The ban on exporting covid vaccine from the UK and the EU is growing

LONDON – Tensions are high between the UK and the European Union, as the 27-member bloc is considering restricting exports of Covid-19 vaccines across the English Channel.

The European Union is increasingly frustrated at AstraZeneca for not meeting its delivery goals on the block. The pharmaceutical firm reduced the number of vaccines it will deliver to the EU twice during the first quarter and another in the second quarter. As a result, European officials are concerned that any future problems could undermine their vaccination targets.

AstraZeneca has met its delivery targets in the UK, where the vaccination rate is higher than in the EU, although some of these vaccines come from European Union plants. The UK placed its order for AstraZeneca shots before the EU.

“The EU must ensure the delivery of vaccines to Europeans in accordance with the contractual obligations of companies. We will review the various tools at our disposal for this purpose, including the use of the export authorization system in the its current or adapted form, “the European Commission spokesman told CNBC on Monday.

In late January, the EU approved restrictions on Covid-19 vaccine exports, but they can only be applied if a company does not comply with its contractual obligations to the region and if the vaccines are targeted at a country considered non-vulnerable.

This is what allowed Italy to stop a shipment of AstraZeneca vaccines to Australia a couple of weeks ago, the only case of European authorities preventing Covid’s shots from leaving the region. However, the legislation will expire at the end of March.

“There is an ongoing reflection process in the EU and we will be consulting with member states. All options are on the table,” the European Commission spokesman added by email. The issue is expected to be discussed by the 27 heads of state on Thursday during a European summit.

Speaking to a group of newspapers over the weekend, European Commission President Ursula von der Leyen said: “We have the possibility of banning planned exports. This is the message to AstraZeneca:” fulfills the contract with Europe before starting to deliver to other countries. “

Von der Leyen had already called for tougher export restrictions last week.

“We will reflect on whether exports to countries that have higher vaccination rates than us are still proportionate,” he said Wednesday.

Since last week, the European Union has exported 41 million doses of Covid shots to 33 countries. The main recipient has been the United Kingdom

The UK government did not confirm when it was contacted by CNBC on Monday whether Prime Minister Boris Johnson should talk to European leaders about vaccine exports. A spokesman for the prime minister said Monday that the UK government believes in the importance of countries not putting restrictions on vaccine exports and that nations should work together, Reuters reported.

However, UK Defense Secretary Ben Wallace told Sky News on Sunday that blocking vaccines would be “counterproductive” and damage the EU’s reputation.

Pfizer, whose vaccine has been used the most across the EU so far, said the region should not block the export of Covid shots because the company needs UK raw materials. Imposing restrictions on vaccines could lead the UK to retaliate by preventing ingredients from reaching EU plants.

A Pfizer spokesman told CNBC on Monday that its position aligns with the European Federation of Pharmaceutical Industries and Associations, which said in January that export bans risk taking retaliatory measures “given the global nature of vaccine supply lines “.

The UK aims to end vaccination of its adult population with the first dose of Covid shots in July.

Despite a “hard” start to deployment in the European Union, as von der Leyen described last week, the bloc also intends to achieve herd immunity in mid-July.

“On July 14 we have the opportunity to achieve immunity,” Thierry Breton, European Commissioner for the Internal Market, told French television channel TF1 on Sunday.

The EU’s goal will depend on the fulfillment of delivery contracts by four pharmaceutical companies and the ability of member states to vaccinate their populations.