The Center for American Principles submitted a public comment to the Office of the United States Trade Representative (USTR) supporting its Section 301 investigation into Germany’s compulsory pharmaceutical pricing policies and their burden on U.S. commerce.
In the comment, CAP argues that Germany’s reliance on statutory rebates and government-imposed price controls shifts a disproportionate share of the costs of pharmaceutical research and development onto the United States. Rather than allowing prices to emerge through genuine market negotiations, Germany gives the government broad authority to dictate discounts and rebates manufacturers must provide.
CAP notes that Americans pay approximately 3.9 times more than German prices for brand-name medicines, despite Germany being Europe’s largest economy and one of the world’s wealthiest countries. These policies reduce the value of American biomedical innovation and weaken the economic incentives necessary to finance the costly and uncertain research behind future breakthrough medicines.
CAP urges USTR to continue engaging with Germany to secure concrete, measurable reforms that promote a more reciprocal and market-oriented approach to pharmaceutical pricing. If Germany declines to enact meaningful reforms, CAP argues that USTR should be prepared to pursue proportionate remedies authorized under U.S. trade law.