Europe’s tougher vaccine restrictions could block all exports

European Union vaccine shipments to the rest of the world could face severe disruptions, under tougher rules set to be unveiled on Wednesday.

The EU’s current export regime guarantees supplies to some 90 countries won’t be interrupted and also offers protection to companies like Pfizer Inc. and Moderna Inc. that have met their commitments in Europe. Under tougher restrictions being drafted in Brussels, both of those exemptions could be removed, a senior EU official said.

That could hit countries from the Gulf to Canada, as the EU is one of the world’s biggest coronavirus vaccine producers. The move marks a fresh escalation in the EU’s battle to secure supplies. The bloc’s executive arm could potentially block all exports to countries that do not reciprocate, with the U.K a prime target.

So far, European efforts have been focused on AstraZeneca Plc, which has failed to deliver more than half of the doses that it promised for the first quarter. The bloc has started negotiations with the U.K. over how to share Astra’s output from a new plant that is due to come on stream in the Netherlands in the next few weeks, with the EU insisting that it should get the lion’s share, according to two EU officials.

The EU is already threatening to block shipments of vaccines to the U.K. unless it can reach an agreement with the British.

There is mounting concern in the EU about another wave of spiraling infections and deaths from the pandemic that will force governments to impose yet more economic pain on their battered economies.

German Chancellor Angela Merkel ordered a complete lockdown for five days over Easter following negotiations with state leaders that ran deep into the night. France and Italy have also tightened restrictions on activity in a bid to get the virus under control.

The new controls are aimed at making it easier to stop shipments leaving the EU if manufacturers haven’t fulfilled their European commitments.

But the European Commission, the EU’s executive arm, will also be taking into consideration vaccination rates in each country which requests vaccines.

This “qualitative” consideration will apply for requests not just from manufacturers that fall short of obligations, such as AstraZeneca, and are intended to prevent future glitches. This means that export requests from companies such as Pfizer and Moderna may be on the hook for rejections, an official said, declining to be identified.

Principle of ‘Fairness’

The EU’s original vaccine export authorization mechanism, introduced in January, exempted about 90 countries, many of which were poorer nations.

Commission Vice President Maros Sefcovic told reporters in Brussels Tuesday that the emphasis is on “fairness” when it comes to distributing the critical shots.

“We would proceed with a comprehensive assessment of the overall situation, of the supply materials, of investment, but also how in reality these exports have been completed if you look at the figures over the last couple of months,” he said.

The talks have shown some progress, with the two sides already discussing what the scope of a compromise would look like, according to one official who asked not to be identified because the process is private. Some of the issues raised have been what the reciprocal relationship should look like; whether a vaccine-sharing arrangement should include final doses or ingredients; and if it should take into account initial investments in the development process.

“We expect the EU to stand by its commitments not to restrict exports where companies are fulfilling their contractual responsibilities,” Jamie Davies, Boris Johnson’s spokesman, told reporters on Tuesday. “It’s important we work collaboratively with our international counterparts. We believe in free trade.” Johnson himself is due to speak later on Tuesday.