WTO Ruling Threatens Canada's

Health-Care System

On May 5 the World Trade Organization officially released its ruling against Canadian drug patent laws. The WTO decision to extend patent protection for some prescription drugs is expected to cost Canada's health-care system over $200 million by reducing competition in the industry and allowing prices to rise. This extra cost will increase the strain on Canada's health-care system which is already in crisis due to billions of dollars in cuts to federal funding.

The prescription drug companies have a near-monopoly position. As a result they are able to charge exorbitant prices for their products and are among the most profitable companies in the world. This negates the argument that these companies require lengthy patent protection because they invest huge amounts in research and development. A recent study on health spending showed that Canadians spend more on prescription drugs and over-the-counter medications than on almost any other aspect of health care.

Various groups have urged the federal government to appeal the WTO ruling. However, it is highly unlikely that such an appeal would be successful.