Urging the United States Government to Keep the American People Safe and Healthy by Decreasing the Nation’s Dependency on Foreign Manufactured Pharmaceutical Ingredients and Medicine, Particularly from China

Summary

While experts disagree on the exact percentage with some saying that the precise figure is not known, according to the US Food and Drug Administration (FDA) most of the active pharmaceutical ingredients (API) on which Americans rely are manufactured outside the United States – of particular concern are those manufactured in China. This model policy urges the US Congress to take steps to decrease the nation's dependence on foreign manufactured medicines, particularly from China to ensure the continuity and safety of the supply of the products and keep the American people safe and healthy.

Urging the United States Government to Keep the American People Safe and Healthy by Decreasing the Nation’s Dependency on Foreign Manufactured Pharmaceutical Ingredients and Medicine, Particularly from China

WHEREAS, many citizens of the United States depend on pharmaceutical drugs to cure, treat, or prevent disease and these drugs can result in lifesaving and life sustaining outcomes; and

WHEREAS, China has become the world’s largest supplier of active pharmaceutical ingredients (API), and the U.S. Food and Drug Administration estimates that most active pharmaceutical ingredients are manufactured outside of the United States, many in China; and

WHEREAS, China’s dominance in supplying the United States’ chemical and pharmaceutical sector has driven out many U.S. based pharmaceutical companies resulting in a loss of capacity to domestically produce vital drugs used by patients every day; and

WHEREAS, the increased dependence on Chinese produced APIs creates a national security risk that cannot be overstated as it results in U.S. dependence on foreign-sourced pharmaceuticals; and

WHEREAS, in the event of conflict, or as a tool of negotiation, China could weaponize its position in the pharmaceutical supply chain to the disadvantage and peril of the citizens of the United States by manipulating or cutting off the supply of active pharmaceutical ingredients thereby limiting its ability to meet the needs and demands of those Americans dependent on medicines; now, therefore,

BE IT RESOLVED by the legislature of the state of [INSERT STATE], that it urges the US Congress to take steps consistent with free market principles to decrease the nation’s dependence on foreign manufactured medicines, particularly from China to ensure the continuity and safety of the supply of the products and keep the American people safe and healthy; and

BE IT FURTHER RESOLVED that the US Congress develop a White Paper on the methods, materials, and timeline necessary to phase out or reduce American dependence on the manufacture of APIs by potentially adversarial powers, such as China and Russia, and that it reject government mandates and instead incentivize through targeted tax reforms or other positive reinforcement the creation or reestablishment of API factories in the United States.

Adopted by the Federalism and International Relations Task Force: December 6, 2019

Approved by the ALEC Board of Directors: January 24, 2020

Amendments adopted by the Federalism and International Relations Task Force: June 16, 2020

Amendments approved by the ALEC Board of Directors: July 7, 2020