00:00The United States has launched a trade investigation into Germany
00:04over its plans to cut spending on pharmaceuticals.
00:07U.S. Trade Representative Jameson Greer says the probe is looking into
00:12whether Berlin's drug pricing policies are unfair or discriminatory towards American companies.
00:20The investigation comes under Section 301 of the U.S. Trade Act
00:24and could lead to tariffs on German exports if Washington finds evidence of unfair practice.
00:31Germany is facing growing financial pressure on its public health care system
00:35with a projected budget shortfall of around €20 billion.
00:39To help control the cost, Berlin has proposed measures that would require pharmaceutical companies
00:44to offer larger discounts on expensive new drugs.
00:48However, the Trump administration argues that such policies allow countries like Germany
00:53to access medicines at much lower prices,
00:55forcing American consumers to shoulder a disproportionate share of the cost of developing new medicines.
01:01Just two months ago, Washington used these exact same trade threats
01:05to pressure the UK into a historic deal,
01:07forcing the British government to effectively double its spending on new medicines
01:11to avoid American tariffs.
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