Topics
Marketing Canadian expertise to the world
The rapid growth of biotechnology, with its multitude of existing and potential applications, means it is poised to become a dominant force in the global economy. Biotechnology is being targeted by most industrialized countries as one of the most important sources of jobs and economic and social progress in the 21st century. Canada's position as a responsible leader in biotechnology is internationally recognized. Our country is home to over 400 bio-based firms - the second largest number of biotechnology companies in the world - generating revenues that rank third internationally, behind the United States and the United Kingdom. The Department of Foreign Affairs and International Trade (DFAIT) is actively engaged in promoting Canadian capability in biotechnology in the global marketplace. Through the Trade Commissioner Service, the Science and Technology Division, the Technical Barriers and Regulations Division and other divisions in the Trade Policy Bureau, DFAIT works to improve market access for Canadian biotechnology products, manage trade relationships and support Canadian business.
Open international markets, combined with a stable and transparent trading environment, are at the core of Canada's growth and prosperity. However, impediments that limit access to international markets, such as trade disputes, invariably arise within most trading relationships. Often these challenges are related to trade involving innovative products, such as those derived through biotechnology. DFAIT, through its various divisions and often in concert with other government departments and agencies, works to ensure Canadian biotech producers have the best possible access to foreign markets and that they receive fair treatment internationally.
The Technical Barriers and Regulations Division (EAS) within DFAIT's Trade Policy Bureau illustrates one of the ways the department supports Canadian biotechnology industries. EAS identifies international barriers to trade as they arise and works to reduce those barriers through negotiation, making representations in various international fora and organizations, and by pursuing outreach efforts that help build fair, transparent regulatory capacity in other countries.
The Trade Commissioner Service (TCS) is another area of DFAIT that promotes and supports the economic interests of Canada internationally by providing Canadian firms with business contacts, market information, local company and visit information, face-to-face briefings and troubleshooting services. TCS assists companies that have researched and selected their target markets, and can demonstrate their commitment to succeed in the global marketplace.
Finally, DFAIT's Science and Technology Division (TBR) contributes to strengthening Canada's biotechnology international presence by providing support to the Canadian biotechnology community, including the private sector, to identify foreign technology and potential financing (venture capital) partners.
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Contributions to the CBS
International technology and financing partnering
The Science and Technology Division organizes events focused on venture capital and technology partnering around the world in countries where there are complementary technologies and where foreign financing is available. In most cases, TBR partnering events take place in conjunction with major international industry conventions to provide added value to Canadian participants and to promote Canada's image at these world events. Since 2001, TBR has organized partnering meetings to help Canadian biotechnology companies and research organizations explore technology and financing partnership opportunities with targeted foreign delegations at the Biotechnology Industry Organization (BIO) annual convention and exhibition. Canada hosted BIO2002 in June of that year in Toronto. The Division also leads biotechnology venture financing and technology partnering missions to Europe and Asia, and organizes partnering seminars in collaboration with Canadian missions abroad. Canadian and foreign participants to such events pay their own way to attend.
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Canadian involvement in international organizations related to trade
Canada is actively involved in international organizations such as the World Trade Organization (WTO) and participates in WTO committees that preside over trade issues related to products of biotechnology. The WTO Agreement on Technical Barriers to Trade (TBT) defines the international rights and obligations of members with respect to the development and application of standardsrelated measures that affect trade. The Agreement is based on the principle that countries have the right to adopt and apply mandatory technical regulations, as long as these regulations do not restrict international trade more than is necessary, to achieve a legitimate objective. TBT-related measures are subject to WTO rights and obligations, including dispute settlement provisions. EAS, in concert with other DFAIT divisions and government departments, promotes wide acceptance of and adherence to the TBT Agreement with respect to trade in the products of biotechnology as well as the TBT Agreement's Code of Good Practice, which applies to voluntary standards.
The WTO Agreement on the Application of Sanitary and Phytosanitary Measures (the SPS Agreement) governs food safety and animal and plant health, including products of biotechnology. The Agreement stipulates that SPS measures must be based on scientific principles and scientific evidence, must be applied only to the extent necessary and must not result in unfair discrimination or disguised restrictions on trade. In force since 1995, the SPS Agreement established the Committee on Sanitary and Phytosanitary Measures (SPS Committee), which is responsible for the operation and implementation of the Agreement. The Committee generally meets three times a year. Here again, DFAIT works with other government departments to ensure Canada's representation and active participation in SPS Committee meetings.
Canada is playing a leading role in setting international standards for biotech foods and their labelling through the Codex Alimentarius Commission, established jointly by the Food and Agriculture Organization and the World Health Organization.
Canada chairs and participates in the Codex Committee on Food Labelling, which is developing guidance on the labelling of foods derived through biotechnology, and has chaired an international drafting group to provide further technical input on guidelines for the labelling of these foods. Through its participation in these committees, Canada is working to facilitate Canadian access to international markets which, in turn, fosters the development of Canadian biotech industries.
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Training in biotechnology for the Trade Commissioner Service
To support its ongoing effort to improve the Trade Commissioner Service, the Canadian Biotechnology Strategy provided the Market Support Division of DFAIT with funding to deliver a series of six courses entitled Capacity Building in Biotechnology. The training was for trade commissioners, business development officers, science and technology counsellors, policy analysts posted abroad at Canadian missions and officers from other government departments who focus on major issues influencing the success of international business development and partnerships in biotechnology. The courses, delivered across Canada from July 2000 to June 2002, were developed in partnership with Canadian biotechnology associations, including: AgWest; BioNova; BC Biotech; BioQuebec; and the Ottawa Life Sciences Council.
The intensive two-day courses covered topics such as intellectual property rights, including copyright, trade marks, trade secrets, patents, accessing, vetting and qualifying key interlocutors. This training has enabled officers to help Canadian biotechnology organizations, companies and firms requiring assistance to advance and maintain international business relationships.
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Early successes
Multilateral initiatives to reduce trade barriers
Under the WTO Technical Barriers to Trade (TBT) Agreement, DFAIT has lobbied hard for the removal of unnecessary or inappropriate regulatory, standards-based and conformity assessment-based trade barriers to maintain or enhance market access and lower costs to Canadian producers and exporters. Canada has raised concerns over other countries' proposals for unwarranted or unjustifiable barriers to products derived through biotechnology, as well as over mandatory requirements for non-product-related process and production method labelling of such products.
To assist the TBT Committee in addressing the labelling of biotech products, Canada has developed a framework for informal discussions which covers topics such as policy instruments for labelling, mandatory versus voluntary measures, harmonization and equivalency, and developing country considerations. The document can be found on the WTO Web site under its official document number G/TBT/W/174.
Canada also works to improve transparency, promote regulatory reform and good regulatory practice by WTO members, align or harmonize standards internationally and with trading partners and, if appropriate, negotiate mutual recognition agreements (MRAs) on conformity assessments. On this point, Canada has developed a policy approach to MRAs that assesses proposals on a case-by-case basis. The approach includes full consultation with federal and provincial regulatory and trade officials in their areas of jurisdiction as well as with stakeholders, including industry. This document is also available on the WTO Web site under document number G/TBT/W/167.
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Bilateral initiatives to reduce trade barriers
DFAIT represents Canadian business interests in making both formal and informal bilateral representations on issues related to trade in products of biotechnology. Canada has undertaken outreach efforts whereby authorities from other countries are invited to visit Canada to meet with government officials, including those involved in regulation, in order to better understand Canadian policy with respect to products of biotechnology. In doing so, it is hoped that the Canadian regulatory model for biotech products will be reflected in the regulatory approaches taken by our trading partners, thereby reducing trade impediments for Canadian producers.
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Biotechnology partnering
The department's Science and Technology Division received $50,000 in CBS funding through the Market Support Division (TCM) to develop and produce a biotechnology-partnering brochure when Canada hosted the BIO2002 convention and exhibition in June 2002. The funding enabled the Division to develop an effective tool to enhance international awareness of Canada's R&D strength in biotechnology and to facilitate foreign investments in Canada's biotechnology R&D through international partnerships. These international technology and financing partnerships are resulting in technology and product commercialization in this country, providing high value-added employment for Canadians.
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Positioning Canada's bioscience opportunities and capabilities
Identifying and capitalizing on Canada's competitive advantages - including a comparative analysis of innovative strategies and policies that support the industry's growth in major biotechnology centres around the world - are the objectives of initiatives being developed by the Trade Commissioner Service, with the support of CBS funding. The information gained will be compiled and made available to Canadian stakeholders to influence Canada's bioscience communications and marketing activities, including ways to raise awareness in target markets of Canada's comparative strengths and opportunities. The resulting communications and marketing activities will help raise the profile of, and better position, Canadian biotechnology companies in the world's most lucrative markets in advance of the thousands of new biotech products that will soon be on the market and the thousands more currently in the pipeline. This will help to ensure Canada stays ahead of the world's competition with the advent of new biotech products coming on-stream. It will also improve current product development in Canada by attracting and encouraging new partnerships, investment and future marketing opportunities.
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International leadership
Canada is an active participant in the ongoing work programs of the TBT Committee and was a full participant in the Third Triennial Review of the Implementation and Operation of the Agreement on Technical Barriers to Trade conducted in November 2003. The review provided Canada with an opportunity to work toward further implementation of the Agreement. Canada's participation facilitated increased clarification, transparency, and implementation of the various rights and obligations stipulated in the Agreement, which may reduce technical barriers to trade among Canada's trading partners and facilitate the flow of Canadian goods to other countries.
Canada succeeded in encouraging Committee members to address and strengthen their approaches in areas such as transparency in the application of the Agreement, to commit to conducting information exchanges between members on good regulatory practices, to develop a work programme with a view to improving and promoting a better understanding of members' conformity assessment systems and to continue work in the provision of technical assistance to developing countries. The full report of the Third Triennial Review is available at the WTO docsonline Web site (docsonline.wto.org) under its official document number G/TBT/13.
Over the last year, the Sanitary and Phytosanitary Measures (SPS) Committee has continued to focus its efforts on the implementation concerns of developing countries. In particular, the Committee has considered, as a priority, the implementation constraints facing developing countries, including accessing the special and differential (S&D) treatment provisions of the SPS Agreement. Canada tabled a proposal that would provide members with information concerning the provision of S&D treatment through the transparency obligations of the Agreement, thereby encouraging more extensive use of the S&D provisions. The Committee has also considered issues such as equivalence, transparency and technical assistance.
The SPS Committee is increasingly being used by Canada and other WTO members, including developing-country members, as a forum for raising bilateral issues. In 2002, WTO members raised more bilateral issues than ever before. Canada introduced 13 bilateral issues, including the European Union's moratorium on genetically modified organisms (GMOs) and China's regulations governing GMOs.
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International business development
Sectoral learning programs administered by the Marker Support Division of DFAIT, supported by the CBS, have greatly augmented the capacity of the Trade Commissioner Service and other personnel engaged in international trade to increase the number of Canadian biotechnology companies successfully exploring international business. Officers based in Canada and posted abroad have been trained to effectively troubleshoot on behalf of Canadian biotechnology interests, particularly in areas of prospective strategic alliances, intellectual property rights and the regulatory environment as it affects commercial and research institute relationships.
The programs have also increased the level of interdisciplinary expertise vis-a-vis all applications and component technologies of biotechnology. This has been accomplished by developing and facilitating module courses, ensuring information is available online, and arranging for key personnel to attend activities and events in biotechnology that will further result in the increased capacity and effectiveness of the Trade Commissioner Service.
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Heightened international awareness of Canada's strength in biotechnology
Many organizations in Canada, including government and industry, play a role in promoting Canadian bioscience capabilities. U.S. Business Development Division (NUB) determined that these partners could benefit from sharing information and working together to maximize assistance to the 400 or so biotech companies operating in Canada. It became apparent that common messaging and look in public outreach materials would be essential to "brand" Canada's biotech sector.
Under the leadership of NUB, a team was struck and became known as the Canada Bioscience Group. Its goal is to ensure that information about the sector looks and sounds alike, all of which contributes to a powerful, coherent and integrated marketing effort. The team has created a marketing strategy and information kit for trade commissioners to use in the U.S. marketplace to promote Canada's bioscience capabilities in the U.S. market.
The Group is linked by a password-protected extranet site, which houses the marketing kit. Partners are encouraged to use these shared material and messages when promoting Canadian capabilities. Messages are evergreen and updated regularly by partners to ensure currency, consistency and accuracy.
By organizing partnering events in Canada and targeted foreign countries, the department's Science and Technology Division has also raised the global profile of Canada's biotechnology strength and technology partnering opportunities. Several international collaboration agreements concluded between Canada's leading biotechnology organizations and their foreign counterparts are the result of leads generated at these international partnering events. In fact, many of these leads are still being developed by Canadian participants.