Beyond The Horizon

ICYMI: Securing The Supply Line In A Post Covid Era

If we have learned anything during the pandemic, it's that the supply chain is at risk whenever there is a disaster. It's especially at risk when a geopolitical foe is in control of life saving products such as medicine. That is the situation the West finds itself in with China and now, central and south America are looking to step into the gap.

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to contact me:

bobbycapucci@protonmail.com

source:

https://www.msn.com/en-us/money/markets/us-drug-supply-chain-alternative-to-china-might-run-through-canada-latin-america/ar-AAYtEl1?ocid=msedgntp&cvid=29cf24f4ce154433985803dcabfb0657

Duration:: 26m
Broadcast on:: 08 Jul 2024
Audio Format:: mp3

An official message from Medicare. A new law is helping me save more money on prescription drug costs. Maybe you can save, too. With Medicare's Extra Help Program, my premium is zero, and my out-of-pocket costs are low. Who should apply? Single people making less than $23,000 a year, or married couples who make less than $31,000 a year. Even if you don't think you qualify, it pays to find out. Go to ssa.gov/extrahelp. Paid for by the US Department of Health and Human Services. This summer, saddle up with the only sports book where you can bet on horse racing. FanDuel. Right now, new customers can get a no-swept first bet up to $500. Just download the app or go to fanduel.com/horses to score your no-swept bet up to $500. 21+ in present in Colorado. Offer valid on first real money wager of $5 or more. Verified FD Racing account required. Bonus issued in non-withdrawable racing site credit that expires seven days after issuance. Max refund $500. Restrictions apply. See terms at racing.fanduel.com. Gambling problem? Call 1-800-Gambler. Back to the program. I've talked a whole lot about the supply chain here on the podcast and one of the biggest issues has to do with our drug supply. And I don't mean recreational drugs. I'm talking about prescriptions. We rely a lot on China for our prescription drugs and with the way the supply chain has broken down and the way things have been impacted. I've said a million times that it's time to bring these companies, these factories back into the western hemisphere. And a good way to do that is to bring them to Mexico, Latin America. Let's strengthen our ties with our neighbors. We have spent a lot of time, meaning America, in South America, stir in the pot. Involving ourselves in regime change and all kinds of other nonsense. It's time to rebuild some bridges. Let's help these people get back to work and we're helping ourselves as well. We have more of a control over the supply chain if it's in our hemisphere than if it's in China. China is all right now in more lockdowns for COVID. So if we keep relying on China for all of our needs, we're going to be reliant and dependent on whatever their crazy as government decides to do. And I'm not very comfortable with that. In fact, I've seen this recently affecting people I know and care about. My girlfriend has to get medication every single month. And just recently, we went through a whole entire ordeal where the pharmacy where she usually gets her medicine, a major chain here in the country or the world, I guess you would say, CVS, didn't have the medication. And they were just like, oh, you're shit out of luck. Sorry, I don't know what to tell you. So we had to jump through hoops and change pharmacies, find a different place. And there was a bit of a pause in her taking medicine that she needs. And there are millions of Americans out there like that. They need cancer drugs, heart medication, you name it. And if there is a bump in the supply chain, where are they supposed to get those drugs from? And that's why I thought it would be a good idea, especially right now, while things are so chaotic to bring these developments, these different factories and companies back here to our hemisphere. And let's get things moving in the right direction. That doesn't mean we can't do any business with the companies in China. It just means we have a backup option. And from where I'm sitting, the more options to get these life-saving drugs, the better. We're not talking about, you know, PlayStation 5 is not showing up or computer chips for your car. We're talking about your mom's medicine. And for me, that's where the buck stops, right? When we're talking about medicine to keep people alive, we need to make sure that those medicines are available and that they're price-efficient. We have an article today from the South China Morning Post and the headline, "U.S. Drug Supply Chain Alternative to China Might Run Through Canada and Latin America." And the Biden administration is working on this right now, and I'll give them kudos for that. I think this is a good move for them. In fact, one of the better moves I've seen them make in some time, because you're doing yourself a huge favor here. The better people are living in the Western Hemisphere, the better off America is going to be. I want the whole entire continent of North America, South America, Central. I want everyone to be prosperous. I want everyone to make good money because then that starts to fight the corruption. And I truly believe that the power of South America, Central America, and Mexico is untapped yet. And the potential for South America, Central America, and Mexico to become industrial powerhouses is there. And I think this would be a great step. Let's move these factories back to America, South America, Central America. Let's get the rust belt back up. Let's get cracking. Instead of all the BS, all the nonsense, why don't we invest in building our country better infrastructure? This article was authored by Robert Delaney. Representatives of Canada and three Latin American nations said on Tuesday that they welcomed U.S. efforts to reduce its dependence on China for pharmaceuticals by building supply chain alternatives with them. Canadian authorities are working with U.S. counterparts on regulatory cooperation and flexibility, which is going to limit undue regulatory barriers and pharmaceutical trade. John Layton, Trade Counselor at Ottawa's U.S. Embassy, set out a virtual panel discussion held by the Center for Strategic and International Studies. And I say let's get to it. Let's cut the regulatory tape and let's get moving. That doesn't mean we have to completely abandon making medicine in China, right, or getting medicine from China. We can continue to buy some, but the idea, just like when you have assets to diversify, you don't want to leave all your eggs in one basket because if something happens, that's out of your control, then what? What are you going to do? And I don't want to be in a position like that. It was very uncomfortable recently trying to track down this prescription, and I know a lot of other people are dealing with that. And if we have the means and the ability to produce this stuff closer to home, I think that that just benefits everybody. Carlos de Costa of Brazil's Washington Embassy noted that Brasilia had set up special economic zones to encourage investment in pharmaceutical plants, among others, without any kind of economic complexity, without any kind of taxes to supply the whole world. Look, China needs to be competed against. They've cornered the market because they have such cheap labor there, and the rules are so easy to bend that it's hard to compete. But I think people are willing to pay a little more, not crazy amounts more, but a little more to know that they have the safety of the supply chain when things go south. And I've talked to other people who haven't been able to get medication, and I know some people that have had to drive out of the city and go to places like Loughlin, even some have to go out to St. George in Utah. So you tell me how that's a good experience or a good situation for somebody who's already sick to be in. It is not. de Costa, the head of the embassy's economic division, said the U.S. President Joe Biden's recent proposed economic partnership with Latin America, could further bolster such trade. And I am on board with this. President Biden's making a great move here, folks. This is a good idea. How long have I said that we should be pulling back from places like the Middle East and focusing on our neighbors, helping out down in South America, helping out in Central America, more in Mexico, wherever we're wanted. Obviously don't force ourselves meaning America onto anyone, but be there with a reassuring hand and saying, look, we're here with unconditional support. We want to help because guess what? Can you imagine the powerhouse we could all be? What if, say, in a perfect world, I know it's not a perfect world, folks, but bear with me for a minute. Imagine if we had a way that we could travel from Canada all the way down to the tip of South America and not worried about being robbed and the rest of it, kidnapped, killed. And imagine if it was the other way around, if people from South America, Central America could come to America and it wasn't this whole big migrant crisis and all of that, and that could be achieved if we give some financial stability to the region. But yet we don't ever do that. And then we can play, oh, there's this big migrant crisis. Like the people who live in South America, Central America and Mexico, aren't people who just want some safety. So if we help promote a financial situation that is beneficial to the people throughout the region, then perhaps we can get to a place where everything's gravy. And imagine the powerhouse that we could be. Just think about America already on its own. Imagine with everybody in South America on board and everybody looking towards the future. I was impressed by how President Biden at the summit of the Americas has stressed the importance of our working together for joint prosperity and for resilience in the supply chain, he said. Largely aimed at countering China's growing influence in Latin America, Biden's America, America's partnership for economic prosperity is to initially focus on like-minded partners that already have trade accords with the US. It also stops short of offering tariff relief and other terms that the administration intends to firm up over time. Now that's another thing that could be worked on. Tariffs, favorable trade agreements. That's how you bring people into the fold. If you don't want these countries in South America to fall under the influence of China or Russia, then you have to offer them favorable economic trade deals. It's not very difficult, but we refuse to do that. And we still have a problem with places like Venezuela and Cuba. Hey, look, I understand if people aren't treating their their citizens, right, we should say something. But at the same time, are we really doing ourselves any favors by cutting out off all diplomatic ties with them? I don't think we are. Now, don't get it twisted. I don't find Maduro in Venezuela to be a great guy. But Daytona is supposed to happen with your enemies, not with your friends, right? How are you? You don't need to have political negotiations with your friends for the most part. They need to happen with people you consider your enemy or somebody that is against you. And you come to the table and you try and negotiate something that's equitable to both sides. But if we don't even bother talking to people, how are we going to do that? Much like Biden's Indo-Pacific economic framework, another initiative that aims to counter China's economic integration with an entire region, the plan emphasizes better coordination on environmental goals and labor standards, instead of trade agreements that clear the way for better market access. Look, I'm on board with all of it, right? But the trade the trade deals, I think, are the biggest draw to get people into the fold. I think that if you're offering favorable economic conditions, then you're going to have more people that are falling all over themselves to get in line. Because let's face it, America swings a big purse. And a lot of times a lot of change comes falling out, doesn't it? For instance, El Salvador, their GDP is like $29 billion. America ponied up what $44 billion and just gave it to Ukraine for weapons of war. And then they said they didn't have any, they need more more ammunition, but that was $40 billion is only four days worth of ammunition. And then flip it El Salvador and look, $29 billion for their whole GDP. So you see my point here, right? The money is stretched thin. And when America comes a knock in and we're offering all kinds of financial benefits and different routes to financial success, these countries are going to be on board. But the problem is we have to do it with no strings attached. We can't be going in there and acting like we run the place like we've done for all of these years. We got to respect people's sovereignty. The new partnership's lack of market access elements is not as detrimental, though, since the US already has free trade agreements with 11 countries in the Americas. Cesar Remis, head of Mexico's USMCA implementation office also praised the initiative despite his president's absence from the summit last week, where Biden announced it. Biden's decision to leave Cuba, Venezuela and Nicaragua off the guest list prompted Mexican president Amlo to pull out. And that definitely was a snub to Biden. And I don't think that we should have left those countries out. Again, I understand that we don't agree with the way they conduct themselves, but that's fine. We have to understand that not everybody's going to dance to our tune. And I don't think that icing people out in our hemisphere is a good idea, because what you're going to do is push them into the arms of China and Russia. And that's going to cause an even bigger problem later on down the road. There is potential to focus production and consumption of APIs, he said, referring to active pharmaceutical ingredients. And this is reflected in the interest of multinational companies like AstraZeneca, which began producing COVID-19 vaccines in Mexico last year. Look, the potential of Mexico as far as an economic powerhouse is incredible. We've talked about this when we're talking about the war on drugs down there and the cartel situation. They have like the 15th largest economy in the world. And if they could figure out a way to get rid of the corruption, oh boy, forget about it. U.S. optimism to short supply chains from Asia overblown. Maria Rochia Vargas Karaskia, senior investment representative at pro-Columbia USA, her country's trade promotion authority also touted free trade zones in Columbia's efforts to lure investments to its healthcare and pharmaceutical industries. It will be really, really important to see how the economic partnership with Latin America that President Biden announced last week can really turn into concrete actions, Karaskia said. And I hope it does. Look, this is a big deal for me. I think this is a good move and something to be lauded. And I think this could be a big win for the Biden administration if they go about it the correct way and hammer it home and get it locked in. Shortages of personal protective equipment and other healthcare items in the U.S. when the coronavirus pandemic hit in 2020, federal Washington rancor towards Beijing that had already made the relationship contentious during the administration of former president Donald Trump. After a review of American supply chain vulnerabilities, the Biden administration reported in June 2021 that more than half the manufacturing facilities for dispensary ready medications registered with the Food and Drug Administration were outside the U.S. Nearly three quarters of all registered facilities producing APIs were in foreign jurisdictions that said primarily China and India. Now look, I have no problem being trade partners with either of those countries. And I think it's a good idea to trade with everybody. But I don't want to rely on India or China when it comes to medicine that's going to save my life or your life. So I think it is a huge deal and very important that they get on board here and make this happen. Let's fix these supply chains. How long before we have another disaster incoming folks? Do we all want to go through the whole rigmarole we went through the last time or do we want to have a plan in place and be prepared to deal with it? Of all FDA registered generic drug facilities making dispensary ready medications? 63% were outside the U.S. and 87% of FDA registered facilities making APIs used in generic products were overseas the report found. So the poor people again will get screwed, huh? If you can't buy the off brand medicine, then what? How about all the people with no insurance or not enough insurance? Are they supposed to pay through the teeth? So again, it's very, very, very important that we have this sussed out. This is a very, very crucial part of the country continuing to run and not finding itself in a medical disaster. And the full extent of the supply chain vulnerability remains unclear, the report said, so the reliance might even be higher. Willy Shai, a Harvard Business School professor, told the U.S. China Economic and Security Review Commission last week that America's drug supply chain was vulnerable to interruption because about 80% of all fine chemicals come from China. "We have a much broader dependence on China than I think most people realize, for a wide range of products including medicine," she said, which created a potentially catastrophic effect if supply chains were severed. Or what if China used that as a political tool, say they invaded Taiwan, and then they say, look, we don't want anyone in the West to get involved and if you do, we'll cut off the medical supply chain and you won't get your drugs. What then? So you see, it's also a national security issue. So if you want to frame it like that, that's fine. I really don't care how you frame it, as long as we address it. No immediate magic bullet. White House to discuss supply chain review. At another conference on Tuesday, this one about security issues, representative Brad Wenstrup, Republican of Ohio, said he had no idea how vulnerable the U.S. pharmaceutical supply chain was until COVID-19 hit me either. This is not even something I thought about. I figured this medicine was all made in America. But no, here, here I am. Wrong as hell about that too. If you told me when I served in Iraq as a surgeon that my protective equipment and pharmaceuticals relied on China, I would have told you, how did we get here? Wenstrup said at a center for new American security discussion. We probably never should have let our nation, especially our military, get in such a vulnerable position. But that's where we are, so let's respond to it. Well, I agree with that. We got to man up here and do the right thing. Even if there's some financial pain, then so be it. But we got to bring the supply chain for medicine home. We all have somewhere we're trying to get to. As the largest energy producer in Colorado, Chevron is helping meet rising demand, and we're working to do it responsibly. Our next-gen tankless facilities reduce the greenhouse gas emissions of our operations by more than 90% compared to our older designs, working to provide Colorado with energy that's affordable, reliable, and ever cleaner. So everyone can get to where they want to be. You've arrived. That's Energy in Progress. Visit chevron.com/tankless. An official message from Medicare. A new law is helping me save more money on prescription drug costs. Maybe you can save too. With Medicare's Extra Help Program, my premium is zero and my out-of-pocket costs are low. Who should apply? Single people making less than $23,000 a year or married couples who make less than $31,000 a year. Even if you don't think you qualify, it pays to find out. Go to ssa.gov/extrahelp. Paid for by the U.S. Department of Health and Human Services. Hello, Saver! Whether you're saving for that trip to the tropics or saving for an emergency, now is the time to take advantage of Wells Fargo's savings options. Wells Fargo offers savings accounts that can help you save towards your goals. So, what are you saving for? Visit a Wells Fargo branch or wellsfargo.com/save to open a savings account today. Wells Fargo Bank NA member FDIC. Wenstrup said that he had introduced legislation to create more incentives to encourage expanded medical manufacturing in the U.S. Additionally, he said U.S. companies needed to dig deep into their supply chains down to the level of active pharmaceutical ingredients to assess their vulnerability. Congressman Jim Hines, Democrat of Connecticut, agreed that the U.S. needed to cut vulnerability, but cautioned it was important not to go too far. There's a reason why supply chains extend all over the world, and that reason is that the way we get the lowest cost goods, right? He said, "It is a point in time where Americans are struggling with inflation. They should just be mindful of that fact." Oh, we are. Believe me, we are. Mr. Electronic Car Guy. It's up to you to make sure that the supply chain, when it comes to medicine, is not interrupted. If that means tax breaks, whatever it is, government stepping in to help the price, whatever it might be, that needs to happen. Because we can't be in a position where nobody can get these drugs. That's certainly not a place we want to be. Hines also called for a more careful separation between strategic priorities and areas where even adversaries both benefit and cooperate. Areas like drug development, areas of hybrid crops, there's an awful lot of smart people in China, he said, where we don't have a national security competition, we shouldn't wall off the progress of innovations that cure disease or make for better crop yields. What is he even talking about? So what, China is going to be mad if we produce drugs elsewhere? If that's the case, we'll eff them. We can't be worried about that. They have to understand, we're going to keep producing drugs in your country as well, but we have to have a backup plan. And if we get to a point where we don't need to work with China anymore, so much of the better, in my opinion. I have no desire to be beholden to China, to be beholden to Iran, or Russia, or any of these other countries. Back at the CSI talk, panelists were enthusiastic about US efforts to bring the medical supply chain closer, but not without caveats. DeCosta, for example, said the FDA should streamline the process by which it certifies Brazilian API producers. We already have an API industry here, he said. If we could make sure that we connect our industry to the pharmaceutical industry in the US, that would require faster regulatory procedures. So let's get on it. If everything's safe and on the up and up, let's do it. Let's get going. What are we waiting for? DeCosta also urged Biden to request renewal of its trade promotion authority, also called a fast track authority, which sends proposed trade agreements to Congress for an up or down vote with no amendments bypassing lawmakers who might try to block them. I like that too. Up and down votes, I am a big fan of that. Let's stop the bullshit. When it's an important vote to get through, save your pet project. You can add it later on to something else, save your pork. The administration has been reluctant to request this authority, which expired nearly a year ago, since it prefers to focus on trade standards as opposed to access. Well, I don't like that. We need to be way more active when it comes to this. This is a big problem. The drug supply chain cannot be busted. It can't be broke and it can't be impeded. And if that means that we have to continue to bring stuff back home, back to America, South America, Central America, to produce it here, then I say that's what we do. And there's different ways that we can talk about cost efficiency. And there's different ways we can make sure that the American public isn't taking it in the shorts any more than they have to. So I hope that we continue on this path, and I'm 100% on board with the Biden administration's move here. I think this is a solid move. And this is a move that shouldn't be politicized. So let's hope it's not. Let's hope they get a deal worked out. And let's hope we can secure the drug supply chain very soon. All right, folks, it's going to do it for this episode. If you'd like to contact me, you can do that at bobbykapoochie@protonmel.com. That's B-O-B-B-Y-C-A-P-U-C-C-I at protonmel.com. You can also find me on Twitter at B-O-B-B-Y_C-A-P-U-A-N-official message from Medicare. A new law is helping me save more money on prescription drug costs. Maybe you can save too. With Medicare's extra help program, my premium is zero and my out-of-pocket costs are low. Who should apply? Single people making less than $23,000 a year, or married couples who make less than $31,000 a year. Even if you don't think you qualify, it pays to find out. Go to ssa.gov/extrahelp. Paid for by the U.S. Department of Health and Human Services. This summer, saddle up with the only sports book where you can bet on horse racing, FanDuel. Right now, new customers can get a no sweat first bet up to $500. Just download the app or go to fanduel.com/horses to score your no sweat bet up to $500. 21+ in present in Colorado. Offer valid on first real money wager of $5 or more. Verify the FD Racing account required. Bonus issued in non-withdrawable racing site credit that expires seven days after issuance. Max refund $500. Restrictions apply. See terms at racing.fanduel.com. Gambling problem? Call 1-800-Gambler.