The Biden administration has conveyed to New Delhi that it understands India’s pharmaceutical requirements and promised to give the matter a due consideration, observing that the current difficulty in the export of critical raw materials needed to manufacture Covid-19 vaccines is mainly due to an Act that forces American companies to prioritise domestic consumption.
President Joe Biden and his predecessor Donald Trump had invoked the war-time Defence Production Act (DPA) that leaves US companies with no option but to give priority to the production of Covid-19 vaccines and Personal Protective Equipment (PPEs) for domestic production to combat the deadly pandemic in America, the worst-hit nation.
Since the US has ramped up the production of Covid-19 vaccines mostly by Pfizer and Moderna so as to meet the goal of vaccinating its entire population by July 4, the suppliers of its raw material, which is in high demand globally and sought after by major Indian manufacturers, are being forced to provide it only for domestic manufacturers. Among other things, the DPA, that was enacted in 1950, authorises the president to require businesses to accept and prioritise contracts for materials deemed necessary for national defence, regardless of a loss incurred on business.
The issue received global attention in recent days after Adar Poonawalla, CEO of the Serum Institute of India (SII), tagged President Biden in a tweet. Respected @POTUS, if we are to truly unite in beating this virus, on behalf of the vaccine industry outside the U.S., I humbly request you to lift the embargo of raw material exports out of the U.S. so that vaccine production can ramp up. Your administration has the details,” he tweeted.
The SII is the world’s largest producer of Covid-19 vaccine. Neither the US nor India has released details of the raw material that it is asking from the US. In recent weeks, India’s Ambassador to the US Taranjit Singh Sandhu has been taking up the matter with the Biden administration officials. During his meetings with the US interlocutors, the top Indian diplomat has sought a smooth supply of certain inputs for production of Covid-19 vaccines in India.
In addition, officials from the two sides have held discussions to ease the supply of critical materials, considering their increased requirements in both the US and India. US side has clarified that there are no export restrictions on such items and that domestic regulations have only prioritised use of these materials for production of vaccines in the US, sources familiar with the conversations said.
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