The New International Trade Regime: Problems for Publicly Funded

Similar documents
Joint Report on the EU-Canada Scoping Exercise March 5, 2009

CHAPTER ONE INITIAL PROVISIONS AND GENERAL DEFINITIONS. Section A General Definitions. 1. For purposes of this Agreement, unless otherwise specified:

DOMESTIC TRADE AGREEMENTS REGULATION

The Metropolis Project (Overview, Achievements, Lessons Learned)

Public Health Association of Australia: Policy-at-a-glance Trade Agreements & Health Policy

International trade agreements, widely viewed as a tool to

EU-Georgia Deep and Comprehensive Free-Trade Area

European Confederation of Independent Trade Unions (CESI) Position paper. EU Free Trade and Investment Agreements with a focus on CETA, TTIP and TiSA

AGREEMENT BETWEEN JAPAN AND THE EUROPEAN UNION FOR AN ECONOMIC PARTNERSHIP PREAMBLE

Brexit Implications on the Life Sciences Sector

Canada s Seasonal Agricultural Worker Program Presentation by Elizabeth Ruddick Citizenship and Immigration Canada

Submission by the. Canadian Labour Congress. to the. Department of Foreign Affairs and International Trade. Regarding

Developing Country Concerns and Multilateral Trade Negotiations

SOME FEATURES AND TRENDS OF THE WORLD TRADE IN THE GATT ERA

Anti-counterfeiting laws and access to essential medicines in East and Southern Africa

CHAPTER ONE INITIAL PROVISIONS AND GENERAL DEFINITIONS. Section A - Initial Provisions. Article 101: Establishment of the Free Trade Area

Economic Freedom Country Audit Serbia 2016

Institutional Research Consultancy Unit. RMIT University. Environmental Scan. General Agreement on Trade in Services (GATS) Volume 1.

THE UNITED NATIONS AND THE EMERGING SYSTEM OF GOVERNANCE IN INTERNATIONAL TRADE

The oikos Model WTO 2011: The Real Trade Simulation. Eugen Taso Master of Arts, 2011

Second medical use or indication claims. [Please insert name last name in CAPITAL letters please]

2 WTO IN BRIEF. Global trade rules

Opening Statement for the Senate Standing Committee on Foreign Affairs and International Trade

What Do Bar Associations Need to Know About the GATS and Other Trade Agreements

POVERTY, TRADE AND HEALTH: AN EMERGING HEALTH DEVELOPMENT ISSUE. Report of the Regional Director EXECUTIVE SUMMARY

SECRETARIAT OF LABOUR AND SOCIAL WELFARE

Putting Principles into Practice: Multilateralism and Other Values in EU Trade Policy

The World Trade Organization...

MODE 4 COMMITMENTS IN ACTION WTO Seminar Mode 4 at Work. Geneva, 10 October 2018

Energy Transit Provisions in the WTO Agreements, Energy Charter Treaty and Intergovernmental Agreements

Health Information Technology Provisions in the Recovery Act

Preferential market access in recent years has been linked to such goals as limiting civil conflict, arms sales, job losses and worker exploitation

WHO Open Forum: IMPACT frequently asked questions

Denmark and Italy Trade-related intellectual property rights, access to medicines and human rights

PRESENTATION ON KENYA S EXPERIENCE AT THE WTO

EU proposal on State-owned enterprises, enterprises granted special rights or privileges, and designated monopolies. Article x (Delegated Authority)

WTO Plus Commitments in RTAs. Presented By: Shailja Singh Assistant Professor Centre for WTO Studies New Delhi

Trade in Health Services in Pakistan

Schedule E to the Alberta Rules of Court (Alta. Reg. 390/68) AR 18/91 s1;220/93;47/2002;216/2002

Ever since the demonstrations in late 1999 against the World Trade

WTO 101: Debunking Myths About the World Trading System. by Jackie Smith and Timothy Patrick Moran PUBLISHED IN Dissent Winter 2000 issue

COMMERCIAL LICENSING REGULATIONS 2015 (CONDITIONS OF LICENCE) RULES 2015

The New Frontier of Immigration Advocacy Finding a Fix for the National Newcomer Settlement Backlog. By Mwarigha M.S.

Integrated Policing meets Civilian Oversight

2001 MA Political Science York University, Canada Areas of Concentration: International Relations and International Political Economy

Marc Lee Economist Canadian Centre for Policy Alternatives -- BC Office CANADA-U.S. CUSTOMS UNION: A CRITICAL ASSESSMENT

EU Trade Policy and IPRs Generally, all EU external economic policies including trade policies are first drafted and considered by the European Commis

PART 3: Implications and Consequences of Globalization Chapter 11 - Foundations of Economic Globalization #1 (Pages )

Dunn Library Subscription Changes

Ethiopia applied to join the World Trade Organization (WTO) in However,

Trade-related intellectual property rights, trade in services and the fulfilment of children s rights - Botswana September 2004

Negotiating High-Quality Trade Agreements. Henry Gao UNESCAP, Bangkok, Nov 27, 2018

WORLD TRADE ORGANIZATION

WORLD TRADE ORGANIZATION

CLA Advancement of Intellectual Freedom Award Acceptance Speech, Brian Campbell, 2015

Globalization and Its Consequences

Trade in Services: A South Asian Agenda NITYA NANDA

Introduction: making global trade governance work for development

Summary of Roundtables on R&D for Neglected Diseases

Introduction to the WTO. Will Martin World Bank 10 May 2006

Chapter 7. Government Policy and International Trade

World Trade Organisation Law and Policy Fundamentals This course is presented in London on: 9 February 2018

Disclosure Statement

The 43 rd Quarterly C-Suite Survey: POTUS Election, Trade Agreements, Assessment of Federal Government, and Climate Change Policies

WORLD TRADE ORGANIZATION NEGOTIATIONS

Social Studies Part 3 - Implications and Consequences of Globalization. Chapter 11 - Economic Globalization

Consensus Paper BRITISH COLUMBIA FIRST NATIONS PERSPECTIVES ON A NEW HEALTH GOVERNANCE ARRANGEMENT

Three reasons for CETA

The Merge of Antitrust Enforcement Agencies in China. and Its Implications

EMERGENCY HEALTH SERVICES (INTERIM) REGULATION

THE RECRUITMENT OF FOREIGN-TRAINED PHYSICIANS

Canada: Electronic Commerce Law Overview

MATERIAL TRANSFER AGREEMENT

Counterfeit medical products and similar crimes

Answers to the QUESTIONNAIRE on Global Health

Proposal for a COUNCIL DECISION

US-China Business Council Comments on the Draft Measures for the Compulsory Licensing of Patents

British Columbia First Nations Perspectives on a New Health Governance Arrangement. Consensus

international law of contemporary media session 7: the law of the world trade organization

TERMS OF REFERENCE FOR THE UN INTERAGENCY TASK FORCE ON THE PREVENTION AND CONTROL OF NONCOMMUNICABLE DISEASES

Comparative Analysis of the U.S. Intellectual Property Proposal and Peruvian Law

Working Your Way Into Canada 2017

External Relations of the European Union

Economics of the Trans- Pacific Partnership (TPP)

English summary of book L OMS en péril» (WHO in peril) in French, by the author, Yves Beigbeder 1.

Annex B. Application of Chapter Five and Relationship to other Chapters

TRIPS Article 28 Rights Conferred. 1. A patent shall confer on its owner the following exclusive rights:

The Doha Round in Broader Context. Thomas Oatley World View November 15, 2006

Article 1 General principles and objectives

Answer of the Canadian National Group

Executive Summary. Background

Intellectual Property in WTO Dispute Settlement

Sovereigns as Trustees of Humanity: The Obligations of Nations in an era of Global Interdependence

European action. Counterfeit, legislation, crime, Moscow Declaration, multiscetoral, consensus

The methods and procedures described must be directly applicable to production.

The World Trade Organization and the future of multilateralism Note Key principles behind GATT general principle rules based not results based

STATE GOVT S - WTO & FTA ISSUES CENTRE FOR WTO STUDIES, IIFT AUGUST 2012

The Commission s trade policy term A critical assessment

Egypt & GATS By Dr. Hanem A. Zaher Head of Sector of Tech. Support office & Projects MOHP-Egypt

World Trade Organisation Law and Policy Fundamentals

Transcription:

The New International Trade Regime: Problems for Publicly Funded Healthcare in Canada? *Aleck Ostry M.A., M.Sc. PhD. *Department of Health Care and Epidemiology and Center for Health Services and Policy Research, University of British Columbia. Contact Person: Aleck Ostry Dept. of Health Care and Epidemiology 5804 Fairview Avenue, Vancouver, BC V6T 1Z3. e-mail: ostry@interchange.ubc.ca

Introduction: Since the early 1970s and the demise of the Bretton-Woods agreement, economies have increasingly moved towards globalization as markets internationalize and de-regulate a process which has been facilitated by the World Trade Organization (WTO), with new and historically unprecedented powers to enforce trade rules (Waters 1995). Why should the process of globalization, in general, and the rise to prominence of the WTO in particular, interest health researchers and policy makers? First, because, owing to the health consequences, good and bad, of the sanctioning of monopoly pricing of new drugs and medical products and because of its influence over international trade in medical supplies, insurance, and health services the World Trade Organization is likely to emerge as one of the most important international players in health (Baris and Macleod, 2,000, 193). Second, as well as the direct impact of the WTO on the trade in medical products, globalization may also impact health by creation of a regulatory deficit, wherein national institutions are rendered less effective by the internationalization of markets. (Campbell 1993, 267). A key to understanding the regulatory deficit attendant on the internationalization of markets lies both in an appreciation of the indirect pressures brought to bear on the nation state by de-regulated international markets as well as the direct powers of coercion the WTO can now apply to nations to open markets.

In this paper I propose to discuss the potential for the WTO, through its influence on the trade in health and ancillary services, to directly impact publicly-funded health care delivery systems. Recent Changes in the International Trading Regime: Most nations are bound by the rules of the General Agreement on Tariff and Trade (GATT) established in 1946 and superseded by the World Trade Organization (WTO) in 1995. The scope of the WTO is much larger than it was under GATT. In the past, trade agreements have largely involved trade in goods such as raw/natural products, manufactured products, and commodities. Today, international agreements have been extended to include trade in intellectual property and services (the fastest growing trade sector among developed nations). The major impacts on healthcare services in developed nations will likely arise through WTO regulations governing the trade in services. Potential for Trade-In-Services Regime to Impact Health Care Delivery: The Trade-Related Intellectual Property Rights (TRIPs) agreement requires all WTO members to adopt US-style patent laws. Over the past several years, the Canadian government, under threat of patent law changes initially introduced via the Free Trade Agreement (FTA) between Canada and the United States, moved to expand patent protection for brand name drug companies at the expense of Canadian generic drug companies which had been supplying the Canadian market with low cost generic drugs (Morgan and Barer 1997). Although Canada had cracked down on its own generic drug

companies the TRIPs agreement was used to force the Canadian government to extend drug patent protection to multinationals to the full 20 years required under US patent law (Globe and Mail 2000). The implications for healthcare systems are potentially serious because enhanced patent protection, by allowing drug companies to protect themselves from competition for a longer time, will reduce the availability of cheap drugs. This is a major problem because drugs are the single fastest growing component of healthcare budgets. Another important agreement, the General Agreement on Trade in Services (GATS), covers not just cross-border trade, but every possible means of supplying a service. At present, nations have the right to keep sectors of their service economy outside the scope of GATS. However, while Canada has taken the position that its health and education services will not be included in GATS both the European Union and the United States are in the process of volunteering these sectors for full inclusion under GATS. Within the United States diverse stakeholders are trying to force health and education sectors in other nations into full inclusion under GATS. For example, the Coalition of Service Industries is calling for a major foreign ownership to be allowed for all health facilities. We believe we can make much progress in the negotiations to allow the opportunity for US businesses to expand into foreign health care markets. Historically, health care services in many foreign countries have largely been the responsibility of the public sector. The public ownership of healthcare has made it difficult for US private-

sector health care providers to market in foreign countries. (Price et al, 1999, 1891) These views are promoted by the US trade delegation at WTO which recently stated that the US is of the view that commercial opportunities exist along the entire spectrum of health and social care facilities, including hospitals, outpatient facilities, clinics, nursing homes, and assisted living arrangements (Kuttner 1999, 665). Such views are also promoted by important American health organizations. The Institute of Medicine in its recent report, America s Vital Interest in Global Health (1997), says that the direct interests of the American people will be served when the United States promotes world health and implies that the process of increased trade in health services will both enhance world health and promote American strategic interests. These kinds of statements in conjunction with recent moves by both the EU and the United States to apply GATS to their own health care services, will create external pressure on the Canadian government to do likewise. Recent moves by the Alberta government, both through contracting out of services to private providers and by the introduction and promotion of Bill C-11, could also be the trigger for WTO intervention in the Canadian health services delivery market. GATS Article 1.3 states that the hospital sector in many countries.. is made up of government-owned and privately-owned entities which both operate on a commercial basis, charging the patient or his insurance for the treatment provided. Furthermore, wherever there is a mixture of public and private funding, such as user charge or private insurance, or there are subsidies for non-public infrastructure, such as public/private

partnerships or competitive contracting for services, the service sector should be open to foreign competition. (World Trade Organization 1998). Conclusion: The WTO is emerging as an important player in the trade of in health and ancillary services. This is of particular concern for nations like Canada with publicly funded healthcare systems. There are two main areas for potential concern. First, over the past 15 years, as drugs have become the fastest growing component of healthcare costs, the power of provincial governments to control these costs has been eroded due to restrictive trade and patent rules initially introduced through the FTA agreement and consolidated under the WTO. Second, the WTO, as well as representatives of the American healthcare industry have targeted publicly funded healthcare systems, such as Canada s, as a potential market for increased trade in healthcare services. Moves to privatize components of Canada s public system, such as Bill C-11 recently passed in Alberta, provide the WTO with an opening to mount a trade challenge which could allow the entry of the American healthcare industry into Canada. References Baris E and K McLeod. Globalization and International Trade in the Twenty-First Century: Opportunities for the Threats to the Health Sector in the South. International Journal of Health Services. 30(1): 187-210, 2000. Campbell, D. The Globalizing Firm and Labour Institutions, In P. Bailey, et al. (eds) The Global Economy of the 1990s. Geneva: ILO, 1993.

Institute of Medicine. America s Vital Interest in Global Health- Protecting our People, Enhancing our Economy, and Advancing our International Interests. Washington, DC:National Academy Press, 1997. Globe and Mail. Page B10, WTO Rejects Patent Law Appeal, Sept 19 th, 2000. Kuttner R. The American Healthcare System: Wall Street and Healthcare. New England Journal of Medicine, 340: 664-668, 1999. Morgan S. and M. Barer. Evaluating Amendments to the Canadian Patent Act. Centre for Health Services and Policy Research, HPU Discussion Paper Series, Vancouver, University of BC, 1997. Price D, Pollock AM, Shaoul J. How the World Trade Organization is Shaping Domestic Policies in Healthcare, Health Policy 354:1889-1892, 1999. Waters M. Globalization. Routledge:London,NewYork, 1995. World Trade Organization: Council for Trade in Services, Background Note by the Secretariat, Sept 18 th 1998. (WTO web site).