AstraZeneca Says Hard Brexit Could Mean $35.5 Million in Extra Annual Costs
05 December 2017 - 2:39AM
Dow Jones News
By Adam Clark
AstraZeneca PLC (AZN.LN) has said that the U.K.'s departure from
the European Union without a new free trade agreement could result
in it paying $35.5 million per year more in duties.
In evidence submitted to parliament, the drugs company said it
would face $30.5 million in additional annual duty on current
transactions under World Trade Organization (WTO) rules.
Additionally, it would face $5 million duty on U.K. imports of
ingredients.
AstraZeneca also said that without new tariff agreements with
the EU, it would experience delays and administrative issues, which
could undermine its ability to conduct clinical trials programs in
and from the U.K.
The company said it therefore supports U.K. efforts to establish
tariff schedules with the EU before leaving the bloc, and
encouraged efforts to update the WTO's pharmaceuticals
agreement.
AstraZeneca said it would like a minimum three-year transition
period for the U.K. to negotiate new trading arrangements with the
EU, and added that it supports continued regulatory alignment.
AstraZeneca's comments were made in an evidence submission to
the Business, Energy and Industrial Strategy Committee of the House
of Commons in its investigation into Brexit's effects on the
pharmaceutical sector.
Shares are up 16 pence, or 0.3%, at 4783 pence at 1455 GMT.
Write to Adam Clark at adam.clark@dowjones.com;
@AdamDowJones
(END) Dow Jones Newswires
December 04, 2017 10:24 ET (15:24 GMT)
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