Export ban on covid vaccines in the UK and the EU is increasing

LONDON – Tensions between the UK and the European Union are high as the 27-member bloc is considering restricting exports of Covid-19 vaccines across the English Channel.

The European Union is increasingly frustrated with AstraZeneca for failing to meet its delivery goals to the block. The pharmaceutical company has cut the number of vaccines it will deliver to the EU twice in the first quarter and once in the second quarter. As a result, European officials are concerned that any future problems could undermine their vaccination goals.

AstraZeneca has reached its delivery targets for the UK – where vaccination coverage is higher than in the EU – although some of these vaccines come from plants in the European Union. The UK placed its order for the AstraZeneca footage ahead of the EU.

“The EU must ensure the supply of vaccines to Europeans in accordance with companies’ contractual obligations. We will review the various tools at our disposal for that purpose, including the use of the export licensing regime in its current or modified form,” spokesman the European Commission told CNBC Monday.

At the end of January, the EU approved restrictions on the export of Covid-19 vaccines, but these can only be implemented if a company does not honor its contractual obligations with the region and if the vaccines go to a country that is not considered vulnerable.

This allowed Italy a few weeks ago to stop a shipment of AstraZeneca vaccines to Australia – the only case of European authorities preventing Covid injections from leaving the region. However, the legislation will expire at the end of March.

“There is an ongoing reflection process in the EU and we will be consulting Member States. All options are on the table,” added the European Commission spokesperson via email. The issue is expected to be discussed by the 27 heads of state at a European summit on Thursday.

Over the weekend, European Commission President Ursula von der Leyen told a group of newspapers: “We have the option to ban planned exports. That’s the message to AstraZeneca,” you fulfill your contract with Europe before you start. deliver to other countries. ‘. “

Von der Leyen had already asked for stricter export restrictions last week.

“We will consider whether exports to countries with higher vaccination coverage than us are still proportionate,” she said Wednesday.

As of last week, the European Union has exported 41 million doses of Covid shots to 33 countries. The largest recipient was the UK

The British government did not confirm on Monday, when contacting CNBC, whether Prime Minister Boris Johnson would speak to European leaders about vaccine exports. A spokesman for the prime minister said later on Monday that the British government believes it is important that countries do not impose export restrictions on vaccines and that countries should work together, Reuters reported.

However, UK Defense Secretary Ben Wallace told Sky News on Sunday that blocking vaccines would be “counterproductive” and damage the EU’s reputation.

Pfizer, whose vaccine has been the most used in the EU to date, reportedly said the region should not block exports of Covid shots because the company needs raw materials from the UK. Restricting vaccines could lead the UK to retaliate by preventing ingredients from reaching EU factories.

A Pfizer spokesperson told CNBC on Monday that its position is in line with the European Federation of Pharmaceutical Industries and Associations, which said in January that export bans contain retaliatory measures “given the global nature of the vaccine supply lines.”

The UK aims to vaccinate its adult population with the first dose of Covid injections by July.

Despite a “difficult” start to the rollout in the European Union, as described by von der Leyen last week, the bloc also plans to achieve immunity to the herd by mid-July.

“On July 14, we have the opportunity to achieve immunity,” Thierry Breton, European Commissioner for Internal Market, told French TV channel TF1 on Sunday.

The EU’s target will depend on the fulfillment of supply contracts by four pharmaceutical companies and on the ability of Member States to vaccinate their populations.