The United States leads exports of medical devices in the world
The United States led exports of medical devices in 2020, albeit with increasing competition from China.
More precisely, this product group covers medical, surgical, dental or veterinary instruments and devices.
For example, it includes electrocardiographs, ultrasonic or magnetic resonance imaging devices, and dental lathes.
Medical devices worth $ 28.023 billion were exported from the United States in 2020, a 6% year-on-year contraction.
Other relevant exporters in the same year were: Germany with external sales of 16,705 million dollars (an increase of 3% per year), the Netherlands with 12,930 million (0%), China with 8,904 million (20%) and Mexico with 8,338 million (0%), according to data from the World Trade Organization (WTO).
Corresponding US sales comprised 20.9% of total global medical device exports in 2020.
However, this portion has dropped in recent years: it went from 23.8 to 22.7% from 2016 to 2017, and then dropped from 22.4 to 22.1% in the next two years.
In contrast, China’s share has increased from 5% in 2016
Medical devices
For Medtronic, a medical device company registered in the United States and Ireland, increasing global economic competition and trade tensions between the United States and China pose a risk to its business.
Although the company has been able to mitigate part of the impact of the increased tariffs imposed by both parties (requesting tariff exclusions and other mitigations from both governments), the risk of additional tariffs and other types of restrictions persists.
Tariff exclusions granted to Medtronic by the United States government require annual renewal and the policies for granting exclusions may change.
According to the company, the United States and China could impose other types of restrictions, such as limitations on government procurement or restrictions on the export of technology, which could affect Medtronic’s access to markets.
China comprises about 7% of its total revenue.
More generally, several governments, including that of the United States, have raised the possibility of policies to induce «reorientation» of supply chains, less dependence on imported supplies, and greater domestic production.
An example would be the stricter requirements of «Buy America» in the United States or the withdrawal of the United States from the WTO Government Procurement Agreement.
