Due to medicine prices, the United States has opened a trade inquiry against Germany. Washington wants to investigate if novel medications are routinely underpaid on the German market, forcing US patients to bear a disproportionately large portion of research and development expenses, according to multiple media reports.
The US Trade Representative Jamieson Greer’s office made the announcement in a statement on Thursday. According to the Reuters news agency, Greer started the probe because he believed Germany was underpaying for cutting-edge medications. “I am particularly concerned by reports that Germany is fast-tracking legislation that would further reduce spending on innovative medicines,” Greer stated.
The United States may decide to implement trade restrictions, including punitive tariffs, based on the results. Greer noted that months of negotiations with the federal government had preceded the probe but had not yet resulted in a resolution.
Washington is especially skeptical of the proposed health reform by the federal government. Greer expressed worry that the proposed policies would further cut funding for cutting-edge medications, according to Reuters. The change, which involves higher savings payments from the pharmaceutical industry, aims to close a multibillion-euro imbalance in the statutory health insurance system.
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