The United States has launched an investigation into Germany's pharmaceutical policies over what it called “persistent underpayment” for drugs, as the European country seeks to limit rising health care costs, including spending on drugs.
“President Trump has made clear that American patients should not bear a disproportionate share of global pharmaceutical research and development,” U.S. Trade Representative Jamieson Greer said in a statement Thursday evening.
“I am particularly concerned by the news that Germany is fast-tracking legislation that would further reduce its spending on innovative pharmaceuticals,” he said, calling it “a serious step backwards.”
In April, Germany proposed reforming its health insurance system to reduce pressure on public finances as health spending has increased substantially in recent years.
He introduced a series of cost-saving measures, including deeper discounts for the pharmaceutical industry's insurance funds, prompting numerous drug company executives to warn that they could withdraw or delay new drugs in the country.
The bill is currently in the parliamentary process.
The US investigation was launched under Section 301 of the Trade Act, which allows unilateral actions against countries with unfair practices that tax US trade.
Greer said America's trading partners must pay their fair share to fund research into new drugs, and that the research comes after months of discussions with German partners.
Last year, the Trump administration introduced the so-called most favored nation, or MFN, drug policy, which ties drug prices in the United States to lower ones abroad.
The German Health Ministry did not immediately respond to a request for comment.
