By Jasper Ward
WASHINGTON, June 18 (Reuters) – The U.S. has launched a trade investigation into a German plan to lower its spending on pharmaceutical products, to see whether it is unreasonable or discriminatory, U.S. Trade Representative Jamieson Greer said on Thursday.
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The probe comes under Section 301 of the Trade Act of 1974, Greer said, adding that his office will open a docket for submission of written comments on June 25 and its Section 301 Committee will hold a public hearing on the probe in September.
“I am particularly concerned with news that Germany is fast-tracking legislation that would further reduce its spending on innovative pharmaceuticals,” Greer said.
The German Embassy in Washington did not immediately respond to a request for comment.
The investigation, the sort of which Washington has already launched into dozens of other countries, comes after the German Ministry of Health unveiled plans in April for a wide-ranging overhaul of the country’s statutory healthcare system to reduce a looming funding gap by 20 billion euros ($23 billion).
The plan, which would have introduced variable discounts on pharmaceuticals, is being replaced after the pharmaceutical industry expressed opposition to it, a German government source told Reuters on Monday.
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Since returning to power last year, U.S. President Donald Trump has carried out an aggressive trade agenda, which has resulted in the imposition of a 10% global tariff and threats of 100% tariffs on imports from countries like China and France.
Earlier this month, the Trump administration proposed tariffs of up to 12.5% on imports from 60 countries after determining they had failed to curb trade in goods made with forced labor following a Section 301 investigation.
The conclusion of the investigation could result in the U.S. taking tariff-related action on German imports.
(Reporting by Jasper Ward in Washington; additional reporting by Kanishka Singh; editing by Scott Malone)
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