What evidence did the USTR cite about Germany’s pricing practices?

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USTR Cites Evidence of Unfair Pharmaceutical Pricing by Germany

The United States Trade Representative's (USTR) office has initiated an investigation into Germany's pharmaceutical pricing policies, citing evidence that these practices are unfair and potentially burden US commerce. The probe, launched under Section 301 of the Trade Act of 1974, aims to determine if Germany's "persistent underpayment for innovative pharmaceutical products" is unreasonable or discriminatory. This action could potentially lead to the imposition of new tariffs on German goods.
Allegations of Unfair Pricing and Reduced R&D Investment

A federal register notice released by the USTR asserts that evidence indicates Germany implements unfair pricing policies and practices concerning innovative pharmaceutical products. The notice further suggests that the reduced revenue resulting from these practices appears to contribute to a decrease in investment for research and development. This situation, according to the USTR, leads to the United States bearing a disproportionate share of the global R&D costs for innovative pharmaceuticals.
Examination of Implementation Mechanisms

The investigation will thoroughly examine the specific methods and mechanisms that Germany employs to implement its pharmaceutical pricing policies and practices. This includes scrutinizing how these policies are enforced and their direct impact on the market and international trade. The goal is to understand the full scope of Germany's approach to pharmaceutical pricing.
Concerns Over Further Reductions in Spending

USTR Jamieson Greer specifically voiced concerns regarding Germany's legislative plans to expedite measures that would further decrease its spending on innovative pharmaceuticals. This potential legislative action is seen as exacerbating the existing issues related to pricing and R&D investment. The USTR's office will be accepting public comments and plans to hold a hearing in September as part of the ongoing investigation.

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What evidence did the USTR cite about Germany’s pricing practices?

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