Fixing Global Freeloading Act

I 116TH CONGRESS 1ST SESSION H. R. 2209 To establish the position of Chief Pharmaceutical Negotiator in the Office of the United States Trade Representative responsible for conducting trade negotiations and enforcing trade agreements related to acts, poli- cies, and practices of foreign governments that fail to appropriately reward United States innovation with respect to pharmaceuticals, and for other purposes. IN THE HOUSE OF REPRESENTATIVES APRIL 10, 2019 Mr. MEADOWS introduced the following bill; which was referred to the Committee on Ways and Means A BILL To establish the position of Chief Pharmaceutical Negotiator in the Office of the United States Trade Representative responsible for conducting trade negotiations and enforc- ing trade agreements related to acts, policies, and prac- tices of foreign governments that fail to appropriately reward United States innovation with respect to pharma- ceuticals, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 01:06 Apr 19, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2209.IH H2209 kjohnson on DSK79L0C42 with BILLS 2 •HR 2209 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Fixing Global Free- 2 loading Act’’. 3 SEC. 2. FINDINGS. 4 Congress finds the following: 5 (1) International government price controls of 6 pharmaceutical products and services creates an un- 7 fair playing field because the rest of the world relies 8 on and benefits from the biopharmaceutical innova- 9 tion that takes place in the United States, which 10 supports 4.5 million jobs and amounts to $90 billion 11 in research and development investment every year. 12 (2) The United States pays the cost of devel- 13 oping innovative and life-saving prescription drugs 14 while other countries refuse to pay their fair share 15 for their health care needs. 16 (3) In fact, some of the United States trading 17 partners are ignoring obligations established under 18 trade agreements and setting up discriminatory 19 rules to benefit local competitors over United States 20 companies. 21 (4) Between 2010 and 2011, 23 countries im- 22 plemented 89 distinct measures to contain govern- 23 ment spending on prescription drugs. Most used 24 their single-payer healthcare systems to impose drug 25 price controls alongside increased copayments, value- 26 VerDate Sep 11 2014 01:06 Apr 19, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2209.IH H2209 kjohnson on DSK79L0C42 with BILLS 3 •HR 2209 IH added tax rates on prescription drugs, and other 1 measures. 2 (5) Studies have shown that government price 3 controls result in prices below actual market value 4 and push the burden of paying for innovative treat- 5 ments on to United States patients. 6 SEC. 3. CHIEF PHARMACEUTICAL NEGOTIATOR. 7 (a) IN GENERAL.—Section 141 of the Trade Act of 8 1974 (19 U.S.C. 2171) is amended— 9 (1) in subsection (b)(2)— 10 (A) by striking ‘‘and one Chief Innovation 11 and Intellectual Property Negotiator’’ and in- 12 serting ‘‘one Chief Innovation and Intellectual 13 Property Negotiator, and one Chief Pharma- 14 ceutical Negotiator’’; 15 (B) by striking ‘‘or the Chief Innovation 16 and Intellectual Property Negotiator’’ and in- 17 serting ‘‘the Chief Innovation and Intellectual 18 Property Negotiator, or the Chief Pharma- 19 ceutical Negotiator’’; and 20 (C) by striking ‘‘and the Chief Innovation 21 and Intellectual Property Negotiator’’ and in- 22 serting ‘‘the Chief Innovation and Intellectual 23 Property Negotiator, and the Chief Pharma- 24 ceutical Negotiator’’; and 25 VerDate Sep 11 2014 01:06 Apr 19, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2209.IH H2209 kjohnson on DSK79L0C42 with BILLS 4 •HR 2209 IH (2) in subsection (c), by adding at the end the 1 following new paragraph: 2 ‘‘(7) The principal function of the Chief Phar- 3 maceutical Negotiator shall be to conduct trade ne- 4 gotiations and to enforce trade agreements relating 5 to United States pharmaceutical products and serv- 6 ices. The Chief Pharmaceutical Negotiator shall be 7 a vigorous advocate on behalf of United States phar- 8 maceutical interests. The Chief Pharmaceutical Ne- 9 gotiator shall perform such other functions as the 10 United States Trade Representative may direct.’’. 11 (b) COMPENSATION.—Section 5314 of title 5, United 12 States Code is amended by striking ‘‘Chief Innovation and 13 Intellectual Property Negotiator, Office of the United 14 States Trade Representative.’’ and inserting the following: 15 ‘‘Chief Innovation and Intellectual Property Nego- 16 tiator, Office of the United States Trade Representative. 17 ‘‘Chief Pharmaceutical Negotiator, Office of the 18 United States Trade Representative.’’. 19 (c) REPORT REQUIRED.—Not later than one year 20 after the appointment of the first Chief Pharmaceutical 21 Negotiator pursuant to paragraph (2) of section 141(b) 22 of the Trade Act of 1974, as amended by subsection (a), 23 and annually thereafter, the United States Trade Rep- 24 resentative shall submit to the Committee on Finance of 25 VerDate Sep 11 2014 01:06 Apr 19, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2209.IH H2209 kjohnson on DSK79L0C42 with BILLS 5 •HR 2209 IH the Senate and the Committee on Ways and Means of the 1 House of Representatives a report describing in detail— 2 (1) enforcement actions taken by the Trade 3 Representative during the one-year period preceding 4 the submission of the report to ensure the protection 5 of United States pharmaceutical products and serv- 6 ices; and 7 (2) other actions taken by the Trade Represent- 8 ative to advance United States pharmaceutical prod- 9 ucts and services. 10 Æ VerDate Sep 11 2014 01:06 Apr 19, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H2209.IH H2209 kjohnson on DSK79L0C42 with BILLS