Stents, knee implants undergird Trump ’ s new trade war with India

The Trump administration yesterday opened hostilities in a pair of new trade wars, using India’s price caps on coronary stents and knee implants as the centerpiece of the new policy there. The White House said it plans to end India’s preferential trade status in 60 days under the Generalized System of Preference. “India’s termination from GSP follows its failure to provide the United States with assurances that it will provide equitable and reasonable access to its markets in numerous sectors,” U.S. trade representative Robert Lighthizer wrote yesterday, rebuffing India’s proposal to open up its agriculture market to U.S. firms. “Despite intensive engagement, India has failed to take the necessary steps to meet the GSP criterion.” Caps enacted by India’s National Pharmaceutical Pricing Authority on knee implants and cardiac stents are at the core of the dispute, having caused major medtech players to seek to withdraw their devices from the market there. In April 2017, the NPPA rejected applications from Medtronic (NYSE:MDT) and Abbott (NYSE:ABT) to pull their respective Resolute Onyx and Absorb stents (Abbott has since taken Absorb off the global market, citing lackluster sales). The NPPA is already considering further caps for other medical devices. At some 2,000 products worth a collective $5.6 billion, or roughly 12% of exports to the U.S., India is the largest trade partner under the GSP. Removing protections from tho...
Source: Mass Device - Category: Medical Devices Authors: Tags: Business/Financial News Featured Orthopedics Stents Wall Street Beat India tariffs Source Type: news