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How Canadian Pharmacy Dominated The US Market The Canadian pharmacy industry emerged as a threat to the US pharmaceutical sector as it captured a significant share of the American market. But, it was not always like this. In fact, the picture was quite the opposite in the early 1990s, when cross-border trade between the US and its North American neighbours (Canada and Mexico) was made duty free by the North American Free Trade Agreement (NAFTA). NAFTA: The Roots of the Rise of Canadian Pharmacy The US industry gained substantially from this agreement as it helped the Americans to reduce their expenditure and increase their revenues. Not only could they outsource the manufacturing part of production to Canada or Mexico, they even found a market for the finished products in these countries. Till then, Europe was America's leading competitor in the pharmaceutical industry. However, Canadian pharmacy industry gradually realised that the one of the main reasons for the US-based pharmacies doing great business was the research and development provided by Canada. Canadian pharmacy firms woke up to this fact and started capitalizing on the cheap R&D facility at home....more
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