With an more and more explosive loss leader who has consistently stretched out the hand of friendship to previously considered foe while discount long - standing friend , a trade state of war between the US and its closest North American neighbor is not out of the question .

One Ottawa University - based professor of law and medicine , Amir Attaran , nominate how to come to the US where it offend – severely – in anop - erectile dysfunction in Canadian magazine Macleansback in June that he claims is now being considered by officials if a likely trade state of war scenario looks potential to escalate .

His suggestion ? Expropriate pharmaceutical patents . It ’s simple , and maven really , if you want to hit your opponent right on where it costs .

This all began back in June when the US imposed trade duty on Canadian steel and Al for “ national surety ” , despite suggest it would be nontaxable from the US ’ new swap practice of law . Canada responded by not only enforce the same tariffs on the same goods , but extending it to include a list of traditionally American - made point such as pizza , orange juice , whiskey , and US - made maple syrup . ( Theofficial listis long and slightly baffling , including mattress , felt pen , jam , fungicide , and tablecloths . )

So , what does “ expropriate pharmaceutical patents ” mean ? It means that any intellectual property rights to patented pharmaceutical drug in the US wo n’t put on in Canada .

“ With distinctive drug prices originate an norm   of   12 per centum per year , and   with   certain specialty drugs priced over $ 500,000 , see the correct pharmaceutic patents is like having several gold mine , ” Attaranwrote .

Six of the cosmos ’s top 10 pharmaceutic ship’s company are American , and they buttonhole , dollar bill for dollar , more than the banking , gondola , and defense industries meld . But this program would n’t just take out Canada from the buyer ’s market . expropriate US pharmaceutical patent of invention would allow Canadian chemist’s shop to legally simulate patented drugs control by US companies .

There is a precedent for this – the World Trade Organization enlisted new “ compulsory licensing ” laws to do just this during the 1990s-2005 HIV / AIDS crisis – but this has n’t been legal in Canada since the sign language of the 1988   Canada - US Free Trade Agreement , the forerunner ofNAFTA .

If this became legal again , it could even give Canadian companies the right hand not just to copy and trade but to export , too .

The benefits for Canada are obvious if this die ahead : growth for its pharmaceutical manufacture , low-toned prices that will be passed on to Canadian household , billion of clam pull through for the publicly funded Medicare , and , of course , billions of one dollar bill lose and a break on the monopoly of the US pharmaceutical industry .

And , Attaran point out , once Canada shows the world how it ’s done , other countries will follow .

So , could this really go ahead ? Canada official are in Washington this hebdomad to resume NAFTA negotiations , to which the US has commit an October 1 deadline .

“ Canadian official are aware of and studying the proposal in case the United States decides to visit a major retaliation on Canada , ” Attaran toldYahoo Canada Finance . “ I ’m positive it ’s being considered . ”

We ’ll just have to wait and see .

[ H / T : Yahoo Finance ]