EU has ‘dangerous’ dependency on Asia for critical medicines, say 11 health ministers
Europe’s dependency on critical medicines is a vulnerability that could “severely undermine” its security and defense capabilities, according to an op-ed from the health ministers of 11 European Union member states.
“Once a leader in medicine production, Europe now depends on Asia for 60-80% of its pharmaceutical supply,” according to the EU health ministers. “Price pressure on cheap generics, along with higher labor and environmental costs, are the main drivers of this shift. However, this relocation has left Europe exposed.”
The health ministers warned that all European countries have been hit with drug shortages, which they contend are “largely due to fragile supply chains that rely on long, complex value chains and just-in-time deliveries.”
Foreign countries could interrupt the supply chain for antibiotics during a geopolitical crisis and turn Europe’s dependency into a “critical vulnerability” that could “severely” undermine its security and defense capabilities, the ministers wrote.
“Without antibiotics, our health systems would simply collapse,” they warned. “This is not a far-fetched scenario,” as 80% to 90% of the world’s antibiotics “are made in Asia — mostly China.”
Their warning comes as the European Commission is set to unveil the Critical Medicines Act (CMA) in a Strasbourg plenary session on Tuesday.
“The CMA is meant to address severe medicines shortages and medical device shortages, and reduce external reliance on critical medicines and ingredients, as well as ensure the supply of affordable medicines,” according to the European Parliament’s announcement.
In Tuesday’s plenary session, members of the European Parliament will query the European Commission on how the new proposal will complement the reform of the EU’s pharmaceutical legislation, as the EU looks to boost manufacturing in Europe and to support joint procurements.
In Sunday’s op-ed, the 11 health ministers argue it’s “imperative” the EU integrates the CMA into Europe’s broader security framework like the U.S. Defense Production Act (DPA) — a Cold War-era law which allows the American president to require companies to prioritize and accept contracts for materials and services deemed necessary to national defense.
“The DPA enables the U.S. government to map critical pharmaceutical supply chains, identify vulnerabilities, and direct investments to strengthen domestic production,” according to the health ministers. “It also allows authorities to issue priority-rated contracts, which require suppliers to prioritize government orders, ensuring that essential medicines are delivered without delay during crises.”