INDIA TO STUDY IMPACT OF FTAS ON DRUG INDUSTRY
The Indian government is to study the likely impact of free trade agreements (FTAs) on the domestic drug industry. In partnership with India's Tariff Commission, chemicals ministry officials will draw up two lists, one showing drugs expected to benefit significantly from trade liberalisation, and another detailing drugs expected to be negatively impacted by such agreements.
India has a number of full or partial FTAs with other Asian countries, including members of the Association of South East Asian Nations (ASEAN) and China. Recent talks on easing pharmaceutical trade barriers have included Israel and a number of South American countries.
However, domestic drug industry sources have already claimed that increased
competition could force small and medium scale local manufacturers out of business.
Meanwhile, others comment that FTAs especially with other Asian countries
could prove lucrative for local drug exporters. New FTAs would also eventually
invalidate some of the duties performed by the somewhat bureaucratic Tariff
Commission, which accounts for extensive factors in home and foreign markets
in its calculations.