Reimportation: Trojan Horse, not Free Trade
by Doug Bandow on 06/30/2003
2 Pages
Synopsis:
Proponents claim that legalizing prescription drug reimportation from overseas countries will lower the cost of drugs to U.S. consumers, and some proponents claim that allowing reimportation is a "free trade" issue. But reimportation is a Trojan Horse for importing the deficient regulatory regimes of foreign countries, rather than importing their prices. And the notion that there is a "worldwide price" ignores the reality of international markets, exchange rates, etc.
In truth, drugs are cheaper overseas because those nations are using subsidies and price controls, and are getting a "free ride" on U.S. innovation. Unfortunately, the alternative is not cheaper drugs in the U.S.--it is less innovation.
And proponents of reimportation are ignoring unintended consequences of legalization, such as fewer lifesaving drugs available to foreign nations. And, for innovation to continue, Americans would bear an even greater relative burden of global R&D expenditures.
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