Swiss Pharma May Face US Trade Investigation Amid Healthcare Policy Changes
Potential US Trade Actions and Swiss Healthcare Policy Reforms
ZURICH, June 26 (Reuters) - The United States could open a trade investigation into Switzerland's pharmaceutical industry similar to the one initiated last week against Germany, the head of Swiss industry body Interpharma said on Friday.
Background: Section 301 Investigations and Recent Developments
Washington has launched so-called Section 301 investigations into suspected unfair trade practices against dozens of countries.
It initiated the probe against Germany after Berlin unveiled plans in April for a wide-ranging overhaul of its statutory healthcare system, including plans to lower spending on pharmaceutical products.
Implications for Germany
The investigation could result in the U.S. taking tariff-related action against German imports, though sources have since said the government is backtracking on the plan following opposition from pharmaceutical companies.
Switzerland's Healthcare Policy Changes
Switzerland is also currently reviewing measures aimed at reducing mandatory healthcare prices, which could see drug prices lowered, something the industry has criticised.
Industry Response
"It is clear that Switzerland is also a potential target in light of the current (health insurance ordinance) revision," Interpharma's CEO René Buholzer said in a statement.
US Congressional Pressure
Buholzer pointed to a letter written by Republican U.S. congressmen this month urging the U.S. Trade Representative and commerce secretary to open Section 301 investigations into unfair foreign pharmaceutical pricing policies.
The lawmakers, who argued foreign governments' curbs on spending unfairly push the burden of pharmaceutical innovation onto U.S. consumers, named both Germany and Switzerland as "doubling down on their strategy to free-ride off the United States".
Swiss Pharmaceutical Industry Overview
Switzerland is home to major drugmakers including Roche and Novartis, and pharmaceutical and chemical products made up over half of its exports last year.
(Reporting by Marleen Kaesebier in Zurich; Editing by Joe Bavier)
