A new trade probe is reigniting a long-running clash over who should pay for medical innovation. Washington argues Germans benefit from lower prices while US patients shoulder a disproportionate share of the costs.
I have analysed in detail the decision of the US Trade Representation (UST) to open an investigation into the German regulation of drug prices. The inquiry, covered by Section 301 of the Trade Act 1974, questions that artificially low prices in the German pharmaceutical market constitute a covert subsidy that harms US laboratories. If Washington confirms its thesis, tariffs could be imposed on exports of the sector as of September, when the proc…