In a surprising move, Paul Martin, the Canadian Prime Minister-elect, has endorsed plans for the federal government to excuse poor countries from patent rules, as permitted under a new international agreement. This allows Canadian generic drug-makers to supply cheap medicines to developing countries undergoing health crises. The World Trade Organization (WTO) deal creates a legal loophole that allows the most desperate countries to override patents on expensive drugs and order cheaper copies from generic manufacturers, with patent holders receiving a small payment. In fact in 2000, Canadian generic pharmaceutical manufacturer Apotex offered to provide HIV/AIDS drugs to developing countries in sub-Saharan Africa at cost. Ultimately, this did not happen because Canadian patent law would not allow it. Canadian law protects patented medicines for 20 years, except for national distribution in emergencies. Eric Dagenais, director of patent policies for the Industry Ministry, said he would like to propose a bill in the next few weeks or months to the cabinet, which would allow Ottawa to force drug-makers in Canada to surrender their patents on AIDS drugs. Canada is the first G7/G8 nation to take such a step. Canada's research-based pharmaceutical companies will work with Ottawa to implement a WTO agreement to import cheaper drugs to developing nations, providing the countries can prove that they do not have the capacity to make the drugs themselves and that they are not going to sell the drugs on the black market.

This announcement follows on from progress made at the November 2001 international trade meetings in Doha, Qatar, when it was agreed that developing countries could import low-cost generic medicines in times of health crises. Many of the countries stricken with diseases such as HIV/AIDS do not have the domestic manufacturing capabilities to produce their own low-cost versions of the necessary drugs.