[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2466 Introduced in Senate (IS)]







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.

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

SECTION 1. FINDINGS.

    Congress makes the following findings:
            (1) The United States leads the world in the discovery and 
        development of new prescription medicines to help and heal 
        patients.
            (2) The National Institutes of Health lead the way in basic 
        biomedical research conducted in-house and sponsored in 
        academic institutions. Basic research advances knowledge about 
        human biology and disease. The National Institutes of Health is 
        funded through appropriations of general revenues.
            (3) The use of price controls by foreign governments on 
        innovative medicines distorts trade, disadvantages Americans, 
        and constitutes an unjustifiable, unreasonable, and 
        discriminatory practice that burdens or restricts United States 
        commerce within the meaning of section 301 of the Trade Act of 
        1974.
            (4) Prescription medicines today are often an effective 
        therapy to help and heal patients and, therefore, access to 
        prescription medicines at affordable prices is important for 
        Americans.
            (5) The price controls maintained by foreign governments on 
        innovative medicines undermine the value of intellectual 
        property rights held by American research institutions and 
        pioneer pharmaceutical manufacturers.

SEC. 2. ACTIONS TO ELIMINATE INEQUITIES IN PHARMACEUTICAL TRADE.

    (a) Negotiations.--The United States Trade Representative, with the 
advice of and in consultation with the Secretary of Health and Human 
Services, shall enter into negotiations with the Governments of the 
other G-8 countries in order to achieve the agreement of those 
Governments to eliminate price controls on innovative medicines and the 
unfair trade practices that result from the application of price 
controls.
    (b) Conditional Requirement for Additional Actions.--
            (1) In general.--If, within 12 months after the date of 
        enactment of this Act, negotiations under subsection (a) have 
        not achieved the objectives set forth in that subsection, the 
        United States Trade Representative shall submit to Congress 
        recommendations for the most effective measures (including the 
        effect of imposing measures under the authority of section 301 
        of the Trade Act of 1974) for eliminating the disparity between 
        the price of prescription drugs in the United States and the 
        price of prescription drugs in the other G-8 countries with the 
        goal of reducing the price of prescription drugs for United 
        States consumers.
            (2) Measures recommended.--The measures recommended under 
        paragraph (1) shall be of a nature and amount that fully 
        reflect the economic harm that is inflicted on patients and 
        health care in the United States, and the harm that is 
        inflicted on the United States economy when countries pay the 
        country specific marginal costs of prescription drugs and let 
        the United States cover the research and development costs of 
        innovative prescription drugs.
            (3) Consultation with federal trade commission.--In 
        determining the measures to recommend under paragraph (1), the 
        United States Trade Representative shall consult with the 
        Federal Trade Commission and shall also seek the advice of--
                    (A) the United States International Trade 
                Commission regarding the extent of the direct and 
                indirect harm to the United States economy;
                    (B) the Secretary of Health and Human Services 
                regarding the extent of the direct and indirect harm 
                caused to American patients and health care;
                    (C) the relevant private sector advisory committees 
                established under section 135 of the Trade Act of 1974 
                (19 U.S.C. 2155); and
                    (D) representatives of appropriate interested 
                private sector and other nongovernmental organizations.
    (c) Definition.--For purposes of this section, the term ``G-8 
countries'' means the group of 8 industrial countries consisting of 
Canada, France, Germany, Great Britain, Italy, Japan, Russia, and the 
United States established to facilitate economic cooperation.
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