COVID vaccine dispute

In anticipation that a successful vaccine against COVID-19 would be developed, various countries pre-ordered doses of vaccine from the organisations doing research. The United Kingdom pre-ordered 100 million doses of the Oxford–AstraZeneca COVID-19 vaccine in June 2020.[6] In the past, the European Union had left member states to decide on their own health policies, but during the summer of 2020, Brussels took charge of vaccine procurement in what Ursula von der Leyen called a "European Health Union". Member states could opt out of this, but none did.[7] Negotiating on behalf of the whole EU, the European Commission signed a deal with AstraZeneca at the end of August 2020.[6]

When the Oxford–AstraZeneca vaccine was approved for use in the United Kingdom on 30 December 2020, vaccinations began to be rolled out. It was the second vaccine to enter the national rollout programme,[8] joining the Pfizer–BioNTech vaccine which had been approved on 2 December 2020.[9] The European Medicines Agency did not approve the use of the Oxford–AstraZeneca vaccine until 29 January 2021.[1] Hours earlier, French president Emmanuel Macron had stated that the vaccine was "quasi-ineffective for people over 65", but the EMA recommended its use for anyone from age 18.[10] By the end of January, two per cent of the population of the European Union had received the first of the required two vaccines shots compared with around ten per cent in the United Kingdom.[1]

In the third week of January 2021, AstraZeneca announced that problems at the Belgian plant where it produced the vaccine would reduce the supply available to the European Union from the 80 million doses expected by the end of March, to 31 million doses. This news came at a time when Pfizer had also reduced the output of its vaccine to allow for an upgrade of its facilities. This left the European Union with a shortfall on its requirements.[1] On 25 January, Stella Kyriakides, Europe's health commissioner, stated that discussions were taking place with AstraZeneca, but that the company had not given satisfactory answers as to which doses had been manufactured and to whom they had been delivered. She stated that the EU wanted its contract to be fulfilled.[11] The company responded by stating that its contract with the United Kingdom gave that nation the first claim to vaccines produced domestically, whereas its contract with the European Union only required it to make its "best efforts" to deliver the doses on time.[1] The contract was subsequently published, shedding light on the matter (see below).

The Brexit deal guarantees free movement of goods on the border between Northern Ireland and the Republic of Ireland. On 29 January, the European Commission published its export transparency mechanism to gain oversight of the movement of vaccines. This included reference to the possible use of Article 16 of the Northern Ireland Protocol in introducing export controls, to prevent supplies of vaccine aimed at the Republic of Ireland moving to the British mainland via Northern Ireland. Article 16 allows limited unilateral deviation from the Protocol, subject to various criteria being met. This move was criticised in Northern Ireland, the Republic of Ireland and the UK, with the first minister of Northern Ireland, Arlene Foster, stating it was "an absolutely incredible act of hostility".[3] The EU reversed the decision the following day acknowledging that a mistake had been made.[3] However, it is introducing export controls on coronavirus vaccines made inside the bloc. They will have to be approved by national governments, unless they are destined for the Covax mechanism to supply the poorest countries or for a number of European states not in the EU. The World Health Organization criticised this move as likely to prolong the pandemic and slow economic recovery around the world.[12] The European Union's chief Brexit negotiator, Michel Barnier, asked the Commission to step back from the deepening row.[13]

Later on 29 January, the UK was left off a list of 120 countries to which vaccines could be exported freely. Instead, manufacturers in the EU must notify national authorities before exporting vaccines to the UK. The authorities have the right to refuse to allow the export if they consider that doing so would jeopardise the supply of vaccines to the EU. The new measures meant that vaccines from AstraZeneca plants in the EU might be prevented from being exported to the UK. Additionally Pfizer, which also makes vaccines in the EU, might be prohibited from exporting vaccines to fulfil their contract with the UK.[14]

Also on 29 January, the European Commission released a redacted version of the bloc's contract with AstraZeneca. The redacted portions included those covering prices, delivery dates and intellectual property rights.[15] The Commission claimed the contract made it "crystal clear" that AstraZeneca had to supply vaccine produced in the UK to make up for the production shortfall at its EU plants but the firm disputed this, citing the best efforts clause. Article 5.4 of the contract stated that Astra-Zeneca should use "best reasonable efforts" to manufacture the vaccine for the EU at sites in the EU and the UK, but that other sites could also be used to accelerate supply to the EU. The contract included agreed delivery amounts and dates. It also included a statement in Article 13.1.e that Astra-Zeneca was not under any obligation to another party, contractual or otherwise, that would impede its complete fulfillment of its obligations under the contract with the EU.[16] Any legal proceedings would take place in Belgian courts.[17]

On 31 January 2021, Ursula von der Leyen announced by Twitter that a "step forward" had been made in negotiations between AstraZeneca and the EU. The company committed to delivering a further 9 million doses of vaccine by March 2021, and would be expanding manufacturing capacity in Europe. They also stated that deliveries would start being made around a week earlier than previously promised.[18][19] Meanwhile the European Union had been having other vaccine procurement problems; a 25% shortfall it the number of jabs, from the US biotech firm Moderna, and major shortfalls in the distribution of the Pfizer–BioNTech vaccine.[7]