Side view of the capsule in production line.
Photo: Getty Images/iStockphotoPuerto Rico’s finances are strained, and the U.S. is too dependent on China for pharmaceuticals. These distinct issues may seem unrelated, but they are very much intertwined.
Puerto Rico was once America’s medicine cabinet, and it could be again. During the second half of the 20th century, it developed from one of the poorest places in the hemisphere into a manufacturing powerhouse. Through efforts to industrialize the island, U.S. manufacturers and the labor movement found common cause. Congress and Puerto Rico implemented several tax breaks for American manufacturers. One of them, enacted in 1976 and codified in Section 936 of the Internal Revenue Code, freed manufacturers from taxes on profits made in Puerto Rico and other U.S. territories. Drug companies flocked to Puerto Rico, transforming it into a hub of pharmaceutical production.
But that was then. Concerned about “corporate welfare” favoritism toward Puerto Rico vis-à-vis the states, Congress phased out the tax break between 1996 and 2006. When combined with decades of fiscal imprudence, that decision spurred the worst recession in Puerto Rico’s history. Many companies left. Unemployment rates and poverty levels skyrocketed. Government spending increased, resulting in massive debts. Fifteen years later the bankrupt commonwealth is in the midst of the largest restructuring process in U.S. history. Hundreds of thousands of educated Puerto Ricans have left the island looking for opportunities that existed there not long ago.
All the while, U.S. drugmakers have grown increasingly dependent on China. It has been reported that approximately 80% of the active pharmaceutical ingredients come mainly from China. What was seen as an issue of “corporate welfare” has devolved into a humanitarian crisis for our fellow Americans in Puerto Rico and a national-security dilemma for the country.
What should be done? Breathe new life into the pharmaceutical industry in Puerto Rico. The specifics are for policy makers in Washington and San Juan, but encouraging pharmaceutical companies to return to the territory and work under the U.S. flag is a nonpartisan objective.
A resurgent pharmaceutical industry would provide a solid foundation for Puerto Rico’s growth. It has been three years since Puerto Rico declared bankruptcy under the auspices of federal legislation and nearly three since Hurricane Maria devastated the island. The recovery has been unsteady—with recent earthquakes adding to the toll. And Covid-19 has left Puerto Rico at a standstill, much like the rest of the country.
Restoring the island’s pharmaceutical production capacity will also ensure the U.S. drug supply is secure, not a bargaining chip in international affairs. Rare it is to have a policy that meets so many goals simultaneously, and attracts support from all sides. Bringing back the pharmaceutical industry in Puerto Rico may be a cure-all.
Judge Cabranes is a judge on the Second U.S. Circuit Court of Appeals.
Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
"bring" - Google News
May 21, 2020 at 06:28AM
https://ift.tt/3e5GAEu
Bring the Drug Industry Back to Puerto Rico - The Wall Street Journal
"bring" - Google News
https://ift.tt/38Bquje
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "Bring the Drug Industry Back to Puerto Rico - The Wall Street Journal"
Post a Comment