Agriculture Committee on April 1st, 2008

[Paul Steckle, Liberal, Huron—Bruce, ON]

Just as a brief follow-up on the whole issue of own-use importation, the product IVOMEC has been spoken about a number of times this morning. Given that the price differential is so great between Canada and the U.S., where is the problem? Is this a problem with the manufacturer in terms of how it prices to Canada and how it prices to the U.S., in terms of volume? What is the reason for this? Is it our people who want to profit from this product? Where is the problem? I think a lot of people would like to know. Or, maybe you don't know.

[Dr. Siddika Mithani]

I certainly don't know what the issue is, but I would imagine that the price differential is because there's a much bigger market in the U.S. than there is in Canada. One of our challenges is going to be how we get those generic companies to file submissions so we can have those same products at those same prices available here in Canada.

[The Chair, Conservative, James Bezan]

I think it's a generic ivermectin. It's not IVOMEC itself that people are buying. My brothers and I buy ours in the States because it is very affordable down there.

Are there any royalty issues or licensing issues, like patents being held by certain companies in Canada, that prevent the generics from registering here before they do in the U.S.?

[Dr. Siddika Mithani]

We're not aware of any sort of real patent issues. The fact that we do have a couple of generic ivermectins here in Canada begs the question as to why we cannot have more generic ivermectins. We have also spoken to the livestock producers in terms of what types of drugs are causing them the highest price differential and how we can move those strategies forward.

[The Chair, Conservative, James Bezan]

A couple of times today some of the committee members have mentioned the Canadian Animal Health Institute's study benchmarking the competitiveness of the Canadian animal health industry. In there, they're suggesting that 20% of the market now is being brought in through the personal use imports, and they made a recommendation to Health Canada to have that so-called loophole closed. I'm just wondering if you are following that recommendation or if you're going to be taking all sides of the argument in this issue, in determining future policy.

[Dr. Siddika Mithani]

We've obviously had an opportunity to discuss the IFAH report with the Canadian Animal Health Institute. We have set up a task force, as I have mentioned before, on personal use importation that includes the Canadian Cattlemen's Association, as well as CAHI, some provinces, and PMRA, to see whether there is any hope or strategy that we may use, based on some of the programs they have in place--for example, the GROU program.

So as we move forward in addressing the personal use importation issues, we will be looking at all sides. We've got everybody at the table, and we hope we can come to a consensus. Based on the recommendations they will provide, there will be lots more dialogue in how we move forward in restricting the personal use importation based on the fact that there are certainly potential safety issues Health Canada would be concerned about, but recognizing that the price differential is really an issue. With the kinds of process improvements we have—the elimination of backlog—I think time will tell as to how important personal use importation is going to be in the next year or so, as we have these process improvements.

[The Chair, Conservative, James Bezan]

One of the things PMRA is doing in its harmonization is looking at NAFTA labels. Are you considering that as well?

[Dr. Siddika Mithani]

We have not had the opportunity to do any joint reviews because of our backlog. Once we clear the backlog, there will be the opportunity to look at NAFTA labels, to look at harmonized labels in the future. So we are very excited about all these other strategies that we can bring in once we eliminate the backlog.

[The Chair, Conservative, James Bezan]

As a cattle producer, I can tell you I'm excited about the future and you guys really using your ability to reduce this backlog and have this harmonization. I think that is critical. But just don't throw out the baby with the bathwater, with the personal use imports, because one thing that does bring is true competition and making sure we do have that price discipline in the market because of the competition from the U.S. lower-priced products. The only way we can achieve that is with those imports and always having that ability to use them. I'm not sure that PMRA has completely bought that argument yet, and I'm hoping you will.

I don't see any other questions coming from the floor. Without any, I want to thank you very much for taking your time today to appear before our committee and share this briefing.

With that, we are adjourned.