The US pharmaceutical exports market is affected by a multitude of trade agreements with various countries, including the United Kingdom. As one of the biggest trade partners with the US, treaties, and contracts with this country often affect the economies of not only both countries but of other countries connected to these two partners. And a new deal between the US and the UK could have a trickle-down effect in a multitude of ways.
The Basics of the Trade Agreement
This new trade agreement, signed in mid-February, is one that will continue in effect when the United Kingdom leaves the European Union. The agreement was signed by Sir Kim Darroch of the UK and C.J. Mahoney of the US and will facilitate a stronger exchange of goods between the two countries. Though both are already strong trade allies, the new agreement will ensure that all products are compliant with important technical regulations when leaving the UK or the United States.
For example, medical goods will need to be inspected and carefully checked to ensure that they are properly designed and not prone to any failure. Just as importantly, all products will be packed in specific ways to ensure that shipping is efficient. The idea behind this agreement is to not only boost the speed and efficiency trade between the two countries but to create a consistent exchange of goods that meet a high level of quality. And the US pharmaceutical exports market will be affected.
How This Affects the Pharmaceutical Industry
The US pharmaceutical exports market is enormous in the UK, though this exchange of goods is more than reciprocal. For example, about 18 percent of all UK goods sent to the US are pharmaceutical, which is a more than $8 billion business for the country. All in all, the deal will cover over $14-15 billion of goods, with the UK exports business sending over $10 billion of its total exports to the US.
The agreement not only strengthens this commitment to improving the relationships between the countries – which have strained somewhat during the Trump administration – but to also support the UK economy during its controversial exit from the European Union. An increasing trade commitment to the US could strengthen bonds with the economy-driven Trump administration while helping to advance the financial strength of both countries.
The only downside is that the influx of UK-created pharmaceutical goods could impact the US pharmaceutical exports market. However, this issue is unlikely to be a major problem because the US exports a majority of its medical goods to other countries in the world, including many goods it gets from the UK.