Roberta Metsola, President of the European Parliament, urged Germany to reach an agreement with the Trump administration regarding trade disputes arising from drug pricing. In an exclusive interview on the sidelines of the United Nations General Assembly in New York, she emphasized the importance of dialogue and agreement, stating: "If you don't speak directly and reach an agreement, the consequences may be harder than you can bear."
Investigation by the Office of the United States Trade Representative
The Office of the United States Trade Representative is currently examining Germany's drug pricing policies and has accused the country of "continuously paying below market" for pharmaceutical products. In a hearing this week in Washington, a clear majority of witnesses supported this claim. This investigation could ultimately provide legal justification for Trump to impose new tariffs on German exports.
Agreement and its impact on trade relations
Metsola urged both sides to reach an agreement between Washington and Berlin to prevent "impossible competition in the pharmaceutical sector." She stated that Europe can still be a leader in pharmaceuticals but must become "much more agile," not only in pricing but also in clinical trials and bringing new products to market.
Metsola also warned the U.S. government that any increase in tariffs on German goods could violate the 15% agreement that Trump made with European Commission President Ursula von der Leyen last year in Turnberry, Scotland. She referenced the suspension clause in the trade agreement, stating that there are "legal consequences" if the Trump administration targets specific EU countries.
In a speech on the sidelines of the meeting, she emphasized the need for "protections" for artificial intelligence. This topic is currently one of the hot issues in Washington, as leaders of major American technology companies have called for a slowdown in the development of some of the most advanced technologies.
Metsola stressed that competition in artificial intelligence is between democracies and authoritarian governments, and Europe and the U.S. must cooperate in this competition.
She also highlighted the importance of dialogue with China, stating that the European Union cannot become a consumer continent and needs a "honest" and "strong" conversation with Beijing.
Metsola urged the remaining EU countries that have not yet ratified the CETA free trade agreement with Canada to do so. She pointed to the importance of the EU-Canada summit in Montreal in October, stating that this summit will be an opportunity to finalize the digital trade agreement.
