Make Foreigners Pay Full Price For American Pharmaceuticals
The Cato Institute weighs in again in favor of allowing the reimportation of pharmaceuticals. Why?
"The current ban should be lifted, therefore, not to encourage reimportation, but to allow the incentives to surface that will "force" wider use of market practices and the international trade regimes that reflect such practices," writes Cato's Roger Pilon.
One such incentive would be forcing the pharmaceutical companies to choose between their American markets and their low profit price-controlled foreign markets. The companies' ultimatum to Canada and Europe would be something like: pay your fair share of our R&D costs by accepting higher prices or tell your citizens that they will have to go back to using older less effective drugs.