The Market Institute has joined the Center for a Free Economy and more than three dozen national organizations in urging Congress to pass the USTRx Act (H.R. 4780), legislation that would help end the unfair practice of foreign governments shifting the cost of pharmaceutical innovation onto American patients.
In a coalition letter sent to House Budget Committee Chairman Jodey Arrington, the organizations argue that many countries with government-run healthcare systems artificially suppress the prices they pay for innovative medicines developed in the United States. Rather than reducing the true cost of research and development, these policies force American patients to shoulder a disproportionate share of those expenses.
The legislation would establish a Chief Pharmaceutical Trade Negotiator within the Office of the United States Trade Representative (USTR). This official would be responsible for identifying foreign pharmaceutical price controls, intellectual property abuses, and other unfair trade practices that increase costs for Americans while issuing annual recommendations for corrective action. The proposal also implements Section 3 of President Trump’s executive order on prescription drug pricing, which directs the administration to address discriminatory foreign practices that undermine American innovation.
As the coalition explains:
“When countries which practice socialized medicine impose a government price control on prescription drugs researched and manufactured in America… the price difference is made up for by American patients paying more than they should have to for the same drugs. It’s become known as ‘foreign freeloading.'”
The letter points to countries including Germany, France, Italy, Japan, and Canada, arguing that their pricing policies allow them to benefit from American pharmaceutical innovation without paying market value. According to the coalition, this places an unfair financial burden on U.S. seniors and patients while weakening incentives for future medical breakthroughs.
The Market Institute believes policies that protect intellectual property, promote fair trade, and ensure foreign governments pay their fair share for American innovation are critical to lowering drug costs without undermining the research that delivers tomorrow’s cures. By confronting foreign price controls through trade policy rather than domestic price controls, the USTRx Act offers a market-oriented approach to making medicines more affordable for American patients.
Download the full letter here.
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