The purpose of this study is to develop an economic analysis of the
Canadian balance of trade in pharmaceuticals. The study presents
historical trends in pharmaceutical trade, makes comparisons with
other high technology sectors and outlines opportunities and
challenges for the future.
Executive Summary
Exports have increased at almost twice the annual rate of imports over the
last six years - 30% per year compared with 18.8%.
Exports by PMAC-member companies represented approximately 80% of
pharmaceutical exports in 1995, with annual increases averaging approximately
32% since 1991.
Exports by the generic industry have increased an average of 52% per
year since 1991.
Since 1993, the increase in Canada's trade deficit in pharmaceuticals
has slowed to approximately 5% per year from its 1981 to 1993 annual average
of 18% and was only 3.8% in 1996.
The improvement in Canada's pharmaceutical trade deficit has coincided
with the strengthening of Canada's patent laws and increased R&D expenditures
in Canada.
At current rates of growth in exports and imports, increases in Canada's
pharmaceutical trade deficit would end in the year 2004 and the deficit
eliminated by the year 2008.
A further strengthening of patent protection through the introduction of
patent term restoration would bring Canada's patent laws in line with its
major trading partners, and promote further growth in the industry, including
exports
