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Today’s Pickup: Canada can’t supply Trump’s drug plan

U.S. drug import plan would tax Canadian medication supplies, which already face shortages.

Photo: Shutterstock

Good day,

The Trump administration plan to allow imports of cheaper prescription drugs from Canada has a serious supply-side problem.

Canada’s drug supply could run out within six months if 20 percent of U.S. prescriptions came from north of the border, according to a 2018 study by Marv Shepherd, a professor emeritus at the University of Texas-Austin’s pharmacy college. 

In the event of the U.S. legalizing drug imports from Canada, “The threat to the Canadian drug supply is real. Drug shortages will undoubtedly occur,” Shepherd wrote.


Shortages of medications are already common in Canada. A 2018 survey of Canadian pharmacists found that 67 percent reported dealing with shortages daily or multiple times a day.

Not surprisingly, the drug import plan hasn’t gone over well with Canadians. With federal elections coming in October, it seems unlikely that the government will get on board with this proposal as well.

Did you know?

Cargo theft dropped by 14 percent in the U.S. and Canada during the second quarter of 2019, according to CargoNet.

Quotable:

“Cartel conduct, such as that engaged in by K-Line, not only cheats consumers and other businesses through inflated prices and costs, but also restricts healthy economic growth and discourages innovation.”


Australian Competition and Consumer Commission on automotive carrier Kawasaki Kisen Kaisha (K-Line) being convicted of being in a criminal cartel

In other news:

U.S. merchandise trade deficit with China hits five-month high

The U.S. trade deficit with China for merchandise rose slightly in June to $30.2 billion. (Bloomberg)

Amazon drivers accused in theft ring that netted millions

Two Amazon delivery drivers were involved in a Washington state theft ring that involved millions of dollars of goods, according to federal court documents. (USA Today)

Alibaba to get controlling stake in logistics company

Alibaba will pay $1.4 billion to secure a controlling stake in the Chinese logistics firm STO Express. (Tech Node)

Trucker who refused to pay toll arrested after 20-mile chase


West Virginia state police arrested an Alabama truck driver, saying he led officers on a 20-mile pursuit after refusing to pay a toll. (Bluefield Daily Telegraph)

Virginia police could get tests that distinguish between pot and hemp

Police in Virginia may get up to 15,000 kits that tell the difference between marijuana products and legal products. (NBC4)

Final thoughts: 

Canada’s own drug shortages often involve generics, while the cost disparity between U.S. and Canadian drugs is most pronounced with brand-name medications. A key reason – the Canadian government has a small agency dedicated to reviewing prices for medications without generic equivalents

While there’s little enthusiasm for President Trump’s drug import plan among Canadians, perhaps there’s room to leverage U.S. demand for cheaper medications with Canada’s need for more stable supplies. 

Hammer down everyone!

Nate Tabak

Nate Tabak is a Toronto-based journalist and producer who covers cybersecurity and cross-border trucking and logistics for FreightWaves. He spent seven years reporting stories in the Balkans and Eastern Europe as a reporter, producer and editor based in Kosovo. He previously worked at newspapers in the San Francisco Bay Area, including the San Jose Mercury News. He graduated from UC Berkeley, where he studied the history of American policing. Contact Nate at [email protected].