An Act to amend the Food and Drugs Act and the Food and Drug Regulations (drug export restrictions)

This bill was last introduced in the 39th Parliament, 2nd Session, which ended in September 2008.

This bill was previously introduced in the 39th Parliament, 1st Session.

Sponsor

Carolyn Bennett  Liberal

Introduced as a private member’s bill. (These don’t often become law.)

Status

Defeated, as of Nov. 28, 2007
(This bill did not become law.)

Summary

This is from the published bill.

This enactment places certain restrictions on the export of drugs described in Schedules D and F of the Food and Drugs Act.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

Nov. 28, 2007 Failed That the Bill be now read a second time and referred to the Standing Committee on Health.

Food and Drugs ActPrivate Members' Business

November 27th, 2007 / 6 p.m.


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Conservative

Joy Smith Conservative Kildonan—St. Paul, MB

Mr. Speaker, as my colleague, the member for Selkirk—Interlake, pointed out, hopefully by now several U.S. drug importation bills have come and gone. Bills on drug importation do not have a great life expectancy.

We have been hearing about bulk importation of drugs from our neighbour south of the border for more than five years now. During that period, many such bills have been introduced, one after another, and none came close to being adopted. In fact, they all died. They died because they were poisoned by members of Congress. They died because they became unpopular. They died because they were not workable. Why? Because importing drugs manufactured for other markets is simply not the solution.

Again today we see concerned U.S. health care providers commenting in the media. They raise their voices because the harsh reality of pricey prescription drugs in the U.S. is the major reason why people do not take their medication as prescribed, even forcing some people to choose between their medicines and other necessities.

The solution they propose is to control and reduce drug prices by involving Congress and federal agencies. They are not proposing to import drugs from foreign markets. In fact, they are openly and bluntly opposing such action.

Some hon. members present here today remain of the position that the U.S. will imminently open its border to cheaper drugs from other markets. Frankly, I do not understand how they are arriving at such a conclusion.

There is no doubt that Canadians must continue to have access to the prescription drugs they require. The government is committed to the health and safety of Canadians, including protecting an adequate supply of prescription drugs. However, I fail to see how spending taxpayer money to create unneeded laws to address purely hypothetical scenarios would serve that end. Should the time when the government would need to take action, we would want a measured and balanced approach to protecting our drug supply.

Bill C-378 is underdeveloped. Its non-measured, broad-brush approach raises fundamental objections. These are substantive in terms of trade law obligations and procedural in terms of regulation-making processes.

By contrast, the leading U.S. bill to legalize drug imports appears to assiduously cover the waterfront, in terms of administrative details.

I know hon. members are aware that it is most unusual to seek to directly amend regulations in Parliament, as Bill C-378 would do. Such an approach would bypass the Canada Gazette, related consultations and other review processes for regulations.

However, more important, Bill C-378 would not provide any tools for implementation and, worse, would not provide any ministerial discretion to ensure that any government response would be proportionate to the risk.

The member for St. Paul's has been talking about the Tamiflu situation of 2005, when Internet pharmacies were promoting and selling this drug to patients outside of Canada. I am deeply confused as to why this past situation is being offered as one example for moving forward with Bill C-378. I am confused because C-378 would still allow Internet pharmacies to sell drugs to the U.S. It would allow for truckloads of drugs to cross the border, even should shortages occur in Canada.

In short, the bill would prohibit exports and then would exempt most of the exports it purports to prohibit.

It is clear that Bill C-378 would not meet its stated goal. We would find ourselves having to come back in the House to discuss yet another bill, one that would be measured, one that would be consistent, one that would be effective at protecting our drug supply, one that would be carefully crafted knowing the final form of a U.S. bill, not one based on uncertain and ever changing U.S. House and Senate proposals about drug importation.

Canadians have said that they were concerned about cross-border drug sales, but they would be even more concerned with having Bill C-378 as the government's response.

Supporting the bill is not about standing up for Canadians.

Again, I want to reiterate and underscore that the government is committed to effectively monitoring and assessing potential risks to our drug supply associated with cross-border drug sales.

However, it is important not to overstate those risks and it is premature to introduce or pursue new legislation to restrict drug exports when there is no existing threat to the Canadian drug supply.

Real obstacles to the adoption of an effective U.S. drug importation bill remain, particularly the known objections of President Bush and many republican legislators. However, even if the U.S. were to adopt the current leading drug importation bill, its provisions would not allow bulk imports to start until one year had passed, providing the necessary window for this government to develop a measured and relevant approach to protecting our drug supply.

The U.S. bill also contains an extensive oversight regime, including inspections of exporting facilities that would be expected to limit and/or slow the uptake of its enabling provisions. Cost recovery from exporters and importers would also have an impact on the potential cost savings to consumers.

However, what is important to understand is that the drug importation proposal is not at the forefront of discussions in the U.S. It is being used solely as a lever to bring U.S. drug manufacturers to the negotiation table to lower U.S. drug prices.

The real leading proposal is to allow the U.S. medicare program to negotiate drug prices directly with manufacturers, which it is currently prohibited from doing. We know and the U.S. Congress knows that the issue the U.S. health care system is facing is high drug prices.

In summation, we have been hearing for years about drug import proposals in the U.S., but none survived. What we see and what we hear today is a continuing debate about high drug prices in the U.S. and this is a situation that the U.S. will need to resolve within its borders.

Candidly, there is no reason for spending more of the valuable time of hon. members to discuss a risk that does not exist and, worse, to discuss a bill that would not even protect our drug supply, even if there were a risk.

The interest of the member for St. Paul's on this issue is very much appreciated and noted, but for the reasons outlined, the government cannot support Bill C-378.

Food and Drugs ActPrivate Members' Business

November 27th, 2007 / 6:10 p.m.


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The Acting Speaker Andrew Scheer

I recognize the hon. member for St. Paul's for her five minute right of reply.

Food and Drugs ActPrivate Members' Business

November 27th, 2007 / 6:10 p.m.


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Liberal

Carolyn Bennett Liberal St. Paul's, ON

Mr. Speaker, I am pleased to wrap up debate on Bill C-378, An Act to amend the Food and Drugs Act and the Food and Drug Regulations (drug export restrictions).

It is a bit surprising to hear my Conservative colleagues use words like “unlikely” and “not emergent” when the bill is about prevention and giving the minister the tools he needs in the event of a problem, particularly as we are in flu season right now.

Members will recall how two years ago, when one of the batches of American flu vaccines did not work, we ended up with all of our supplies here in Canada at risk. Particularly, our neighbouring states, the governors and the public health agencies there would have been able, without these tools, to wholesale import vaccines to their states.

I ask my colleagues here in the House to support Bill C-378. This bill is merely aimed at giving the Minister of Health an ability to control the cross-border trade in prescription drugs and vaccines. As has been said, this is only one small step in terms of being able to control some of the Internet and walking trade, in terms of individuals, that the former minister of health pointed out.

The bill would make it an offence under the Food and Drugs Act to export prescription drugs in prohibited circumstances. By amending the Food and Drugs Act, the legislation will protect Canadians.

Canada, as we have said many times, cannot be America's discount drug store. Canada needs to protect itself from the dramatic expansion of importation by the U.S. of drugs intended for our patients.

The prospect of the U.S. legalizing large-scale purchases from our domestic supply is real. The threat to Canada's drug supply increased on January 10, 2007, when the bipartisan group of U.S. senate and house members introduced the critical drug importation legislation. U.S. Senators Dorgan and Snowe, and Representatives Emerson and Emanuel indicated the new pharmaceutical market access and drug safety act had support from more than 30 groups, including AARP, Families USA and unfortunately, the support of most of the presidential candidates.

The group's news release added that the legislation would allow individuals to directly order medications from outside the U.S., including from Canadian pharmacies.

On January 10, U.S. Senator David Vitter, with the former minister of health, pointed out that his main objective was to undermine and destroy the drug pricing regime here in Canada. He reintroduced his comprehensive prescription drug reimportation legislation, the pharmaceutical market access act, which is similar to the legislation introduced in the house of representatives on the same day.

On October 31, 2007, the U.S. senate adopted Senator Vitter's drug reimportation amendment to the U.S. senate labour, health and human services and education department appropriations bill. In addition to foot traffic, Vitter's amendment would also allow mail order and Internet importation from Canada. The language was stripped from the conference report, but the conference report was vetoed. Next steps and timing remain uncertain.

In July of this year Senator Vitter introduced similar amendments to the homeland security appropriations bill that would allow personal importation for Canada. In December, conferees will meet to discuss the different house, with no amendment, and senate, with amendment proposals.

When I was in Washington, it was very clear they are not going to let this go away. These members of Congress and the senate are very keen to do the job of allowing cheap drugs from Canada.

These legislative proposals pose an imminent and serious threat to the security and integrity of Canada's drug supply and a genuine threat to the health of Canadians. Of equal importance, this legislation represents a threat to American patients by allowing relinquishment of necessary community based medication monitoring and management, and increasing risks from the potential of counterfeit drugs that the WHO is very worried about.

Allowing bulk prescription drug imports would not significantly reduce U.S. prescription prices for very long. A recent University of Texas study concluded, based on the worse case scenario, that Canada's stocks of prescription drugs would amount to a 38 day supply for the United States assuming all U.S. medications were Canadian sourced.

Once U.S. demand depletes, Canadian stock prices will almost certainly rise, narrowing or possibly even eliminating the difference between U.S. and Canadian prices. The issue of bulk exports--

Food and Drugs ActPrivate Members' Business

November 27th, 2007 / 6:15 p.m.


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The Acting Speaker Andrew Scheer

Unfortunately, the hon. member's five minutes are up.

The question is on the motion. Is it the pleasure of the House to adopt the motion?

Food and Drugs ActPrivate Members' Business

November 27th, 2007 / 6:15 p.m.


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Some hon. members

Agreed.

No.

Food and Drugs ActPrivate Members' Business

November 27th, 2007 / 6:15 p.m.


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The Acting Speaker Andrew Scheer

All those in favour of the motion will please say yea.

Food and Drugs ActPrivate Members' Business

November 27th, 2007 / 6:15 p.m.


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Some hon. members

Yea.

Food and Drugs ActPrivate Members' Business

November 27th, 2007 / 6:15 p.m.


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The Acting Speaker Andrew Scheer

All those opposed will please say nay.

Food and Drugs ActPrivate Members' Business

November 27th, 2007 / 6:15 p.m.


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Some hon. members

Nay.

Food and Drugs ActPrivate Members' Business

November 27th, 2007 / 6:15 p.m.


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The Acting Speaker Andrew Scheer

In my opinion the nays have it.

And five or more members having risen:

Pursuant to Standing Order 93, the division stands deferred until Wednesday, November 28 immediately before the time provided for private members' business.

Food and Drugs ActPrivate Members' Business

November 27th, 2007 / 6:15 p.m.


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Conservative

James Bezan Conservative Selkirk—Interlake, MB

Mr. Speaker, I urge you to see the clock at 6:30.

Food and Drugs ActPrivate Members' Business

November 27th, 2007 / 6:15 p.m.


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The Acting Speaker Andrew Scheer

Is that agreed?

Food and Drugs ActPrivate Members' Business

November 27th, 2007 / 6:15 p.m.


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Some hon. members

Agreed.

The House resumed from November 27 consideration of the motion that Bill C-378, An Act to amend the Food and Drugs Act and the Food and Drug Regulations (drug export restrictions), be read the second time and referred to a committee.

Food and Drugs ActPrivate Members' Business

November 28th, 2007 / 6:10 p.m.


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The Deputy Speaker Bill Blaikie

The House will now proceed to the taking of the deferred recorded division on the motion at the second reading stage of Bill C-378, under private members' business.