Donald Trump promised to bring back all possible manufacturing in the United States to end finally the country’s reliance on foreign goods. President made this announcement on Tuesday, during the briefing at the White House, the official website reports.
As President Trump said, the pandemic showed the importance of bringing manufacturing back to America. In other words, it is time for the US to rely on the local, not foreign-made products, especially when it is about the vital things people need to protect the public’s health.
In its efforts to boost the American economy, the Trump Administration is signing a Letter of Interest in support of a deal that will help ensure essential medicines are produced in America. Now, the US’ reliance on foreign countries for critical, generic drugs is not sustainable and leaves the Americans incredibly vulnerable.
When the agreement is final, the CEO of the U.S. International Development Finance Corporation (DFC) will use his delegated Defense Production Act (DPA) loan authority to provide a $765 million loan to launch Kodak Pharmaceuticals, which will create at least 360 jobs.
The solid loan will allow the company build the capacity to produce essential medicines that have lapsed into a chronic national shortage. For instance, Kodak will have the capacity to produce 25% of the generic active pharmaceutical ingredients necessary for all non-biologic and non-antibacterial pharmaceuticals used in the US. Thus, once fully operational,
Kodak will work with the Administration and drug product manufacturers to identify the products that are most needed to meet national security requirements.
Another important aspect is investing in critical industry, Trump said. The CEO of the DFC—formerly the Overseas Private Investment Corporation—is now using DPA loan authority delegated by the President to invest in America in addition to its work overseas. Only a small proportion of generic active pharmaceutical ingredients are actually manufactured in the US, and the majority come from India and China.
Trump is going to support private sector significantly
In his efforts to boost the economy and health sector, President Trump also committed to ending America’s unhealthy reliance on foreign countries for vital drugs.
Under Trump era, his office has also partnered with the private sector to speed vaccine and therapeutic research, while preparing for the mass production of a safe, effective vaccine.
Trump has leveraged the power of the private sector to fight COVID-19 and provide Americans with the resources they need. In 2020, the presidential administration has taken 33 DPA actions totalling about $3.2 billion to provide critical support for essential medical resources and country’s defence industrial base.
The President has used the DPA to contract with companies like General Electric, Honeywell, Puritan, and 3M to ramp up production of ventilators, swabs, and masks.