New Delhi, June 19 -- The United States Trade Representative (USTR), Jamieson Greer, announced on Thursday (local time) that Washington has launched a trade investigation. The probe targets what it calls "persistent underpayment for innovative pharmaceutical products," and could pave the way for retaliatory trade measures.

In a press release, the USTR said the investigation has been launched under Section 301 of the Trade Act of 1974. It will examine whether Berlin's persistent underpayment of innovative pharmaceutical products is unreasonable or discriminatory and whether it burdens or limits US commerce. The announcement follows months of substantive discussions between Washington and its partners in Berlin.

The investigation against ...