During the Uruguay Round trade negotiations, the United States and several of its major trading partners agreed to eliminate tariffs on pharmaceutical products, certain derivatives, and certain chemical intermediates used in the production of pharmaceuticals. 1 This agreement is known as the Pharmaceutical Zero-for-Zero Initiative (Initiative or Pharmaceutical Agreement). Effective January 1, 1995, the Pharmaceutical Agreement eliminated tariffs in signatory countries on approximately 7,000 pharmaceutical products and chemical intermediates for all World Trade Organization members on a non-discriminatory basis. In the Uruguay Round Agreements Act (URAA), Congress authorized the President to grant duty-free treatment to new pharmaceutical products and chemical intermediates.
