Coronavirus shows U.S. too dependent on cheap medical imports, USTR says
Reuters
Published Mar 30, 2020 09:05PM ET
WASHINGTON (Reuters) - U.S. Trade Representative Robert Lighthizer on Monday said the United States would seek to promote more domestic manufacturing of key medical supplies in light of the strategic vulnerabilities laid bare by the coronavirus pandemic.
Lighthizer told trade ministers from the Group of 20 major economies (G20) that Washington agreed there was a need to resolve supply chain disruptions and be aware of the impact of its actions on neighbors.
"Unfortunately, like others, we are learning in this crisis that over-dependence on other countries as a source of cheap medical products and supplies has created a strategic vulnerability to our economy," Lighthizer said.
"For the United States, we are encouraging diversification of supply chains and seeking to promote more manufacturing at home."
He warned against efforts to use the health and economic crisis to push "other agendas," either in trade or elsewhere, and said that such efforts would sow distrust, however. He did not elaborate.
Some U.S. officials are concerned that China could seize on the crisis to push for tariff relief before fulfilling its purchase commitments under a Phase 1 U.S.-China trade deal signed in January.
Some U.S. businesses hit by the tariffs have also urged Washington to provide relief at a time of widespread shutdowns across the United States aimed at curbing the spread of the virus. Others are pressuring the Trump administration to keep the tariffs intact, however.
White House trade adviser Peter Navarro last week denied the Trump administration was considering a three-month deferral of tariff payments on imported goods, saying such a move would "enrich China at the expense of American workers."
Navarro is also crafting an executive order that would expand "Buy America" provisions to the medical and pharmaceutical sectors - a change that Chinese officials have described as unrealistic and unwise.
Navarro last week said 97% of antibiotics sold in the United States came China.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.