Dive Brief:

• The European Union and Canada recently announced the Comprehensive Economic and Trade Agreement would be applied provisionally starting Sept. 21, 2017. 
• The landmark deal promises great benefits such as cutting 99% of EU tariffs on Canadian products. Signed last year, the deal's implementation had been held up over continuing disputes regarding pharmaceutical patents and cheese, according to Canada's BNN.
• Last week, Canada's Department of Industry addressed this issue, releasing an amendment to its Patent Act that would provide "innovators" the right to appeal generic versions of drugs based on their patents even if the drug had been approved by regulators.

Dive Insight:

Not all trade deals target tariffs. In fact, some of the most consequential provisions within agreements focus on more obscure issues, such as how to enforce drug patents across borders.

At least that was the case for the much-acclaimed CETA, whose implementation has been delayed for months over challenges to reforming Canada's drug patent laws. At issue were drug companies who had invested heavily in R&D to develop new drugs, only to lose market share to generics as their patents were dismissed by courts over timing concerns. In addition to better tariff rates, with CETA, pharmaceutical companies won a greater legal right to fight for their products' patent rights.

The battle over drug patents, which Lexology reports had long been top of mind for the pharmaceutical industry, shows how trade deals — with their give-and-take nature — can have large impacts on industries and inspire countries to change their own laws and regulations, albeit with some delays.

As supply chain managers across sectors turn their eyes toward NAFTA, South Korea or other pending trade deals, attention to detail is key.