‘More Americans will die’ if we don’t fix this problem: Lawmakers press medical supply chain bill

Rep. Nicole Malliotakis, a Republican representing Staten Island and parts of South Brooklyn, introduced a bill aimed at strengthening and diversifying U.S. medical supply chains.

The Medical Supply Chain Resiliency Act, which was co-sponsored by several members of the House, would authorize the president to reduce trade barriers and harmonize regulatory procedures for medical products with “Trusted Trade Partners” who comply with U.S. trade standards laid out in the bill. The focus on medical supply chains to trusted allies builds on Malliotakis’ recent effort to increase domestic production of pharmaceuticals.

“If COVID taught us anything it is that it’s crucial that we reduce our reliance on foreign nations, especially adversaries like Communist China, for essential lifesaving supplies such as pharmaceuticals and medical devices,” said Malliotakis. “Strengthening domestic production will enhance national security, ensure a stable supply of critical medications and medical equipment, and protect Americans from future disruptions.”

To enter into a Trusted Trade Partner agreement, a country must have demonstrated a “commitment to contribute to global health security,” complied with existing trade policies and adopted laws to protect U.S. intellectual property. Potential candidates include Singapore, Indonesia, Ireland, Poland and Switzerland.

The bill cited health care providers’ difficulty getting important goods to address the coronavirus (COVID-19) pandemic, such as drug ingredients and finished drugs. It also found that over half of these goods came from just three countries: China, Malaysia and Mexico.

The bill’s bipartisan backers on Capitol Hill hope that reciprocal reduction in trade barriers with allies will create a more reliable supply of medical goods.

“Life-threatening shortages of testing kits, drugs, and masks during the COVID-19 pandemic showed us just how fragile our medical supply chains are,” said Sen. Chris Coons, a Democrat representing Delaware, who was among the lawmakers who sponsored the bill in the Senate.

“If we are caught off-guard like we were during COVID once again, more Americans will die. Working with our most trusted trading partners to make our supply chains more resilient will strengthen our response to future public health emergencies while ensuring health care providers have access to essential medical products and patients have access to life-saving care,” he added.

While the bill is intended to reduce trade restrictions with select countries, language in the bill would allow the president to levy “additional duties” in pursuit of a Trusted Trade Partner deal. A report from Fierce Healthcare suggested that the bill’s authorization of the president to enact new tariffs clashes with many Democrats’ stated opposition to Trump’s tariff policies.

However, were the bill to pass, it would mandate Congressional oversight of these trade negotiations, including a 60-day advance written notice before the president enters into talks.

The medical supply chain push has garnered the support of industry players. PhMRA, a trade group representing the pharmaceutical industry, previously pressed the Biden administration to promote the same bill introduced in last year’s session. The U.S. Chamber of Commerce eagerly championed the recent introduction of the bill.

“The Chamber strongly supports the Medical Supply Chain Resilience Act, which will strengthen supply chains for medical goods and services while bolstering manufacturing in the U.S. and among our close allies and partners. Enhancing the resilience of medical supply chains is important to both our public health and our national security,” said U.S. Chamber of Commerce Senior Vice President for International Policy John Murphy.