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Prime ministers

EU-Vaccine Export Ban Sparks Trade War Fears Amid Mounting Tensions

Strategic Insights

— 2 min read

As the EU considers banning vaccine exports to countries with higher vaccination rates, British Prime Minister Boris Johnson has warned that pharmaceutical giants will take their business to Britain, sparking fears of a trade war. The EU's latest move is aimed at restricting exports of vaccines to countries like the UK, which has far outstripped the EU in vaccinations. The bloc has so far managed only 12% of adult vaccinations, while Britain has given a first dose to more than half its adult population.

Key Takeaways:

  • The EU's new rules target countries that manufacture coronavirus jabs but do not export them to the EU, sparking fears of a trade war with the UK.
  • Britain has far outstripped the EU in vaccinations, with more than half of its adult population receiving a first dose, compared to the EU's 12%.
  • The EU's trade commissioner, Valdis Dombrovskis, said the bloc had exported about 10.9 million vaccines, mostly from the Belgian Pfizer plant, to the UK.
  • British officials have been trying to negotiate with Brussels to avoid the ban, while Mr. Johnson could accept sharing supplies from the Halix plant in the Netherlands.
  • The commission threatens to block the export of millions of AstraZeneca vaccines from the Halix plant, as part of its efforts to restrict exports to the UK.
  • The UK and EU released a joint statement saying talks would continue, but there had not been any breakthrough.

Statistics:

  • The EU has managed only 12% of adult vaccinations, compared to Britain's 50%+.
  • The EU has exported 10.9 million vaccines to the UK.
  • The EU's new rules target countries that manufacture coronavirus jabs but do not export them to the EU.
  • The commission's proposal sparked frustration among some member states, who suspect Brussels of trying to bounce them into export bans.
  • The bloc's export ban will be in place for an initial six weeks, with manufacturers required to ask for permission to export jabs.

Sources:

  • Boris Johnson in the Commons liaison committee, "I would just gently point out to anybody considering a blockade, or interruption of supply chains, that companies may look at such actions and draw conclusions about whether or not it is sensible to make future investments in countries where arbitrary blockades are imposed."
  • Valdis Dombrovskis, EU trade commissioner, saying, "Open roads should run in both directions."
  • The Daily Telegraph, with Valdis Dombrovskis stating the UK as an example of a country that could be hardest hit by the ban.
  • La Stampa newspaper, quoting an EU source, that the shipment of 29 million doses of the Oxford University jab was thought to be secretly bound for the UK.
  • AstraZeneca statement, saying 16 million doses were "waiting for quality control release to be dispatched to Europe" while the other 13 million were to go to countries in the Covax vaccine-sharing scheme.

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