Canada falls short of international standards when it comes to protecting intellectual property (IP) in the pharmaceutical industry, which could stifle trade and economic growth, according to a Fraser Institute report.
“Pharmaceutical innovators face shorter effective periods of patent protection in Canada, fewer years of data exclusivity, and an unequal court appeal process compared to the property protections available in the United States and European Union,” says Kristina Lybecker, a senior fellow at the think tank and an associate professor of economics at Colorado College.
She explains that addressing these areas would enhance innovation in the pharmaceutical industry and facilitate Canada’s accession to international trade agreements currently under negotiation.
For example, implementing a free trade agreement with the European Union alone would boost Canada’s exports by $12 billion annually. And completing the Trans-Pacific Partnership Agreement, which would provide access to the Asian market, could increase Canadian exports by $16 billion a year.
The trade and economic benefits of enhanced IP protection would outweigh the estimated $367 million to $903 million annual increase in pharmaceutical costs, according to Lybecker.
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