The relationship between patent and competition is rather complex. Whereas both sets of rules contribute to the same objective, i.e. consumer welfare and economic growth, their means collide. Patent laws create and protect monopolies while competition laws seek to limit their influence or even oppose their occurrence. However, since technological development is a financially risky process, it needs to be secured through a strong rewarding monopoly. Neo-classical theory has been so far the cornerstone of competition law. It is driven by a view of the market where price equilibrium and market atomicity constitute the main elements of allocative efficiency. But it promotes a rather static view of the market which neglects the fundamental aspects of technology-driven markets in the modern economy. Therefore we need to curb the role of the mainstream economic postulates by taking into account adequate theories in order to reflect modern innovation and technological diffusion onto the markets.

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In 1994, the members of the World Trade Organisation (WTO) adopted the Agreement on Trade-Related Aspects of Intellectual Property (the "TRIPs Agreement") and thus committed themselves to respect certain standards for intellectual property protection. This thesis studies the scope of the standards for patent protection and their impact upon trade in medicines. The first part addresses the international dimension of the issue and explains how international trade in medicines can contribute to enhancing the level of global welfare. The first chapter argues that in order to fulfil this latter objective legislation relating to patents must be adapted to the economic and social situation of countries. The second chapter demonstrates that such adaptation is not only allowed, but is indeed encouraged by the provisions of the TRIPS Agreement. The second part of this thesis addresses the issue from a Canadian perspective, and discusses the way Canadian patent provisions applying to pharmaceuticals should be drafted so as to allow Canada to participate in---and to benefit from---international trade in medicines. Thus, I first analyse the factual, political, and legislative factors that influence the Canadian pharmaceutical industry. I then study the role of Canada as part of the integrated market for medicines, as well as the social, industrial and economic objectives underlying Canadian policies. I finally propose some modifications and adaptations to the Canadian Patent Act and suggest some orientations for future multilateral negotiations.

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