April 7, 2000 (7:00 p.m. EDT) No. 69

CANADA WELCOMES ADOPTION OF WTO RULING

The Government of Canada is very pleased that the World Trade Organization (WTO) Dispute Settlement Body has today adopted the panel's March 17 report validating Canada's early working exception.

"For more than two years, we have vigorously defended Canada's patent regime against this challenge," said International Trade Minister Pierre S. Pettigrew. "We are very happy that the report has been adopted by the Dispute Settlement Body and that the European Union (EU) has accepted the panel's ruling. This sends the right message to our WTO partners that the early working exception, a fundamental component of Canada's balanced patent regime, is consistent with international rules."

In Canada, the early working exception allows manufacturers to seek regulatory approval for competing versions of patented products prior to the expiration of the patent term. This exception is particularly important for the pharmaceutical sector.

"Canada's win in the WTO proves that it is possible to have effective patent protection and effective competition that benefit consumers," said Minister of Industry John Manley. "With this positive ruling, Canada will continue to have a very favourable patent regime for the early entry of generic drugs on the market. This is a key benefit for consumers."

"I am pleased with the news," said Health Minister Allan Rock. "We are committed to a high quality, cost-effective health care system. The ruling ensures that Canadians will continue to have access to high quality, lower cost medicines as part of that system."

The panel decided that Canada's stockpiling exception was not consistent with its international obligations. The benefits of the stockpiling exception are minimal relative to the advantage of the early working exception. The Government of Canada will notify the WTO Dispute Settlement Body, within 30 days, of its intention in respect of implementation of this aspect of the panel's ruling.

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For further information, media representatives may contact:

Sylvie Bussières

Office of the Minister for International Trade

(613) 992-7332

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

Tony Macerollo

Office of the Minister of Industry

(613) 995-9001

Derek Kent

Office of the Minister of Health

(613) 957-1515

This document is also available on the Department of Foreign Affairs and International Trade's Internet site: http://www.dfait-maeci.gc.ca