(1) Pharmaceutical price controls in foreign 
markets distort global trade flows and competition 
by depressing the prices of innovative drugs and ex-
ploiting pharmaceutical innovations researched and 
developed in the United States. 
(2) By setting prices at levels that are not mar-
ket-based, such price controls undervalue the dis-
covery of new, innovative treatments, diminish op-
portunities and incentives for global innovation in 
new medicines, and threaten to restrict access to 
new treatments and cures for United States patients 
and consumers. 
(3) Recognizing these dynamics, it is critical 
that the United States use all available trade tools 
to address such free-riding, consistent with the nego-
tiating objectives set forth in the Bipartisan Con-
gressional Trade Priorities and Accountability Act of 
2015 (19 U.S.C. 4201 et seq.), to ensure that for-
eign government regulatory reimbursement regimes 
are transparent, provide procedural fairness, are 
non-discriminatory, and provide full market access 
to United States products. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
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(1) ensuring the security of innovative and af-
fordable healthcare is a top priority for Americans 
and for Congress; 
(2) foreign government policies that mandate 
artificially low drug prices in foreign markets under-
mine this priority by reducing global incentives to in-
vest in the development of new medicines; 
(3) such exploitative behavior unfairly shifts the 
cost of developing new treatments to the United 
States and unduly relies on America’s patients and 
taxpayers to finance global pharmaceutical innova-
tion; and 
(4) safeguarding access to life-saving treat-
ments for American patients requires combating 
such behavior so that foreign countries pay their fair 
share of the costs associated with the development of 
new drugs. 
SEC. 3. CHIEF PHARMACEUTICAL TRADE NEGOTIATOR. 
(a) ESTABLISHMENT.—Section 141(b) of the Trade 
Act of 1974 (19 U.S.C. 2171(b)), is amended as follows: 
(1) In paragraph (2)— 
(A) in the first sentence, by inserting ‘‘one 
Chief Pharmaceutical Trade Negotiator,’’ after 
‘‘one Chief Agricultural Negotiator,’’; and 
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(B) by inserting ‘‘the Chief Pharmaceutical 
Trade Negotiator,’’ after ‘‘the Chief Agricul-
tural Negotiator,’’ each place it appears. 
(2) By adding at the end the following new 
paragraph: 
‘‘(7) The principal functions of the Chief Phar-
maceutical Trade Negotiator shall be to conduct 
trade negotiations, enforce trade agreements relating 
to United States pharmaceutical products, and take 
appropriate action to address acts, policies, or prac-
tices of high-income countries that have a significant 
adverse impact on the ability of United States phar-
maceutical manufacturers to enjoy full market ac-
cess. The Chief Pharmaceutical Trade Negotiator 
shall be a vigorous advocate on behalf of United 
States manufacturers and consumers of pharma-
ceutical products and shall perform such other func-
tions as the United States Trade Representative 
may direct.’’. 
(b) ANNUAL REPORT.— 
(1) LIST
OF
HIGH-INCOME
COUNTRIES.—The 
United States Trade Representative shall compile 
and annually update a list of each foreign country 
that is defined as ‘‘high-income’’ by the official sta-
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tistics of the International Bank for Reconstruction 
and Development of the World Bank. 
(2) REPORT REQUIRED.—With respect to each 
country included on the most recent list required 
under paragraph (1), the United States Trade Rep-
resentative, acting through the Chief Pharmaceutical 
Trade Negotiator, (as established pursuant to the 
amendments made by subsection (a)) shall annually 
submit to the Committee on Ways and Means of the 
House of Representatives and the Committee on Fi-
nance of the Senate a report that— 
(A) describes in detail the results of a re-
view of the acts, policies, and practices of such 
country relating to the trade in pharmaceutical 
products in the previous fiscal year; 
(B) determines whether such acts, policies, 
or practices— 
(i) are not developed and implemented 
in a fair, nondiscriminatory, and trans-
parent manner; 
(ii) are not market-based or do not 
appropriately recognize the value of inno-
vative medicines; 
(iii) deny reciprocal market access for 
United States products; 
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(iv) diminish incentives for innovation 
in a manner that delays, prevents, or oth-
erwise adversely impacts the introduction 
of new medicines in the United States; 
(v) violate or are inconsistent with the 
provisions of, or otherwise deny benefits to 
the United States under, any bilateral or 
multilateral trade agreement with such 
country; 
(vi) are unjustifiable or impose a sig-
nificant burden or unreasonable or dis-
criminatory restriction on United States 
commerce with such country; and 
(C) describes the current status of any re-
sponsive actions taken by the United States 
with respect to acts, policies, or practices for 
which the United States Trade Representative 
has determined and included in any prior re-
port, pursuant to subparagraph (B), that the 
interests of the United States are harmed, in-
cluding responsive actions pursuant to title III 
of the Trade Act of 1974 (19 U.S.C. 2411 et 
seq.). 
(c) RESPONSE
TO ADVERSE ACTIONS.—Not later 
than 30 days after the United States Trade Representa-
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