USTRx Act

Summary#

This bill creates a new Chief Pharmaceutical Trade Negotiator position in existing trade law. The negotiator would conduct trade talks, enforce trade agreements for U.S. pharmaceutical products, and address acts or policies of high-income countries that significantly harm U.S. manufacturers' market access. The negotiator may consult the Chief Intellectual Property Negotiator.

The bill requires the U.S. Trade Representative (USTR) to compile an annual list of high-income countries using World Bank classifications. For each country on that list, the USTR must publish a yearly report reviewing that country’s pharmaceutical trade acts, policies, and practices from the prior fiscal year. The report must decide whether those actions are unfair, non-transparent, non-market-based, deny reciprocal market access, reduce incentives for innovation, conflict with trade agreements, or place an unfair burden on U.S. commerce. The report must also describe any U.S. responsive actions already taken.

If the USTR determines a country’s act, policy, or practice meets the bill’s adverse criteria, the USTR must, within 30 days, submit a plan to the House Ways and Means Committee and the Senate Finance Committee to respond. That plan may include opening an investigation under Title III of the Trade Act of 1974.

The bill also states findings and a sense of Congress that foreign pharmaceutical price controls can depress prices, undervalue innovation, and shift development costs to the United States, and it urges use of trade tools to address those concerns.

What it means for you#

  • The USTR would get a new official focused on pharmaceutical trade issues.
  • The USTR must publish yearly reviews of high-income countries’ drug pricing and related trade practices.
  • Congress would receive regular reports and, if the USTR finds a harmful practice, a response plan within 30 days.
  • U.S. pharmaceutical manufacturers and trade committees are the primary direct participants in the process described.

Expenses#

No publicly available information.

Proponents' View#

The bill’s findings and sense of Congress say that foreign government price controls on drugs can lower global prices, reduce incentives for developing new medicines, and unfairly rely on U.S. patients and taxpayers to fund innovation. The bill frames a dedicated negotiator and USTR action as necessary to promote transparent, fair, and market-based treatment of U.S. pharmaceutical products and to protect U.S. market access.

Opponents' View#

No publicly available information.