UK to increase its spending on medicine under a zero-tariff deal with US

LONDON, Dec 2 (AP): The U.K. has secured a 0% tariff rate for all U.K. medicines exported to the U.S. for at least three years, officials said Monday, in return for the U.K. spending more on new medicines.

Under the deal, the U.S. agreed to exempt U.K.-origin pharmaceuticals, pharmaceutical ingredients, and medical technology from import taxes.

The Trump administration said in return U.K. drugs firms committed to invest more in the U.S. and create more jobs.

The U.K. government said the 0% rate on all of its pharmaceuticals exports was the lowest offered to any country. As part of the deal, it said the country's National Health Service will spend around 25% more in new and effective treatments - the first major increase in such spending in over two decades.

Officials said that means U.K. health authorities will now be able to approve medicines that deliver significant health improvements but might have previously been declined purely on cost-effectiveness grounds, including breakthrough cancer treatments or therapies for rare diseases.

"This vital deal will ensure U.K. patients get the cutting-edge medicines," said Science and Technology Secretary Liz Kendall.