The landmark UK-US trade pact slashed tariffs on British steel and car exports but at a cost it seems – and this include some strict national security measures
Britain must strip Chinese ingredients from UK-made medicines bound for the US after pressure from Donald Trump, it is reported today.
The UK has had to swallow strict national security measures as part of the landmark UK-US trade pact. Although the deal has slashed tariffs on British steel and car exports, a clause was also agreed to stop the UK becoming a “backdoor” for Chinese goods entering the American market.
It means any drugs exported from Britain to America must now be free from Chinese-made chemicals and components, it is thought. A Government source said: “We are going to work with the pharmaceutical industry to secure the supply chain.”
The US President has long accused the Communist giant of rigging trade, stealing IP and flooding Western markets with cheap state-backed goods. However, the UK is heavily dependent on Chinese drug factories as around 80 per cent of the chemicals used in global medicine production are sourced from China.
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Medicines for British patients can still include ingredients from China as the restriction applies only to exports. However, according to The Sun, insiders fear Mr Trump’s clause could fuel wider pressure to cut ties with Beijing across the board.
China’s foreign ministry spokesman, Lin Jian, told the Financial Times: “Co-operation between states should not be conducted against or to the detriment of the interests of third parties.”
When Mr Trump last week suggested avoiding trade with China would result in substantial savings for the country, critics challenged his logic, questioning the accuracy of his mathematical claims.
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And campaigners say this clause highlights both the US and the UK must diversify to stop relying on industries in China. Luke de Pulford, of the Inter-Parliamentary Alliance on China, said: “The UK cosplays as tough on China to placate the US, but when it comes to the actual policy, we don’t deliver. The UK is too dependent on Beijing for pharmaceuticals and, like the US, needs to diversify. If US consumers need to be protected from dependency on totalitarian Xi for medicines, so do we.”
UK officials say further talks are ongoing and the government claims Britain will receive “preferential treatment” if Washington imposes new tariffs on drug imports.
A Department for Business and Trade spokesperson told The Sun: “We signed a deal with the US in the national interest to secure thousands of jobs across key sectors, protect British businesses and lay the groundwork for greater trade in the future. We will discuss supply chains with the US as part of the next phase of negotiations in the weeks and months ahead.”