What is Parallel Trade?Parallel trade has emerged as a widely used commercial approach across many industries such as food, automotive, and textiles, largely as a result of globalization. In this article, we will focus on how parallel trade operates within the pharmaceutical and healthcare sectors, along with its legal framework.In countries with varying economic conditions, identical products can often be found at significantly lower prices. Parallel trade sometimes referred to as parallel distribution can be described as the practice of sourcing medicines from countries where they are sold more cheaply, and then supplying them to other markets beyond the manufacturer’s original distribution channels. Since this practice runs alongside the official distribution network, it is called parallel trade.To qualify for parallel trade, products must be authentic and original. Furthermore, the exporting company must have a distributor in the target country, yet the process must be managed independently by a separate party outside the existing distributor. This condition helps foster competitive pricing within the pharmaceutical market.According to the European Commission, the European Economic Area (EEA), and the European Union, this activity is officially defined as parallel imports: the import of a medical product from one member state to another, followed by its distribution outside the manufacturer’s or authorized distributor’s supply chain. Similarly, the European Medicines Agency (EMA) highlights its responsibility for scientific evaluation, inspection, and monitoring of medicines in the EU, framing parallel trade as a practice aligned with the principle of free movement of goods within the EEA.By enabling medicines, healthcare, and personal care products to circulate globally through alternative supply routes, parallel trade broadens access. Since medicine pricing is usually determined by national governments in line with local market conditions, parallel trade has been recognized by the European Commission as a legitimate and lawful practice within the EU’s internal market.tion helps foster competitive pricing within the pharmaceutical market.In our upcoming article, we will present an objective evaluation of the current state of parallel trade in the EU pharmaceutical industry.
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