EU wins WTO case against Turkey's “discriminatory practices” regarding pharmaceutical products
Turkey must remove its localization and prioritization measures.
“Discriminatory practices” regarding pharmaceutical products
The European Commission (EC) issued a release announcing an appeal arbitration award by the World Trade Organization (WTO) in the case the EU brought against Turkey on pharmaceutical products.
According to the EC release, the appeal award finds that Turkey’s localization measure discriminates against foreign pharmaceutical products, as it is not a form of government procurement of pharmaceutical products, and it is not designed to achieve public health objectives nor to secure compliance with laws requiring Turkey to confirm accessible, effective and financially sustainable healthcare for its population.
- The discriminatory practices constitute the requirement for foreign producers of pharmaceuticals to move their production to Turkey for those pharmaceuticals to be eligible for reimbursement under Turkish social security schemes. As such, it is incompatible with Turkey's WTO commitments.
- The panel also found that Turkey cannot prioritise reimbursement reviews and marketing applications of domestic pharmaceuticals over foreign ones.
The ruling is the first WTO appeal arbitration award under Article 25 of the WTO dispute settlement understanding (DSU) and the first WTO appeal ruling in more than two years
Next steps
Turkey must remove its localization and prioritization measures either immediately or within a period of time negotiated with the EU or fixed by a WTO arbitrator.
For more information, contact a professional with KPMG’s Trade & Customs services:
Doug Zuvich |
John L. McLoughlin |
Andy Siciliano |
Steve Brotherton |
Luis (Lou) Abad |
Irina Vaysfeld |
Amie Ahanchian |
Christopher Young |
Gisele Belotto |
George Zaharatos |
Andy Doornaert |
Jessica Libby Principal E: jlibby@kpmg.com |
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