Transcript Scott Sinclair`s presentation

Canada-EU Comprehensive
Economic and Trade Agreement
and Health Care
Scott Sinclair, Canadian Centre for Policy Alternatives
October 30, 2012
CETA and health care
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“Very high level of ambition;” “more farreaching than NAFTA”
Affects many matters only marginally
related to trade, including health care
Potential impacts on drug costs, health
care exemptions, and purchasing by
health care entities.
Negotiating timelines
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Last full negotiating session, Oct 15-26
Unresolved issues to be referred to
political level
Cdn trade and ag ministers travel to
Brussels in late Nov?
Final package by Nov 29?
Intellectual property
(pharmaceuticals)
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First bilateral FTA since the NAFTA to have
an intellectual property rights chapter
Under WTO rules patent holders now have
20 years of monopoly protection
The EU wants to extend these patent
terms for brand-name drugs
EU demands on drug patents
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“Patent term restoration" mechanism
Longer terms of data protection and
exclusivity
New rights of appeal for patent holders
Such measures would further reduce the
availability of generic drugs, driving costs
higher
Patent term extension
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Most important, and costly, European
demand
Grootendorst and Hollis study, $811
million for each additional year of
monopoly protection
Faster approval times lead to safety
problems
Brand-name industry and
government claims
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Myth that CETA will increase drug costs
(DFAIT)
Brand-name companies argue that
increased costs will spur research and
innovation
Consistently failed to meet R&D targets
Many new drugs have limited therapeutic
value (me-too drugs)
Federal government research
confirms higher costs
Option
1. EU proposal
2. Regulatory
review period
3. Regulatory
delay
Extra
time
Extra cost,
Extra cost,
low estimate high estimate
2.66
years
1.23
years
18 days
$795 million
$1.95 billion
$367 million
$903 million
$15.7 million
$36.2 million
Summary
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Increased drug costs
Increased safety risks
Floor for further concessions in future
agreements
Serious blow to an already overburdened
health care system
Canada-EU Comprehensive
Economic and Trade Agreement
and Health Care
Scott Sinclair, Canadian Centre for Policy Alternatives
For further information:
www.policyalternatives.ca
Access to sub-federal
government procurement
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High EU priority. They want deep
commitments.
Seeking sweeping coverage especially at
the provincial, crown corporation,
municipal and broader public sector levels.
Explicitly targeting local benefit provisions
(renewable energy & urban transit)
“Offsets” are prohibited
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Offsets are “any condition or undertaking
that encourages local development such
as the use of domestic content, the
licensing of technology, investment,
counter trade and similar action or
requirement”
Thresholds and tendering rules
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$300,000 for goods and services, $8
million for construction and “concessions”
Prescriptive tendering rules
Single electronic gateway
Supplier can bring complaint to an
administrative tribunal
Investor could bring claim to investorstate arbitration
Main concerns for health entities
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Purchasing of health care services per se
excluded, but other purchasing covered
Loss of flexibility to purchase locally (e.g.
local food purchasing)
Increased administrative costs (electronic
tendering and inflexible tendering
procedures)
Increased litigation risks
Canada-EU Comprehensive
Economic and Trade Agreement
and Health Care
Scott Sinclair, Canadian Centre for Policy Alternatives
For further information:
www.policyalternatives.ca