[Pharm-policy] Republicans seek end of G-8, Nafta country price controls on pharmacueticals

[James Love]

The following is a description of the provision in the Republican
Medicare bill that focuses on G-8 and NAFTA member country price
controls.  It is a section of the Republican's medicare bill, and a
response to the various USA bills that would authorize parallel imports
of pharmaceuticals.  In this Republican response, rather than authorize
imports of less expensive drugs from Canada or Europe, the bill would
seek to force G-8 and Nafta countries to abandon price controls, and let
the drug companies dictate prices.  This is from the "outline" given to
Congressional staffers.  We have not yet seen the actual text of the
bill, but will post it when we get it.   We just heard about this
today.  Apparently the bill has not been introduced yet, but will be the
subject of a hearing on Tuesday and perhaps a mark-up on Thursday.  

Jamie



Medicare Prescription Drug & Modernization Act

Title IV Establishing International Equity in the Financing of
Pharmaceutical Research and Development Costs

Presently, Americans, and seniors in particular, are shouldering a
disproportionate burden for the research and development costs of the
pharmaceutical industry.  This is because many countries
have enacted price controls and, in effect, only pay the marginal costs
of manufacturing the drugs.

Under the bill, the US Trade Representative in consultation with the
Secretary of Health and Human Services shall enter into negotiations
with G-8 countries and NAFTA signatories to eliminate price controls and
the unfair trade practices that result from the application of such
controls.  The purpose of the negotiations would be to ensure that other
countries pay their fair share of the pharmaceutical research.  If in a
year after enactment the negotiations have not achieved their intended
objections, the USTR could recommend to Congress the most effective
measures to eliminate the disparity including imposing measures under
Section 301 of the Trade Act of 1974.

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James Love, Director           | http://www.cptech.org
Consumer Project on Technology | mailto:love@cptech.org 
P.O. Box 19367                 | voice: 1.202.387.8030
Washington, DC 20036           | fax:   1.202.234.5176
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