Published By : 13 Jun 2017 | Published By : QYRESEARCH
With Brexit, concerns such as research and development disruption, regulatory divergence, and border delays are posing hazard to the pharmaceutical industry.
Despite ongoing debate analyzing the impact of Brexit, the pharmaceutical industry has remained a less of a topic of discussion compared to financial services sector and manufacturing supply chain. Contrary to the current scenario, pharmaceuticals make one of the fastest growing industries and they have greatly benefited from the EU integration in the past. As per reports, the pharmaceutical industry in the EU has reached nearly €225 billion in the last 15 years. Furthermore, the industry also exhibited a dramatic rise in the employment. Over the past few years, exports from the EU pharmaceutical industry have nearly tripled itself with the majority of gains obtained from increased-EU transactions. Contributing about 10 per cent of the GDP, the pharmaceutical sector has emerged as the third largest industry in the UK.
Brexit Could Create Bottlenecks in Pharmaceutical Trade
Fortunately, the European Union has long taken up zero most-favored-nation tariff. This means, the tariff burden on the pharmaceutical industry will not prove adverse. This in turns connotes that the pharmaceutical industry will remain immune to the ill effects of Brexit, even as the UK and EU treat each other in a multilateral framework at the WTO.
However, tariffs cannot be considered the sole barrier to trade. The pharmaceutical trade could be hampered by various non-tariff barriers. Particularly, the strengthening immigration control and stringer border checks could delay the transfer of pharmaceutical products from or to the UK. This will lead to increased paperwork thus creating several bottlenecks in pharmaceutical trade.