OTTAWA — Ottawa proposes law to get cheap drugs into hands of world's poorest people

Medicines to ease pain suffered by millions of victims of AIDS, tuberculosis and other diseases could flow by next year under a new federal law aimed at getting low-cost drugs to the world's poorest countries.

A bill introduced Thursday makes Canada the first country to take steps to offer low-cost medications to poor nations hit by epidemics such as malaria.

The amendments to Canada's Patent Act and the Food and Drug Act come after changes to global trade rules cleared the way for poor countries to import cheap copies of patented drugs for treatment of killer diseases.

"(This) will allow treatment for millions of poor people suffering from terrible diseases," said Trade Minister Pierre Pettigrew, one of several cabinet ministers involved in the new legislation.

"I think we will become a model among other developed countries ... this message will be heard around the world."

Although the House is expected to break Friday -- possibly for several weeks as Paul Martin replaces retiring Prime Minister Jean Chretien -- ministers involved in the new bill said that won't stop their work.

Nor do they fear the bill could be stalled by the new prime minister.

Martin, who becomes Liberal leader Nov. 15, has spoken forcefully for the initiative.

Work on regulations that go with the legislation can now begin and will continue so the package could take effect some time early next year, said Industry Minister Allan Rock.

He estimated it will take "two to three months" to get the legislation passed once the House resumes, possibly in January or February.

And if brand name and generic drug manufacturers begin to compete to provide the cheap drugs, it could eventually help drive down prices for poor countries, added Rock.

"We're providing a broader market of suppliers and perhaps competition among them, and bringing the prices down."

Under the new law, poor countries could approach Canadian generic drug manufacturers and negotiate a deal to buy certain drugs that will be regulated by Health Canada.

The drugs will be marked so they can be traced if thieves try to resell them on the black market.

Once a deal is struck, the brand-named drug company which holds the patent on that medicine would have 30 days to match the deal -- a clause known as the right of first refusal.

Otherwise, it would get a two per cent royalty on the deal.

The first refusal clause worries generic manufacturers, who say they fear they may negotiate deals with countries only to be squeezed out the big, brand-name drug producers.

If that becomes common, generic drug makers may quit trying entirely, said Jim Keon, president of the Canadian Generic Pharmaceutical Association.

"If the brands want to reduce their prices for developing countries they should just do it," said Keon.

Major drug companies want to be part of the humanitarian effort, says a spokesman for their lobby group.

"We see ourselves as playing the role of good corporate citizens ... we have a huge obligation because we have the medicines," said Murray Elston, president of Canada's Research-Based Pharmaceutical Companies.

Some aid organizations also worry about the right of first refusal.

They also fear it could prove difficult to try to expand the list of 48 drugs now covered by the legislation.

Still, Oxfam Canada welcomed the new law.

"The proposed mechanism to suspend patents could become a major breakthrough in the fight against disease," said Rieky Stuart, executive director of Oxfam Canada.