In response high drug prices the Canadian government amended the country's patent act in 1969 to allow for compulsory licensing to import pharmaceuticals. As a result of the legislation, by 1983 drug costs in Canada were over $200 million lower than they would otherwise have been. The multinational drug industry was strongly opposed to compulsory licensing despite any evidence that its economic position had been harmed. Restoration of patent protection for drugs was one of the key American demands during free trade negotiations between Canada and the United States in 1985-87. The result was Bill C-22 which gave new drugs protection from compulsory licensing for seven to ten years. In 1993 as a result of the provisions of the North American Free Trade Agreement and the TRIPS negotiations Canada passed Bill C-91 which abolished compulsory licensing in the pharmaceutical area. The loss of compulsory licensing has damaged the generic industry in Canada, hurt the ability of provincial drug plans to contain costs and has lead to higher prices for prescriptions. While the negotiating text for the Free Trade Area of the Americas is still secret there are rumours that rules governing intellectual property rights may be made even more stringent. If true, this development could further damage Canada's ability to control drug costs.
Learning Objectives: At the end of this presentation the audience will have an understanding of how free trade agreements have affected access to drugs and drug prices in Canada.
Presenting author's disclosure statement:
Organization/institution whose products or services will be discussed: None
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.