As free trade talks with the European Union reach the endgame, Ottawa is signalling it is prepared to give the Europeans at least part of what they asked for on drug patents - a move that could cost Canadians up to $900 million a year.
With negotiations at the bureaucratic level nearing closure, International Trade Minister Ed Fast will meet his European counterpart in Brussels next week, taking the discussions to the next level.
He and Agriculture Minister Gerry Ritz hope to hammer out the most contentious details of the agreement in hopes of bringing it to a close in the coming weeks - although both Canada and Europe are indicating that discussions will likely drag on into the new year.
"The things that are really difficult are being saved till the end," said John Weekes, a trade consultant who was the chief negotiator for NAFTA and who is now advising the generic drug industry.
"The presence of the ministers will create a different dynamic."
At the same time, the government has launched a public relations blitz in Canada designed to convince Canadians that the free-trade deal with Europe will mean better sales of "iconic" Canadian goods such as maple syrup and Tilley hats, and bring in benefits to the tune of $1,000 extra per family per year. But the PR exercise is not going anywhere near the intellectual property issue that has clouded the talks from Day 1.
Government and industry sources say Fast is willing to give the EU somewhat stiffer patent protection for brand-name pharmaceuticals, despite intense pressure from the generic drug industry in Canada and health care advocates as well as several provincial governments who don't want to see their drug costs rise.
But government officials are also warning that it's not over, since the final rounds of any trade negotiation are full of give and take - and drug patents are right in the centre of that dynamic.
Isabelle Robillard, the spokeswoman for Canada's Research-based Pharmaceutical Companies, refused to comment while the talks are still ongoing, although sources say the brand-name industry is quietly celebrating victory.
The generic drug industry, meanwhile, is not admitting defeat.
"We're still hopeful," said Jim Keon, president of the Canadian Generic Pharmaceutical Association. "We haven't been told of any final decision."
