Findings; sense of Congress

(a) Findings Congress makes the following findings: (1) The COVID–19 pandemic created significant demand pressures on the global medical supply chain. (2) According to a December 2020 report by the United States International Trade Commission, global demand significantly exceeded available supply of many goods critical for the response to the COVID–19 pandemic (in this section referred to as COVID–19 critical goods). Health care providers in the United States faced difficulties in procuring such goods in sufficient quantities. Foreign export restrictions on finished drugs and active pharmaceutical ingredients may have contributed to stress on the supply of some critical COVID–19 treatment drugs (including anti-infective products), as well as hormone medications and vitamins. (3) According to the McKinsey Global Institute, during the 20 years preceding the date of the enactment of this Act, pharmaceutical supply chains have become more globally dispersed and many generic small-molecule products have shifted to lower-cost production locations, some of which have been identified as posing a threat to the national security of the United States. (4) According to the Organisation for Economic Co-operation and Development, while the United States is one of the largest exporters of COVID–19 critical goods, it is also one of the largest importers of those goods. (5) The World Trade Organization has found that, while the United States, Germany, and the People's Republic of China are all major producers and importers of COVID–19 critical goods, United States import partners are less diversified compared to Germany and the People's Republic of China. In the United States, more than half of its imports of COVID–19 critical goods came from only 3 partners—the People's Republic of China (30.6 percent), Mexico (15.3 percent), and Malaysia (9.0 percent). (6) While some of the countries in which medical supply manufacturing occurs are reliable suppliers and allies to the United States, others have adopted or maintained policies that make United States supply less secure. (b) Sense of Congress It is the sense of Congress that, given the threat to national security and public health that could arise if the United States is unable to swiftly respond to significant demand surges for medical products in a future pandemic, it is critical that the United States diversify its trade relationships and prioritize partners that adopt and maintain reliable supply chain policies.