The Transatlantic Trade and Investment Partnership Agreement (TTIP) promises great benefits for EU companies and citizens and for the individual EU economies. The benefits from TTIP are significant because the pharmaceutical industry has a strong economic footprint on the EU economy. The pharmaceutical industry brings value to the EU economy by:
Providing 600,000 highly productive jobs
Supporting an additional 2.0 million jobs in other industries in the EU
Creating long-term employment in the EU via its high R&D intensity
Developing innovative medicines that improve health and well-being of EU citizens
Ensuring good market access to foreign markets is critical to continued export growth and job creation in the pharmaceutical industry and related industries. While there are virtually no tariffs on Transatlantic trade in pharmaceutical products, US non-tariff barriers remain high and impose a cost burden to EU pharmaceutical companies equivalent to a tariff of 19 per cent.
Consequently, an ambitious pharmaceutical chapter that aligns regulatory regimes across the Atlantic and reduces unnecessary duplicative costs will reduce such barriers and deliver benefits from TTIP to companies and citizens throughout the EU. Our study finds that an ambitious pharmaceutical chapter in TTIP:
Increases EU pharmaceutical exports to non-EU countries with 9 billion EUR
Creates 19,000 new high value jobs in the EU pharmaceutical industry
Supports around 60,000 additional jobs in related industries in the EU
Improves the efficiency of EU regulatory resources
Frees up resources for EU pharmaceutical companies that can be invested i.e. in the development of new medicines
Creates 8,000 jobs in US pharmaceutical affiliates in the EU if TTIP lowers FDI barriers by 25 per cent.
The study is commissioned by EFPIA
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