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"The only ones to benefit from parallel trading are the wholesalers and pharmacists," he said.
It calls the disruptions caused by parallel trading merely a "nuisance".
Hundreds have been refused entry to the territory on suspicion they might engage in parallel trading.
The new policy is unlikely, however, to have a dramatic impact on parallel trading.
One strategy is to reach into a competitor's territory for share listings, as NASDAQ is doing by offering parallel trading in shares of NYSE-listed companies.
At issue has been the hordes of mainland Chinese who visit Hong Kong to buy goods for black-market resale at home, a racket described locally as "parallel trading".
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Importation or parallel trade of drugs has been done safely within Europe for over 20 years.
Moreover, the militants ran a parallel trade by truck to supply themselves along many of the same routes, he said.
Lord Green of Hurstpierpoint, the trade minister, is taking a parallel trade delegation whose members will meet David Cameron in Saudi Arabia and the UAE.
Lord Green of Hurstpierpoint, the trade minister, is taking a parallel trade delegation whose members will meet the prime minister in Saudi and the UAE.
"In the statement of objections sent in 1999, we had a preliminary view that DaimlerChrysler had a general strategy to block parallel trades in its cars," he said.
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