Nearly every day, new international trade policies are being signed into action with many having a deep impact on healthcare. These agreements shape the cost and accessibility of healthcare worldwide. With new international trade policies being negotiated by the Trump administration, let’s take a look at why international trade agreements play such a significant role in shaping healthcare around the world.
A great way to see the effect of trade agreements on healthcare is through prescription drugs. Many prescriptions have “Not Made In The USA” written on the side. This is because many ingredients that are combined into prescriptions are imported from multiple other countries. Due to certain trade agreements, when multiple ingredients are imported from different countries to make prescriptions, it may increase the price of manufacturing for the pharmaceutical company. In order to balance these higher costs, the price is increased for consumers. The effect starts from the top and eventually trickles down to consumers. But the impact doesn’t stop there. Trade agreements have a very similar effect to the cost of medical devices.
There can be a large variation in the price of medical devices, especially when imported from foreign nations. Trade agreements are a massive factor in the variation of cost. A large amount of medical devices like diagnostic machines and surgical instruments are usually imported from other countries. Because of this, many devices manufactured in one nation may have tariffs placed on them, while others may not and are possibly priced at a reduced cost. The North American Free Trade Agreement (NAFTA), for example, allowed for the free trade between the U.S., Canada, and Mexico. This helped reduce costs and made it easier for people in all three countries to get access to these goods. It’s possible that if this agreement wasn’t in effect, the costs of imported medical goods across all three nations would significantly increase.
Although trade agreements can bring in more money for a nation and allow for the exchange of goods, they can also create tough issues for lawmakers because there’s a tough balance that needs to be struck. The benefits of trade must be balanced with accessibility and affordability. This isn’t the easiest task in the world. Many countries today may feel the pressure to adjust agreements in order to make pharmaceuticals or medical devices more affordable, while also having to obey existing trade agreements. This may put lawmakers in a tough position to balance all of these factors together.
International trade agreements carve and shape the accessibility and cost of products all around the world, including healthcare. They can open the door to affordable prescriptions and medical devices, but they can also raise costs and create tough issues for legislators. But as more trade agreements are being signed into action, it is important for legislators to strike a balance between benefiting from trade and access to affordable healthcare products.
Leave a Reply