Abstract:
This study critically analyzes the historical role and influence of multinational
drug cotpOrations and multinational corporations in general; the u.s. government and
the Canadian state in negotiating the global recognition ofIntellectual Property Rights
(IPR) under GATT/NAFTA.
This process began in 1969 when the Liberal government, in response to high
prices for brand-name drugs amended the Patent Act to introduce compulsory licensing
by reducing monopoly protection from 20 to seven years. Although the financial
position ofthe multinational drug industry was not affected, it campaigned vigorously
to change the 1969 legislation. In 1987, the Patent Act was amended to extend
protection to 10 years as a condition for free trade talks with the u.s. Nonetheless, the
drug industry was not satisfied and accused Canada of providing a bad example to
other nations. Therefore, it continued to campaign for global recognition ofIPR laws
under GATT. Following the conclusion of the GATTI Trade-Related aspects of
Intellectual Property Rights agreement (TRIPS) in 1991, the multinational drug industry
and the American government, to the surprise of many, were still not satisfied and
sought to implement harsher conditions under NAFTA. The Progressive Conservative
government readily agreed without any objections or consideration for the social
consequences. As a result, Bill C-91 was introduced. It abandoned compulsory licenses
and was made retroactive from December 21, 1991.
It is the contention of this thesis that the economic survival of multinational
corporations on a global scale depends on the role and functions of the modem state.
Similarly, the existence of the state depends on the ideological-political and socioeconomic
assistance it gives to multinational corporations on a national and
international scale. This dialectical relation of the state and multinational corporations
is explored in our theoretical and historical analysis of their role in public policy.
