North America depends on foreign countries for essential medicines, which makes the region vulnerable to health emergencies.

Alejandro Sanders, executive director of the Mexican Pharmaceutical Council, issued this warning at hearings organized by the USTR on the six-year review of the USMCA in Washington on December 3.

Essential medicines

The Mexican Pharmaceutical Council represents the leading Mexican pharmaceutical laboratories engaged in production, innovation, research, and development. Its members account for more than 10% of employment in the pharmaceutical industry in Mexico. 

Having invested more than $2 billion over the past five years and maintaining a commercial and operational presence in more than 40 countries, the members of this Council work together to promote the development and growth of the pharmaceutical industry in North America. 

“North America continues to depend structurally on a known market and external suppliers for a large part of its essential medicines, active pharmaceutical ingredients, APIs, and key raw materials (KSM),” Sanders said. 

From his perspective, this is not just a trade issue. It is a strategic vulnerability for the region’s health security and industrial competitiveness. But North America also has strengths. Mexico provides a world-class base for the manufacture of finished doses. 

Opportunities

Sanders explained that the Mexican pharmaceutical industry contributes efficiency, compliance, geographic proximity, and shared values that enable safe, fast, and efficient delivery to the U.S. market. Together, the United States, Mexico, and Canada have already laid the foundations for the most competitive pharmaceutical region in the world. 

“This review is our opportunity to make the USMCA the platform for leveraging these strengths,” Sanders said. “First, maintaining zero tariffs for regionally manufactured products is critical.” 

This protects affordability, supports reinvestment, and helps compete against heavily subsidized production outside the hemisphere. 

Second, Sanders argued that debate on modernized rules of origin needs to be encouraged, especially for essential medicines, APIs, and KSMs.

These reforms should reward genuine North American content, prevent transshipment, and be based on accountability through strategic joint investments.

And third, the Mexican pharmaceutical industry believes in a strong, more predictable, and fully harmonized intellectual property framework. 

“This will help balance innovation and timely access to generics through goals that are ultimately mutually reinforcing, where the rules are clear and transparent,” Sanders added.