and Mercosur countries (Argentina, Brazil, Uruguay and Paraguay) aims to boost bilateral trade and investment and lower tariff and non-tariff trade barriers, particularly for small and medium-sized companies.
The EU is one of Mercosur's main partners for trade and investment and its deal with the region opens up procurement markets, granting companies “the predictability they need to plan, expand and invest”, President von der Leyen said.
“Today, 60,000 European companies export to Mercosur, half of them are small and medium-sized companies. One benefit of the deal is it enables them to save around €4 billion annually in export duties.
“EU exports to Mercosur are expected to grow by up to €50 billion. At the same time, Mercosur exports could increase by up to €9 billion.”
for the pharmaceutical sector, conclusion of the free trade agreement provides “some progress”, particularly through partial tariff reductions, however further provisions could have been made"
Nathalie Moll, Director General at European pharma trade body EFPIA, said that for the pharmaceutical sector, conclusion of the free trade agreement provides “some progress”, particularly through partial tariff reductions, however further provisions could have been made.
For instance, “EU FTAs should aim to include key provisions on intellectual property protection - such as Regulatory Data Protection and Supplementary Protection Certificates - and meaningful access to public procurement."
Last month saw finalisation of another key trade agreement, a landmark three-year pharmaceuticals deal between the UK and US.
Edita Hamzic, Healthcare Analyst at GlobalData, said: “Zero-tariff access to the US, combined with more predictable and generous domestic pricing, gives the UK a rare structural advantage in attracting early launches, clinical trials, and high-value manufacturing.”
For example, Moderna’s commitment last September to open the UK’s first mRNA vaccine manufacturing facility is “evidence that tariff certainty and pricing reforms are strengthening confidence in the UK as an R&D and manufacturing base”, GlobalData noted.
Hamzic affirmed that “pharmaceutical investment decisions are increasingly being shaped by policy durability rather than cost alone”.
