II

106TH CONGRESS

2D SESSION S. 2466

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 SENATE OF THE UNITED STATES

APRIL 26, 2000

Mr. GORTON introduced the following bill; which was read twice and referred

to the Committee on Finance

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) The United States leads the world in the

6 discovery and development of new prescription medi7 cines to help and heal patients.

8 (2) The National Institutes of Health lead the

9 way in basic biomedical research conducted in-house
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1 and sponsored in academic institutions. Basic re2 search advances knowledge about human biology and

3 disease. The National Institutes of Health is funded

4 through appropriations of general revenues.

5 (3) The use of price controls by foreign govern6 ments on innovative medicines distorts trade, dis7 advantages Americans, and constitutes an unjustifi8 able, unreasonable, and discriminatory practice that

9 burdens or restricts United States commerce within

10 the meaning of section 301 of the Trade Act of

11 1974.

12 (4) Prescription medicines today are often an

13 effective therapy to help and heal patients and,

14 therefore, access to prescription medicines at afford15 able prices is important for Americans.

16 (5) The price controls maintained by foreign

17 governments on innovative medicines undermine the

18 value of intellectual property rights held by Amer19 ican research institutions and pioneer pharma20 ceutical manufacturers.

21 SEC. 2. ACTIONS TO ELIMINATE INEQUITIES IN PHARMA22 CEUTICAL TRADE.

23 (a) NEGOTIATIONS.—The United States Trade Rep24 resentative, with the advice of and in consultation with

25 the Secretary of Health and Human Services, shall enter
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1 into negotiations with the Governments of the other G–

2 8 countries in order to achieve the agreement of those

3 Governments to eliminate price controls on innovative

4 medicines and the unfair trade practices that result from

5 the application of price controls.

6 (b) CONDITIONAL REQUIREMENT FOR ADDITIONAL

7 ACTIONS.—

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

9 the date of enactment of this Act, negotiations under

10 subsection (a) have not achieved the objectives set

11 forth in that subsection, the United States Trade

12 Representative shall submit to Congress rec13 ommendations for the most effective measures (in14 cluding the effect of imposing measures under the

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

16 for eliminating the disparity between the price of

17 prescription drugs in the United States and the

18 price of prescription drugs in the other G–8 coun19 tries with the goal of reducing the price of prescrip20 tion drugs for United States consumers.

21 (2) MEASURES RECOMMENDED.—The measures

22 recommended under paragraph (1) shall be of a na23 ture and amount that fully reflect the economic

24 harm that is inflicted on patients and health care in

25 the United States, and the harm that is inflicted on
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1 the United States economy when countries pay the

2 country specific marginal costs of prescription drugs

3 and let the United States cover the research and de4 velopment costs of innovative prescription drugs.

5 (3) CONSULTATION WITH FEDERAL TRADE

6 COMMISSION.—In determining the measures to rec7 ommend under paragraph (1), the United States

8 Trade Representative shall consult with the Federal

9 Trade Commission and shall also seek the advice

10 of—

11 (A) the United States International Trade

12 Commission regarding the extent of the direct

13 and indirect harm to the United States econ14 omy;

15 (B) the Secretary of Health and Human

16 Services regarding the extent of the direct and

17 indirect harm caused to American patients and

18 health care;

19 (C) the relevant private sector advisory

20 committees established under section 135 of the

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

22 (D) representatives of appropriate inter23 ested private sector and other nongovernmental

24 organizations.
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1 (c) DEFINITION.—For purposes of this section, the

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

3 countries consisting of Canada, France, Germany, Great

4 Britain, Italy, Japan, Russia, and the United States es5 tablished to facilitate economic cooperation.

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