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GATS and Procurement of Pharmaceuticals

The World Trade Organization's Guaranteed Agreement on Trade in Services (GATS) could strike down state Medicaid PDLs if they were found to be setting limitations on sales of pharmaceutical products.  PhRMA has argued that PDL programs based on price and effectiveness are "market access barriers of concern [that] include pricing and reimbursement practices that fail to recognize the value of patented innovative medicines."  GATS also includes language saying that domestic regulations may not be "more burdensome than necessary," and PhRMA has argued that assessing the price competitiveness of drugs is overly burdensome. 


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