Pharma sector to prosper from Indo-South Korean trade deal

The pharmaceutical sector should prosper from a comprehensive new trade deal between India and South Korea that reduces import duties on a wide range of medicine exports from both countries.

India has promised to phase out its pharmaceutical import duties over seven years for penicillin, antibiotics, insulin, hormones, vitamins, antifungals, antihistamines, anticancer, TB, hypertension and many other medicines. In contrast, South Korea is prepared in some instances to remove duties using a swifter schedule: for instance, immediately upon ratification for human vaccines, preparations containing aspirin, a wide range of vitamins and anti-allergic agents, among others; and four years to scrap tariffs for streptomycins and some anti-cancer and TB drugs.

The deal generally does not afford each country the same benefits, reflecting their differing stages of economic development. It could be written into a World Trade Organisation Doha Development Round deal next year, should it be struck. If not, this bilateral agreement will stand anyway.