Expensive Proposed Changes to Export-Import

Discussion Paper by Shawn Buckley

Published July 2021

Once again, Health Canada has found a new strategy to impose rent seeking on Canadian natural health product (NHP) manufacturers, importers, and sellers. There is no benefit to any Canadian or to Canadian business as a result of the newly proposed changes to exporting and importing. These changes can only harm businesses in the Canadian NHP industry and Canadians’ individual access to the supplements they rely on.

Health Canada appears determined to cripple Canadian NHP businesses via astronomical and unnecessary licensing, inspection, and other regulatory fees that will make it next to impossible for small or medium sized NHP businesses to continue to operate in Canada – especially once the Self-Care Framework is fully implemented.

Shawn Buckley’s discussion paper on expensive proposed changes to Exporting and Importing in Canada under The Food And Drug Act and the expected impact on natural health products (NHPs) cost and availability offers a deeper explanation.

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Export Import Discussion Paper Web 500 x 500 Aug 2021

Action Needed Now

We urge you to stay informed about these changes and their impact on your health and your right to access natural health products. Download and read this important Discussion Paper today.

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Excerpts From The Discussion Paper

“In Health Canada’s Regulatory Impact Statement, they estimate that the yearly cost on a ten-year average will be $29,955 a year for a company exporting non-sterile drugs. In my opinion, Health Canada’s estimate is low.”
“My law firm engages in Health Canada licensing and the most charitable comment I can make is that Health Canada’s estimate has no basis in reality. It would be just as silly to say BMW sells new cars for $694.”
“Rent seeking is a term used by economists to describe an expensive regulatory environment that eliminates small and medium sized firms because the regulatory cost and burden is too high. Rent seeking is supported by large firms as it eliminates much of the competition. Rent seeking is supported by the regulatory agency which gets to expand because it can charge high fees for licensing, inspections and administrative penalties. Health Canada is claiming these changes are needed to adhere to trade agreements etc. In my opinion, this is really about rent seeking. The proposed export changes are yet another move to eliminate small and medium sized businesses.”

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