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    Will Anyone Blink First? Canada - EU Trade Agreement Appears to Hit a Stalemate

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    Friday February 22, 2013

    Canadian and European officials traded public barbs yesterday over the inability to finalize the Canada - EU Trade Agreement. EU Trade Commissioner Karel De Gucht said unless Canada makes some additional steps, there will be no deal. Canadian officials responded that Europe has yet to meet Canada's core concerns.  The comments come after a ministerial meeting this month was unable to yield an agreement. De Gucht and Canadian International Trade Minister Ed Fast met in Brussels in November 2012, but those talks failed to solve the outstanding issues. The two ministers met again in Ottawa two weeks ago with a similar result.

    While officials continue to put a brave face on the talks, the latest comments suggest mounting frustration at the unwillingness of either side to cave on key issues in order to strike a deal. The major remaining issues have been the same for months: agriculture, patent protection for pharmaceutical companies, investor access and protection, public procurement, automotive issues, and cultural protections.  Indeed, these issues were identified years ago as the major areas of disagreement (copyright was initially on this list but the defeat of ACTA removed it as an issue). 


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    Conservatives Defeat Bill Promoting Developing World Access to Generic Drugs

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    Thursday November 29, 2012
    The Conservative government has defeated a bill designed to amend the Access to Medicines Regime that allows for enhanced access to generic pharmaceuticals in the developing world. Despite the fact that other countries are doing far more to support access, Industry Minister Christian Paradis claimed the bill would violate WIPO standards.
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    The CETA Leak: Major Outstanding Issues Remain in an Unbalanced Deal

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    Monday November 26, 2012
    As International Trade Minister Ed Fast returns from negotiations in Europe that failed to secure a deal on the Canada - EU Trade Agreement, newly leaked documents to the CAQ and posted by LaPresse provide a detailed look at the remaining outstanding issues with details on the Canadian and European positions. The documents (1, 2, 3, 4) make it clear that the EU recognizes the deal is unbalanced as there are far more demands for Canadian changes than European ones. The EU retains the hope that Canada will cave on the EU demands since "the EU market to which it gains preferential access is much larger than its own."

    This ranks as perhaps the most important CETA leak to date, since it clearly identifies the key remaining issues, the European demands, and the massive changes that would be required for Canada to comply with the treaty.  Some of the changes demanded by Europe include patent reform that could add billions to Canadian health care costs, the removal of foreign ownership restrictions on telecommunications and book publishing, the opening of public procurement for the energy and public transport sectors, eliminating Investment Canada Act review for European investments, new restrictions on the sale of a myriad of products such as feta and parmesan cheese, changes to agricultural protections (ie. supply management), and the adoption of European standards on passenger cars. This would require dramatic changes across the Canadian economy, all for what even the Europeans acknowledge are limited gains for Canada.

    Given what is at stake, there needs to be an open debate and consultation before an agreement is reached (which is no longer a certainty) and Canada should be considering whether a scaled down version of CETA - one that focuses primarily on a reduction of tariffs for trade in goods - is a better model. A closer look at the some of the remaining issues is posted below.




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    Supreme Court Serves Stunning Reminder of Patent Bargain

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    Thursday November 22, 2012
    The House of Commons Committee on Industry, Science and Technology has spent the past few months hearing from a myriad of companies on the Canadian intellectual property system. With few public interest groups invited to appear, one of the primary themes has been the call for more extensive patent protections, as witnesses link the patent system to innovation and economic growth.

    While policies that purport to help the economy unsurprisingly generate considerable support, my weekly technology law column (Toronto Star version, homepage version) notes the Supreme Court of Canada recently provided a powerful reminder about the true purpose of patent law in a decision involving Pfizer's patent for Viagra, the well-known erectile dysfunction medication. Teva Pharmaceuticals, one of the world's leading generic pharmaceutical manufacturers, had lost successive challenges against the Viagra patent, but managed to pull out a win when it mattered most. The decision has already had considerable fallout, as Pfizer has asked for a rehearing, had the patent confirmed as invalid in a Federal Court case with Apotex, and dropped its retail price to match the generic pricing.


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