The European Union is in danger of sparking a global vaccine battle after a drastic plan was unveiled to limit the export of Covid-19 shots.
The move affects drug companies like Pfizer Inc. and AstraZeneca Plc, with the EU accused by an international trade group and the World Health Organization of damaging protectionism. The British government, which has not yet negotiated its exit from the bloc, has called on the EU to refrain from disrupting Britain’s vaccine supply and demand an explanation.
The escalation of Europe wants to compensate for alleged mistakes in negotiations with drug manufacturers and the slow implementation of national vaccination programs. While governments are under intense pressure as deaths increase and voters become frustrated with repeated exclusions, Pfizer CEO Albert Bourla has warned that the EU’s effort to intervene in a global supply chain could backfire.
“I am afraid it could be a loss-losing situation rather than a victory for Europe,” he told a panel at the World Economic Forum on Friday. “If a war starts that one will try to ban the final product or the supplies from free trade, I think it can create a situation that is not good for anyone.”
Europe’s struggle for a coordinated response as Germany displays elderly people from its vaccination plans for AstraZeneca, and reaffirmed its policy even after the European Medicines Agency cleared the chance for the elderly.
French President Emmanuel Macron held the line: “What I can officially say is that the feedback we have today is not encouraging for those over 60 to 65 on AstraZeneca.”
End in sight?
In a potentially hopeful sign, the EU has cleared a Covid-19 vaccine for all adults by Astra and the University of Oxford. Faced with pressure from EU politicians, Astra said later Friday it was investigating possible partnerships to increase vaccine production.
Less than a month after Brexit took effect, the curbs could also restrict the export of vaccines across the Irish border by temporarily suspending free trade provisions after Brexit.
This is because the European Commission’s decision will require drug companies to obtain prior approval before sending shots produced in the EU to other countries – and the UK, US and Canada are not on a list of more than 90 countries has not been released.
“The challenges we now face have given us no choice but to act,” said EU Trade Commissioner Valdis Dombrovskis. “It’s a race against the clock. We can not waste time because vaccines are not delivered according to schedule. ‘
The UK ‘urgently seeks a statement’ and ‘would not expect the EU as a friend and ally to do anything to disrupt legally binding vaccine supply contracts’s, Prime Minister Boris Johnson’s office said late on Friday.
The declaration mentions the most important thing to maintain the obligations over Ireland, where the EU border now runs between the Republic of Ireland and Northern Ireland.
Push back
Faced with EU pressure for faster stocks, Pascal Soriot, CEO of AstraZeneca, said the company had acquired additional vaccines in other parts of the world to boost the 31 million doses the company can currently deliver to the EU.
“We have a large quantity that we are delivering to the European Union this month, but it is not as much as we would hope,” he said.
The CEO, after the EMA approved the company’s approval, said AstraZeneca was looking at possible partnerships with other companies to increase capacity, although it could not resolve issues in the short term. Ursula von der Leyen, president of the European Commission, said the EU expects Astra to meet its obligations.
Under EU measures, vaccines may only leave the EU if the amount does not threaten the agreed deliveries in the block.
They last until the end of March, affecting the production and filling facilities operated by Astra. Moderna Inc. and Pfizer in Belgium, the Netherlands, Spain, France and elsewhere.
German Health Minister Jens Spahn defends the EU’s protest, saying it is a ‘sign’ that Europe is determined to get vaccines.
“I mean, the US is not without measures either, if I may put it that way,” he told Pfizer’s Bourla on the WEF panel.
While officials stressed that the EU did not have the cover, there was an appeal for the decision.
“Regardless of the calibration of export controls, today’s announcement sends a dangerous signal to the world,” said John Denton, secretary general of the International Chamber of Commerce.
The WHO said trade barriers are not the answer and are ultimately self-defeating.
“The people at the top of the queue are fighting over where they stand in the queue – so it seems, fighting over the cake,” said Mike Ryan, head of the organization’s emergency program.
Vaccine production workshops in Europe
The EU announcement comes a week after the already overwhelming vaccination rate hit a new major obstacle. Last Friday, Astra warned that delivery of doses in this quarter would be less than half what was initially planned. This has caused a disagreement, while the EU claims that the company has violated the conditions by prioritizing Britain over the EU.
– With help by Katharina Rosskopf, Suzi Ring, Frank Connelly, Corinne Gretler, Naomi Kresge and Ania Nussbaum
(Updates to the British Government’s response in second and eleventh paragraphs.)