US Scrambles to Secure COVID-19 Vaccines... Even Invokes Defense Production Act

[Asia Economy Reporter Naju-seok] The U.S. government has mobilized even wartime laws to monopolize the new coronavirus infection (COVID-19) vaccines. The U.S. has agreed to purchase an additional 200 million doses (enough for 100 million people) of vaccines from Pfizer by July next year and has also secured the right to obtain an additional 400 million doses.

[Image source=Reuters Yonhap News]

According to the U.S. Department of Defense on the 23rd (local time), the U.S. government signed an additional supply contract for a total of 100 million doses of COVID-19 vaccines, receiving 70 million doses by the end of June next year and 30 million doses by the end of July.

In addition, the U.S. has signed an option contract to receive 400 million more doses of vaccines separately from this contract.

The U.S. Department of Defense explained, "As part of ongoing cooperation, the U.S. government and Pfizer have strengthened their partnership to safely expand vaccine production capacity and increase output."

To secure this vaccine supply, the U.S. government even utilized the Defense Production Act (DPA), enacted during the Korean War. The contract was finalized by enabling the U.S. government to secure nine special products necessary for vaccine production.

The DPA grants the U.S. government the authority to require private sectors to produce strategic materials during wartime. The U.S. government decided to use this wartime law to secure the materials needed by Pfizer for production.

The U.S. government has already agreed to receive 100 million doses of vaccines from Pfizer by March next year. It has also agreed to receive 100 million doses from Moderna by the end of March and another 100 million doses by the end of June. Considering the two-dose regimen, this means that by July next year at the latest, the U.S. will have secured enough vaccine doses to inoculate 200 million people.

According to foreign media, regarding this vaccine purchase, the U.S. government agreed to pay Pfizer $1.95 billion (2.16 trillion KRW). Considering previously signed contracts, the total payment amount reaches $4 billion.

Alex Azar, Secretary of Health and Human Services, said, "By securing additional doses from Pfizer through the second quarter of next year, we will instill confidence that there will be enough vaccines for all Americans who wish to be vaccinated by the second quarter."

This content was produced with the assistance of AI translation services.