ACU Statement on Price Fixing and Illegal Drug Importation

ACU Opposes Price Fixing and Illegal Drug Importation

ALEXANDRIA, VA – The American Conservative Union (ACU) has long opposed importing price controls from socialist countries. We oppose socialism in all its forms. That is why we have also consistently opposed the illegal “importation” of price-controlled prescription drugs.

Artificially gaming the price of prescription drugs is the wrong direction and runs counter to the market-based initiatives that would not only help drive down the cost of prescription drugs in America, but force nations around the world to abandon their systems of socialized medicine in favor of a more market-based approach. Similarly, the temptation to reward socialist countries should be rejected when it comes to importation policy. Permitting price-controlled drugs to enter the U.S. market is not free trade; instead it is importing socialist policies that undermine free-market approaches that drive innovation forward.

ACU recognizes the importance of a vibrant environment for consumer choice and market competition, but adopting policies of government intrusion into industry practices and standards will not reduce drug prices in the long term. Instead, as countless examples demonstrate, it will greatly reduce the availability of drugs and bring to a halt innovation and health outcome improvements to consumers. That innovation is critical now more than ever as we must restart the economy and get the country back to work.

Countless research has shown utilizing socialist schemes in order to game the price of prescription drugs, as some progressive governments around the world have done, would be harmful both from a policy perspective as well as a consumer and economic perspective. The groundbreaking research we see from many companies that are working to create and perfect these life-saving medicines would cease to exist.

“Free market forces are what makes for greater competition and choice,” said ACU Executive Director Daniel Schneider. “Greater competition and choice in healthcare will lead to more innovation which will lead to more medicines, more cures, and lower prices. Importing the failed ideas of government price controls and socialism never works.”

ACU has consistently opposed illegal importation and the International Pricing Reference system. We continue to oppose these measures and we urge the White House to look to alternative approaches that will drive innovation higher, drive costs lower, and ensure the availability of life-saving medicines for Americans.