The World Trade Organization (WTO) creates new challenges for the Canadian
health care system, arguably one of the most "socialized" systems in the wo
rld today. In particular, the WTO's enhanced trade dispute resolution power
s, enforceable with sanctions, may make Canadian health care vulnerable to
corporate penetration, particularly in the pharmaceutical and private healt
h services delivery sectors. The Free Trade Agreement and its extension, th
e North American Free Trade Agreement, gave multinational pharmaceutical co
mpanies greater freedom in Canada at the expense of the Canadian generic dr
ug industry. Recent challenges by the WTO have continued this process, whic
h will limit the health care system's ability to control drug costs. And pr
essure is growing, through WTO's General Agreement on Trade in Services and
moves by the Alberta provincial government to privatize health care delive
ry, to open up the Canadian system to corporate penetration. New WTO agreem
ents will bring increasing pressure to privatize Canada's public health car
e system and limit government's ability to control pharmaceutical costs.