Washington could extend its use of Section 301 trade investigations to Switzerland's pharmaceutical industry, the head of Swiss trade association Interpharma warned, saying the country may be a target as it reviews measures to cut mandatory healthcare prices.
The U.S. has already opened Section 301 inquiries into suspected unfair trade practices involving multiple countries, and last week initiated a probe centered on Germany. That investigation followed Berlin's April announcement of a healthcare reform package that includes lower spending on pharmaceutical products.
U.S. investigators have the authority to recommend tariff-related measures as a response to findings under Section 301. Sources cited in reports said the U.S. government is weighing such options against German imports, although there is said to be internal reconsideration after pharmaceutical companies voiced opposition to punitive measures.
In Switzerland, regulators are examining policy changes aimed at reducing mandatory prices within the health insurance framework - a move that could pull down drug prices if enacted. The domestic industry has been critical of the proposals, arguing they could affect the market.
Ren e9 Buholzer, CEO of Interpharma, said in a statement that Switzerland is "also a potential target in light of the current (health insurance ordinance) revision." Buholzer linked the possibility of U.S. action to a recent letter from Republican members of the U.S. Congress.
The congressional letter to the U.S. Trade Representative and the commerce secretary urged Section 301 investigations into foreign pharmaceutical pricing practices. The lawmakers contended that spending constraints imposed by other governments unfairly shift the cost burden for pharmaceutical innovation onto American consumers, and explicitly named Germany and Switzerland as countries "doubling down on their strategy to free-ride off the United States."
Switzerland is home to major drugmakers, including Roche and Novartis. The country's exports remain heavily weighted toward pharmaceuticals and chemicals - sectors that accounted for more than half of Swiss exports in the last reported year.
The situation remains fluid. Swiss policy reviews and the U.S. approach to Section 301 investigations could influence bilateral trade discussions and market dynamics for pharmaceutical exporters and importers, but no formal U.S. action specific to Switzerland has been announced.