The disparity, from what I've read and heard, is between the various international standards and perceptions of intellectual property and its enforcement. The big Pharm companies give the franchise away to the Canadian, Asian and Euros because they want to protect themselves from the rote reverse engineering theft that can be done with most ANY drug or technology that is science based. They want to protect their brand franchise here, in their biggest markets. So we Americans pay while the rest of the world mounts us again.
Why wouldn't Merck, Microsoft or Paramount want to protect their risk investments? They're inventing something out of nothing, for every success they get return, they have copious investments that fail. They need to maximize their winners, or investment will dry up. But we pay so the Canucks can not only avoid paying for military, but for any intellectual property assets in pharmaceuticals, bioengineering, technology ... etc etc. It's wrong.
It's the World that should be sanctioned for that theft, its not Americans that should pay a premium as ransom to the dismal Canucks or the mortal enemy Chinese.
Let's let Bob and Doug McKenzie invent something for a change, and we'll steal it. I consider this kind of theft an economic act of war. And, our pols are playing right into it. If we start allowing our HUGE Federal buying pools to pay cut rate prices from Canada and Mexico - Upjohn, Merck, Baxter etc will just stop inventing stuff.
So we need to cross subsidize the perps, or they will steal the drug company patents eh? Sounds like extortion to me. I don't agree with the scenario, but if it is, bring it on! This cannot stand. It is repulsive.