EU lobbies for exclusion of medical technology and diagnostic tools from trade dispute
The medical technology industry is expressing concern over potential tariff disruptions, as negotiations between the European Union (EU) and the United States continue. The EU has proposed a framework agreement that sets a 15% tariff on most exports to the US, including medical devices and diagnostics, but the deal details remain unclear [1][3].
MedTech Europe, the European counterpart of AdvaMed (the U.S. medtech industry association), has urged policymakers to exempt medical technologies from any trade tariffs or export restrictions. The organisation is advocating for medical technologies to be covered by a zero-for-zero policy on trade between the U.S. and EU [2].
AdvaMed has made similar pleas for tariff relief, calling for "zero-for-zero" reciprocal tariffs on the trade of medtech products [2]. Both organisations are concerned about the potential impact of tariffs on patient care, as companies may struggle to adapt their supply chains and replace necessary components [2].
The disruption of supply chains would create ripple effects throughout the healthcare system. Replacing components is not a simple option in some cases, as no alternative may exist. The process of revalidating alternatives to necessary components is lengthy and resource-intensive to ensure the same high standards and safety are met [2].
The European Commission's draft proposal for countermeasures to U.S. tariffs targets a broad range of devices, diagnostics, and components, including over 800 trade codes related to medical technologies [2]. The U.S. has imposed a 20% tariff on most goods imported from the EU, but the negotiating position reportedly includes limited exemptions for some medical devices and generic medicines [4].
Negotiators have until July 9 to reach an agreement or extend talks, after which the U.S. may reimpose tariffs at a higher rate [2]. If negotiations fail to yield a favourable deal, the EU has prepared potential countermeasures targeting US imports, including medical devices [2].
Both MedTech Europe and AdvaMed are emphasising the need for clear exemptions to avoid harm to the medical technology sector and healthcare access. They highlight the risk of increased tariffs or export restrictions on medical devices and diagnostics, which could disrupt supply chains, increase costs, and hamper patient access to innovative medical technologies [2].
They also express concerns about the potential detrimental impact on transatlantic trade and collaboration in healthcare and medical technology sectors, vital for innovation and public health [2]. The organisations are urging policymakers to consider the strategic importance of medical devices and diagnostics in the current negotiation drafts [4].
In summary, as negotiations between the EU and the U.S. continue, the medical technology industry is urging policymakers to exempt medical technologies from any trade tariffs or export restrictions. The organisations are concerned about the potential impact of tariffs on patient care, supply chains, and transatlantic trade and collaboration in the healthcare and medical technology sectors.
- The medical technology industry, through MedTech Europe and AdvaMed, is advocating for zero-tariffs on medtech exports between the EU and the US to prevent potential disruptions in patient care.
- The organizations are calling attention to the complexities of replacing necessary components, as no alternatives may exist, jeopardizing safety and supply chains.
- The European Commission's draft proposal includes over 800 trade codes related to medical technologies, potentially affecting a wide range of devices and diagnostics.
- Both MedTech Europe and AdvaMed emphasize the need for clear exemptions in negotiation drafts to avoid harm to the medical technology sector, access to healthcare, and innovation.
- The potential increase in costs, disruptive effects on supply chains, and detrimental impact on transatlantic trade and collaboration in healthcare and medtech sectors are significant concerns for these organizations.
- Negotiators have until July 9 to reach an agreement or extend talks, and if no favorable deal is reached, the EU may target US imports, including medical devices, with potential countermeasures.
- The industry also reinforces the necessity of collaboration in technological advancements, as science, health-and-wellness, finance, business, and technology are all connected in the medical technology field.
- The medical technology industry is crucial for public health and innovation, and policymakers are being urged to consider this strategic importance when drafting negotiation agreements.
