EU adopts free-trade pharma pact[fr][de] 

The agreement, reached on 12 January 2007, eliminates customs duties between the EU, Switzerland and US on finished pharmaceutical products and on the chemical intermediates used in their production. 

It replaces a previous agreement, from 1994, which already enabled many pharmaceuticals to benefit from zero-tariffs, but did not cover any of the more recent products. With this review, 1,290 additional products are added to the 7,329 currently benefiting from duty-free treatment. 

The EU imports more than 80% of its pharmaceuticals from the US and Switzerland and the European Chemical Industry Council (CEFIC) believes that the agreement could save European pharmaceutical companies up to €230 million in 2007 alone. 

The pact is open to additional members and Japan – the EU's fourth trading partner in pharmaceutical products – is expected to join later this year. 

EU Trade Commissioner Peter Mandelson said: "This agreement puts free trade at the service of European businesses and consumers. It is a show of confidence in the global competitiveness of the EU pharmaceutical industry, and a signal of our commitment to ensuring that the modern trading environment is in step with innovation."