Mar 07 2025 22 mins 1
The spectre of trade wars looms as social media announced tariffs threaten to disrupt the Canada-US relationship, but a powerful alternative to the traditional tit-for-tat approach exists. Rather than punishing ourselves with counter-tariffs that make goods more expensive for Canadians, we could follow Brazil's remarkably successful strategy from 2010.
When faced with harmful US cotton subsidies, Brazil obtained WTO approval to suspend American intellectual property protections on pharmaceuticals, chemicals, and entertainment. The threat alone was so effective that the US capitulated, passing corrective legislation and paying compensation. This approach targeted America's post-industrial economy, where true value lies not in manufacturing but in patents, copyrights, and intellectual property.
Looking at our trade history, intellectual property protection forms the cornerstone of agreements from NAFTA to the 2020 USMCA. These agreements dramatically restricted Canada's generic drug industry, extended copyright terms to 75+ years, protected US semiconductor designs, and created digital IP frameworks that primarily benefit American companies. Since these protections exist because of the very agreements being violated through tariff threats, suspending them represents a logical and asymmetrical response.
The beauty of this approach is its win-win nature for Canada – consumers would save substantially on medications, technology, and entertainment while applying maximum pressure to US interests. When auto executives warned of catastrophic consequences from parts tariffs, Trump backed down within 24 hours. Imagine the lobbying pressure from every pharmaceutical, technology, and entertainment giant facing the loss of their international intellectual property protections. As our legal expert notes, this approach has proven effectiveness has legal standing through WTO processes, and would target "most of the US economy" – making it a strategic option Canada shouldn't overlook as trade tensions escalate.
Follow this link for a transcript of the show and links to the cases discussed.
