LONDON, ENGLAND – The United Kingdom has finalized a new trade agreement that guarantees a zero percent tariff on all medicines exported to the United States for at least the next three years, providing a major boost to British pharmaceutical companies. In exchange, the U.K. has committed to significantly increasing its spending on new medicines. The agreement ensures that U.K.-manufactured pharmaceuticals, key drug ingredients, and medical technologies will enter the U.S. market without facing import taxes. As part of the deal, U.K. drugmakers have also pledged to expand their investments inside the United States and create additional American jobs.
The U.K. government announced it will raise spending on new and effective treatments by about 25 percent, marking the first substantial increase in this area in more than two decades. Leaders on both sides described the agreement as a win for patients, innovation, and economic growth. U.K. officials said the deal will help patients gain faster access to breakthrough treatments while strengthening the global competitiveness of British drug manufacturers. U.S. health officials said the agreement improves balance in pharmaceutical trade and supports innovation across both countries. The deal builds on a broader trade framework previously agreed upon that also targeted reduced tariffs on British cars, steel, and aluminum in return for greater access for U.S. products in the U.K. market.