Trade and the Economic Benefits of Enhanced Intellectual Property Protection for Pharmaceuticals in Canada

Fraser Institute Studies in Economic Prosperity, July 2013

56 Pages Posted: 30 Aug 2013

See all articles by Nadeem Esmail

Nadeem Esmail

Fraser Institute

Kristina M.L. Acri née Lybecker

Colorado College - Department of Economics & Business

Laura Ritchie Dawson

Carleton University - Centre for Trade Policy and Law

Date Written: July 9, 2013

Abstract

Canada is in the midst of negotiations over the Comprehensive Economic and Trade Agreement (CETA) with the European Union, and the multi-country Trans-Pacific Partnership (TPP). A key issue to be settled in these negotiations is intellectual property (IP) protection for pharmaceutical innovation. Canada faces pressure to enhance IP protection so that it more closely aligns with protection that prevails in Europe and the United States, among other nations.

The pressure for Canada to enhance IP protection comes on three fronts. The first is patent term restoration (that is, restoring patent time lost to mandatory regulatory delays). The second is on a right of appeal for patent holders (in other words, allowing patent holders in Canada the right to appeal court rulings that invalidate their patent). And the third is extended data exclusivity, the time during which generic manufacturers are not permitted to use innovator data for drug approvals.

A central question for Canada in these negotiations is whether the increased cost of medicines that would result from enhanced IP protection are outweighed by potential economic benefits, such as additional economic activity in the innovative pharmaceutical sector in Canada and those generated by free trade agreements. The two essays in this series seek to answer that question by examining potential gains from trade as well as additional economic benefits that would result from stronger intellectual property protection in Canada.

Keywords: Health

Suggested Citation

Esmail, Nadeem and Acri née Lybecker, Kristina M.L. and Dawson, Laura Ritchie, Trade and the Economic Benefits of Enhanced Intellectual Property Protection for Pharmaceuticals in Canada (July 9, 2013). Fraser Institute Studies in Economic Prosperity, July 2013. Available at SSRN: https://ssrn.com/abstract=2317585

Nadeem Esmail (Contact Author)

Fraser Institute ( email )

1770 Burrard Street
4th Floor
Vancouver, British Columbia V6J 3G7
Canada

Kristina M.L. Acri née Lybecker

Colorado College - Department of Economics & Business ( email )

14 E Cache La Poudre Street
Colorado Springs, CO 80903
United States
719-389-6445 (Phone)
719-389-6927 (Fax)

Laura Ritchie Dawson

Carleton University - Centre for Trade Policy and Law ( email )

Ottawa, Ontario
Canada

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