RLC Opposes Dem Sponsored H.R. 4710 Pharmaceutical Manufacturing Bill

The Republican Liberty Caucus has issued a statement in opposition to H.R. 4710 “Pharmaceutical Independence Long-Term Readiness Readiness Reform Act” by Representative John Garamendi, D-CA-3.

Forcibly localizing this supply chain would be a substantial undertaking which would require finding new sourcing in the U.S. If there is no existing alternative, it would be a long process to set up an alternative and lead to higher prices and reduced access.

This legislation, if passed, would place unnecessary sourcing requirements on medicines and medical inputs purchased with federal dollars and will disrupt existing supply chains, invite retaliatory actions from trading partners, and threaten timely access to medicines.

During this unprecedented health crisis, a Buy American policy could even threaten our ability to adequately respond to those in medical need because of the pandemic.

We urge Congress to reject any Buy American policy on medicines. This protectionist proposal has no place in our healthcare system and will upend complex and efficient supply chains, leading to higher prices, threatening access to medicines, and opening the U.S. to retaliatory measures from other countries. Increasing diversity in the supply chain should be encouraged. However, mandating production in America is the wrong way to do this.

Instead, Congress should pass legislation to attract more advanced domestic manufacturing by offering competitive incentives. Offering more incentives would help firms construct advanced manufacturing facilities in the USA and encourage the use of new technologies.