UK and EU ban on vaccine export growth

Ursula von der Leyen, President of the European Commission.

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LONDON – Tensions are high between the UK and the European Union as the 27-member bloc considers considering restricting the export of Covid-19 vaccines across the English Channel.

The European Union is increasingly frustrated with AstraZeneca for not respecting its delivery targets on the block. The pharmaceutical firm has reduced the number of vaccines it will deliver to the EU twice in the first quarter, and once in the second quarter. As a result, European officials are concerned that future problems could undermine their vaccination goals.

AstraZeneca has reached its delivery targets for the UK – where the vaccination rate is higher than in the EU – even though some of these vaccines come from plants in the European Union. The UK had earlier placed its order for the AstraZeneca surveys with the EU.

“The EU must ensure deliveries of vaccines to Europeans in accordance with the contractual obligations of companies. We will review the various instruments at our disposal for this, including the use of the export authorization system in its current or modified form,” said a. European Commission spokesman told CNBC on Monday.

At the end of January, the EU approved restrictions on the export of Covid-19 vaccines, but this can only be implemented if a company does not fulfill its contractual obligations with the region and if the vaccines are on their way to a country. which is not considered vulnerable.

We have the option to ban planned exports. This is the message to AstraZeneca.

Ursula von der Leyen

President of the European Commission

That was what enabled Italy to stop a shipment of AstraZeneca vaccines to Australia a few weeks ago – the only case in which European authorities prevented Covid shots from leaving the region. However, the legislation must expire at the end of March.

“There is an ongoing process of reflection in the EU, and we will consult the Member States. All options are on the table,” the European Commission spokesman added in an email. The issue is expected to be discussed by the 27 heads of state during a European summit on Thursday.

This past weekend, European Commission President Ursula von der Leyen spoke to a group of newspapers: “We have the option of banning planned exports. This is the message to AstraZeneca: ‘You fulfill your contract with Europe before you will deliver to other countries. ‘. “

Von der Leyen already called for stricter export restrictions last week.

“We will consider whether exports to countries with higher vaccination rates if we are still proportionate,” she said on Wednesday.

As of last week, the European Union has exported 41 million doses of Covid shots to 33 countries. The largest recipient was the United Kingdom

The British government did not call CNBC on Monday to confirm whether Prime Minister Boris Johnson would speak to European leaders about vaccine exports. A spokesman for the Prime Minister said later Monday that the British government believed it was important for countries not to impose restrictions on vaccines and for countries to work together, Reuters reported.

However, British Defense Secretary Ben Wallace told Sky News on Sunday that the blockade of vaccines would be “counterproductive” and damage the EU’s reputation.

Pfizer weighs in

Pfizer, whose vaccine has been the most widely used in the EU so far, said the region should not stop exporting Covid shots because the company needed raw materials from the UK. The imposition of restrictions on vaccines could lead to the United Kingdom taking revenge by preventing ingredients from reaching EU plants.

A Pfizer spokesman told CNBC on Monday that his position was in line with the European Federation of Pharmaceutical Industries and Associations, which said in January that the export ban could take risks of retaliation “given the global nature of vaccines.”

The UK plans to finish the first dose of Covid shots by July to vaccinate its adult population.

Despite a “difficult” start to implementation in the European Union, as described by von der Leyen last week, the bloc also plans to achieve herd immunity by mid-July.

“By July 14, we have the opportunity to reach immunity,” European Internal Market Commissioner Thierry Breton told French TV channel TF1 on Sunday.

The purpose of the EU will depend on the fulfillment of supply contracts by four pharmaceutical companies and on the ability of the member states to vaccinate their population.

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