U.K. Advocacy Groups Threaten Legal Action Over U.S. Pharma Trade Deal

Two advocacy groups are demanding the United Kingdom revoke regulations at the heart of a new trade agreement with the U.S. over concerns the deal will allow outsiders to influence official decisions about the cost-effectiveness of medicines. And if the government does not comply, the groups are readying legal action.

Under the trade agreement that covers pharmaceuticals, which was finalized last month, the Trump administration committed to impose zero tariffs on medicines exported from the U.K. for at least three years. The deal is significant because it would make the U.K.

the only country with tariff-free access for medicines to the U.S. market. In return, the U.K. government took steps to appease the pharmaceutical industry, which is a key part of its economy, by pledging to increase spending on medicines from 0.3% of GDP to 0.35% by 2028 and then to 0.6% by 2035.

’s National Health Service will increase the prices paid for by medicines by 25% and slash the maximum rebate it can claw back from drugmakers to 15%.