Core Viewpoint - The EU and US tariff exemption for generic drugs is expected to significantly promote the development of the generic drug industry, particularly benefiting Ireland's pharmaceutical sector [2] Group 1: Impact on Generic Drug Industry - The original agreement clarifies that the maximum tariff on brand-name drugs imported from Europe to the US will be 15%, while generic drugs will be exempt from tariffs [2] - Generic drugs have become a crucial part of Ireland's pharmaceutical industry, with major manufacturers like Teva and Sandoz having a strong presence in the country [2] - The FDA estimates that generic drugs account for 91% of total drug sales in the US, highlighting their dominance in the market [2] Group 2: Economic Implications for Ireland - The tariff exemption for generic drugs, contrasted with the 15% tariff on brand-name drugs, will have a significant impact on Irish pharmaceutical manufacturers [2] - The EU-US agreement is likely to accelerate the trend of brand-name pharmaceutical companies, such as Johnson & Johnson and Pfizer, establishing facilities to produce generics after patent expirations [2] - The exemption will assist the Health Service Executive (HSE) in reducing drug expenditure, which was approximately €2.6 billion last year, making it the largest spending item in the healthcare budget [2]