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 for China. The United States also urges China to adopt regulatory and reimbursement policies for medical devices that support innovation and increase the transparency and predictability in that market.

The United States shares policy goals and concerns related to health care with other industrialized countries, including challenges surrounding aging populations and rising health care costs. The United States also shares the objective of continued improvement in the health and quality of life of its citizens and delivering care in the most efficient and responsive way possible. The United States hopes these dialogues will help to address specific concerns related to price controls and regulatory and transparency issues, as well as to develop a constructive dialogue with these countries on health policy issues of mutual concern.

During the coming year, the U.S. Government will continue to engage in dialogue with industrialized country trading partners, including Italy, Germany, Canada, and France, on issues related to innovation in the pharmaceutical sector and other aspects of health care goods and services. In addition to continuing to advocate for pricing and reimbursement policies that appropriately value innovation and which are administered in a transparent and open manner, the United States will devote additional attention to trends in the area of health technology assessment (HTA) and the relationship of such assessments to pricing policies. The United States believes it important that HTA policies be implemented in a transparent manner and in keeping with international standards of science-based evaluation. In addition, issues surrounding the ability of health care consumers to obtain information about pharmaceutical and other medical products merits additional attention and dialogue.

WTO Dispute Settlement

The United States will continue pursuing the resolution of WTO-related disputes announced in previous Special 301 reviews and determinations. The most efficient and therefore preferred manner of dispute resolution is through informal consultation and settlement, but where this is unsuccessful, the United States will consider fully utilizing the dispute settlement process.

In April 2007, the United States requested WTO dispute settlement consultations with China over deficiencies in China's legal regime for protecting and enforcing copyrights and trademarks on a wide range of products. After those consultations failed to resolve the matter, on August 13, 2007, the United States requested the establishment of a WTO panel. The panel request expresses United States concerns that certain Chinese measures are inconsistent with China's obligations under the TRIPS Agreement. The panel request focuses on three main issues: quantitative thresholds in Chinese law that must be met in order to start criminal prosecutions of copyright piracy and trademark counterfeiting and that appear to create a substantial safe harbor for those who manufacture, distribute, or sell pirated and counterfeit products in China; rules for disposal of IPR infringing goods seized by Chinese customs authorities; and the apparent denial of copyright protection to works poised to enter the Chinese market but awaiting Chinese censorship approval. A WTO panel was established to examine this matter on September 25, 2007, and panelists were appointed on December 13, 2007.