The United States (US) has launched a formal investigation into Germany under Section 301 of the Trade Act of 1974, assessing whether German policies on pharmaceutical pricing are unfairly affecting American trade interests.
The Office of the United States Trade Representative (USTR) announced on Thursday that it will assess whether Germany’s alleged persistent underpayment for innovative pharmaceutical products is “unreasonable or discriminatory” and whether it burdens or restricts US commerce, Xinhua reports from New York.
According to the USTR, the two countries have held discussions for several months in an effort to resolve the issue before the initiation of the probe, the office said in a press release on its website.
US Trade Representative Jamieson Greer said American patients should not bear a disproportionate share of global pharmaceutical research and development costs.
“President Trump has made clear that American patients should not be shouldering a disproportionate share of global pharmaceutical research and development,” Greer said in a statement. He also expressed concern over reports that Germany is advancing legislation that could further reduce spending on innovative medicines.
Greer added that the situation represents “a serious step backwards” and urged US trading partners to contribute a fair share toward funding pharmaceutical innovation.
He also referenced a recent agreement between the United States and Britain on pharmaceutical pricing, saying Germany should pursue similar constructive negotiations.
Section 301 of the Trade Act of 1974 authorises the US government to investigate and respond to foreign practices considered unfair and harmful to US commerce.
