AZ, EU Initiate Negotiations Over Vaccine Dispute

Published 12 Apr.2021 13:49(KST)

[Asia Economy Reporter Hyun-ui Cho] British pharmaceutical company AstraZeneca (AZ) has announced that it has started negotiations with the European Union (EU), with which it has been clashing over the supply of the COVID-19 vaccine.

Matthew Kent, AZ's Global Head of Communications, said in an email sent to major foreign media on the 11th (local time), "We responded to the EC (European Commission) within the required timeframe according to the dispute resolution framework," adding, "We had very cooperative discussions with the EC last week."

This statement came shortly after an Italian media outlet reported that AZ had not yet responded to a letter sent by the EC on the 19th of last month. The EC explained, "The report is true," and added, "The letter sent to AZ at that time was a 'notice of dispute resolution' and was the first step in dialogue to resolve issues between both parties."

The letter appears to have been sent according to the contract between the EU and AZ. According to the contract, if a dispute arises, one party must notify the other by letter, and both sides must meet within 20 days to attempt to resolve the conflict through good-faith negotiations.

The conflict between the two parties arose as the EU expressed dissatisfaction that AZ was not fulfilling the COVID-19 vaccine supply as per the contract. According to the EU, it was supposed to receive 120 million doses by the end of last month, but only 30 million doses actually arrived.

Some within the EU are increasing pressure on AZ. Cl?ment Beaune, France’s Secretary of State for European Affairs at the Ministry of Foreign Affairs, said on the same day, "They are not fulfilling their obligations," and mentioned the possibility of legal action.

An EC official told major foreign media, "At this stage, we are waiting for the necessary requirements," and added, "We are maintaining contact with AZ to ensure timely and sufficient supply of doses."