A group of 48 members of Congress, led by Florida Congressman Vern Buchanan, sent a letter to U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, urging the administration to launch an investigation into international pharmaceutical pricing policies.

Section 301 Investigation

The lawmakers are asking for a Section 301 investigation, a trade enforcement tool that would target foreign countries that lawmakers argue use strict price controls to avoid paying their fair share of global drug research and development costs.

According to data cited in the letter, more than 70 percent of patented pharmaceutical profits across Organization for Economic Co-operation and Development (OECD) nations come from sales within the United States, even though the U.S. makes up only one-third of the OECD’s total gross domestic product.

The congressional group pointed to a recent U.S.-UK agreement where the United Kingdom agreed to double its spending on innovative medications as a successful model for future trade talks. However, they expressed concern that other wealthy nations—specifically Germany, Switzerland, Japan, France, and Canada—have not adjusted their market policies.

The letter notes that Germany and Switzerland recently announced plans to further reduce their domestic pharmaceutical spending, which the lawmakers argue shifts the financial burden of medical innovation onto American consumers.

Previous Efforts

This is not the first time these lawmakers have raised the issue. Last year, Buchanan and Representative Jodey Arrington led a similar letter signed by 33 colleagues. Earlier in the current congressional session, they also introduced the USTRx Act (H.R. 4780). If passed, that legislation would create a permanent Chief Pharmaceutical Trade Negotiator position within the Office of the U.S. Trade Representative to track foreign price-setting practices and recommend trade remedies.

Original reporting: Tampa Free Press — read the source article.