Terry Creighton, President, Canadian Pharmaceutical Manufacturers and Exporters Alliance (CPMEA)
I recently attended a National Security Summit where, over the course of three days, we heard fascinating presentations from senior military officials from the U.S. and numerous allied nations on the future of combat, asymmetric warfare and the speed of technological innovation in drone and autonomous weaponry. As captivating as these topics were, what really grasped my attention was the “weaponization of medicines” by adversaries as a military and security threat in the same category as cyber-attacks and space-based warfare.
Coincidentally, on the last day of the Summit, the Supreme Court decision on the IEEPA tariffs was released and we gathered around our devices to watch how the Administration would respond and threaten to keep tariffs in place using other trade measures such as Section 232 and Section 301.
This is very real to us in Canada’s pharmaceutical manufacturing sector. Since May 2025 when the U.S. launched a Section 232 Investigation into Trade in Pharmaceuticals, Canadian pharmaceutical exporters have been anxiously waiting for its publication. Despite assurances the 232 would likely include exemptions for generic and biosimilar medicines, our relief has now been displaced by worry that the rejection of IEEPA tariffs will embolden the Administration to strengthen its national security focus and use its 232 delegated authority to hit hard. The U.S. Administration clearly considers reshoring of domestic pharmaceutical production as vital for its national security and defence.
All of this is highly relevant here in Canada as the Standing Committee on Health holds an upcoming Hearing to examine Canada’s pharmaceutical sovereignty and develop recommendations for how Canada can best promote pharmaceutical production. As it stands today, Canadians are equally reliant on imported medicines from foreign sources and extremely vulnerable to geopolitical events. Oh yes, and let’s not forget the huge impact of the pandemic on pharmaceutical supply chains, medicines shortages, and panic buying.
Canada’s pharmaceutical manufacturers need to be seen as the strategic national assets they are. The Canadian Pharmaceutical Manufacturers and Exporters Alliance represents companies operating production facilities in Canada that collectively supply 30 percent of all prescriptions Canadians rely on every day.
Pharmaceutical sovereignty means ensuring reliable access to essential medicines produced here at home. It means reducing vulnerability to trade disputes, export restrictions and global supply chain disruptions. Drug shortages remain a persistent concern in Canada, particularly for generic medicines that operate on thin margins and depend on complex international supply chains. When production is concentrated offshore, disruptions quickly reach Canadian hospitals and pharmacies.
Other countries recognize this risk and are acting decisively. The United States has introduced aggressive measures to reshore pharmaceutical production and incentivize domestic manufacturing. The European Union is advancing similar industrial policies. These governments understand that pharmaceutical manufacturing is a national security imperative.
Canada must respond with equal resolve.
The federal government has already identified biomanufacturing as a strategic sector essential to protecting Canada’s sovereignty and economic resilience. That recognition must now translate into policies that strengthen domestic pharmaceutical production.
Canada has also recognized the national security imperative of domestic production of medicines as part of our National Defense Industrial Strategy which promises investments in the production of medical countermeasures and stockpiling to ensure access to essential medicines here at home. Canada’s domestic drug manufacturers are ready to participate in Canada’s defence.
To secure Canada’s pharmaceutical sovereignty, CPMEA has advanced a Five-Point Action Plan for Canadian Domestic Pharmaceutical Production:
- Canada-First procurement. Federal drug programs and public plans should prioritize medicines manufactured in Canada. Even directing a portion of public spending toward Canadian-made medicines would create stable demand and support long-term investment.
- Priority regulatory review for Canadian producers. A dedicated pathway for domestic manufacturers would incentivize production in Canada while accelerating access to essential medicines.
- Competitive tax policy. Pharmaceutical manufacturing is capital-intensive. Canada’s tax framework must support investment in facilities, equipment and workforce development.
- Under Canada’s Defence Industrial Strategy, investments in the production of medical countermeasures and stockpiling to ensure access to essential medicines. Access to pharmaceuticals can be weaponized and supply disrupted by geopolitical events. Domestic manufacturing must be treated as critical infrastructure within national security and defence planning.
- Strategic trade alliances with trusted partners to strengthen supply chain cooperation while ensuring Canada maintains robust domestic capacity.
These measures are not about protectionism. They are about preparedness and resilience. Domestic producers provide oversight, transparency and responsiveness that offshore supply chains cannot match.
The Standing Committee on Health’s study of pharmaceutical sovereignty is an opportunity to act with foresight. Canada has the industrial base, skilled workforce and regulatory expertise to safeguard its pharmaceutical future. What is required now is policy alignment that recognizes domestic pharmaceutical production as essential infrastructure.
The time to strengthen Canada’s domestic pharmaceutical manufacturing capacity is now.
Learn more at www.cpmea.ca
