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106TH CONGRESS

2D SESSION H. R. 4764

To require the United States Trade Representative to enter into negotiations

to eliminate price controls imposed by certain foreign countries on prescription drugs.

IN THE HOUSE OF REPRESENTATIVES

JUNE 27, 2000

Mr. EWING (for himself, Mr. MCCRERY, and Mr. THOMAS) introduced the

following bill; which was referred to the Committee on Ways and Means

A BILL

To require the United States Trade Representative to enter

into negotiations to eliminate price controls imposed by

certain foreign countries on prescription drugs.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. FINDINGS.

4 Congress makes the following findings:

5 (1) Americans should have access to the most

6 effective prescription medicines at affordable prices.

7 (2) The United States leads the world in the

8 development of new prescription medicines to help
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1 and heal patients in the United States and around

2 the world.

3 (3) Americans pay disproportionately more for

4 many prescription medicines than most of their for5 eign counterparts.

6 (4) The use of price controls by foreign govern7 ments limits Americans access to prescription medi8 cines that can save, prolong, and improve lives by re9 quiring American patients to cover a dispropor10 tionate cost of pharmaceutical research and develop11 ment.

12 (5) The use of foreign price controls on innova13 tive medicines disadvantages Americans, distorts

14 trade, and constitutes an unjustifiable, unreasonable,

15 and discriminatory practice that burdens or restricts

16 United States commerce within the meaning of sec17 tion 301 of the Trade Act of 1974.

18 SEC. 2. ACTIONS TO ELIMINATE INEQUITIES IN PHARMA19 CEUTICAL TRADE.

20 (a) NEGOTIATIONS.—The United States Trade Rep21 resentative, with the advice of and in consultation with

22 the Secretary of Health and Human Services, shall enter

23 into negotiations with the Governments of the other G–

24 8 countries in order to achieve the agreement of those

25 Governments to eliminate price controls on innovative
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1 medicines and the unfair trade practices that result from

2 the application of price controls.

3 (b) CONDITIONAL REQUIREMENT FOR ADDITIONAL

4 ACTIONS.—

5 (1) IN GENERAL.—If, within 12 months after

6 the date of enactment of this Act, negotiations under

7 subsection (a) have not achieved the objectives set

8 forth in that subsection, the United States Trade

9 Representative shall submit to Congress rec10 ommendations for the most effective measures (in11 cluding the effect of imposing measures under the

12 authority of section 301 of the Trade Act of 1974)

13 for eliminating the disparity between the price of

14 prescription drugs in the United States and the

15 price of prescription drugs in the other G–8 coun16 tries with the goal of reducing the price of prescrip17 tion drugs for United States consumers.

18 (2) MEASURES RECOMMENDED.—The measures

19 recommended under paragraph (1) shall be of a na20 ture and amount that fully reflect the economic

21 harm that is inflicted on patients and health care in

22 the United States, and the harm that is inflicted on

23 the United States economy when countries pay the

24 country specific marginal costs of prescription drugs
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1 and let the United States cover the research and de2 velopment costs of innovative prescription drugs.

3 (3) CONSULTATION WITH FEDERAL TRADE

4 COMMISSION.—In determining the measures to rec5 ommend under paragraph (1), the United States

6 Trade Representative shall consult with the Federal

7 Trade Commission and shall also seek the advice

8 of—

9 (A) the United States International Trade

10 Commission regarding the extent of the direct

11 and indirect harm to the United States econ12 omy;

13 (B) the Secretary of Health and Human

14 Services regarding the extent of the direct and

15 indirect harm caused to American patients and

16 health care;

17 (C) the relevant private sector advisory

18 committees established under section 135 of the

19 Trade Act of 1974 (19 U.S.C. 2155); and

20 (D) representatives of appropriate inter21 ested private sector and other nongovernmental

22 organizations.

23 (c) DEFINITION.—For purposes of this section, the

24 term ‘‘G–8 countries’’ means the group of 8 industrial

25 countries consisting of Canada, France, Germany, Great
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1 Britain, Italy, Japan, Russia, and the United States es2 tablished to facilitate economic cooperation.

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