Britain expects greater investment from pharmaceutical companies in exchange for agreeing to pay higher drug prices as part of ongoing trade discussions with the United States, Finance Minister Rachel Reeves said on Thursday.
The UK and the US have been in negotiations over drug pricing as London seeks favorable terms on pharmaceutical tariffs in its trade talks with Washington. Reeves noted that the government is working “very closely” with both the pharmaceutical industry and US officials to secure reduced tariffs for the sector. However, she also acknowledged industry concerns regarding the low prices paid by Britain’s National Health Service (NHS) and other related challenges.
“We do need to make sure that we are an attractive place for pharmaceuticals, and that includes on pricing, but in return for that, we want to see more investment flow to Britain,” Reeves told reporters in Washington where she is attending meetings of world finance officials.
“We’ve been very successful with the U.S. in terms of negotiating lower tariffs … and of course, we want that to be the case with pharmaceuticals as well. But we are in the middle of those negotiations at the moment.”
U.S. President Donald Trump has urged European nations to increase their payments for American-made drugs, while several major pharmaceutical companies have suspended investments in Britain, citing a challenging business environment.
Britain reached a partial tariff agreement with the United States in May, which included a pledge to secure a preferential outcome for the pharmaceutical sector as London committed to “improve the overall environment” for businesses.
President Donald Trump has proposed a new 100% tariff on companies that fail to establish manufacturing operations in the U.S. Meanwhile, Britain’s Science Minister Patrick Vallance has acknowledged the need for the National Health Service (NHS) to reverse the trend of declining expenditure on medicines.
Finance Minister Rachel Reeves also criticized China’s decision to tighten export controls on rare earth materials, calling it “the wrong decision,” after Beijing imposed restrictions on exports involving key processing and manufacturing technologies.
