NEW YORK, June 18 (Xinhua) -- The Office of the U.S. Trade Representative on Thursday launched an investigation against Germany under Section 301 of the Trade Act of 1974 to determine whether persistent underpayment for innovative pharmaceutical products by Germany is unreasonable or discriminatory and burdens or restricts U.S. commerce.
The United States and Germany have had meaningful discussions for months to resolve this issue before the investigation was launched, the office said in a press release on its website.
"President Trump has made clear that American patients should not be shouldering a disproportionate share of global pharmaceutical research and development," said U.S. Trade Representative Jamieson Greer in the release. "I am particularly concerned with news that Germany is fast-tracking legislation that would further reduce its spending on innovative pharmaceuticals."
"This is a serious step backwards at a time when our trading partners need to step up and start paying their fair share to fund innovative pharmaceutical research and development," Greer said.
On April 2, the United States and Britain announced an arrangement on pharmaceutical pricing that would help drive investment and innovation in both countries. "Germany should follow suit with constructive negotiations to address this imbalance," he said.
Section 301 of the Trade Act of 1974 is designed to address unfair foreign practices affecting U.S. commerce. ■