By allowing the import of drugs at Canada’s prices you are setting the price in the United States at the Canadian’s government mandated ceiling. You are importing their price controls. Does Canada make a lot of drugs? Or do they rely upon the enterprise and creativity of Americans to create and produce the drugs they enjoy?
I think it is a glimpse into the mind of a man that has been in the Senate too long and has not had to make executive (government or private) decisions in a long time. McCain can say crap like that in that Senate when he is 1 of 100. But as President if he wishes to remove the motive for the development of new drugs he is a fool. And in the Senate, especially among the long serving senators, you find lots of fools.
You aren't "setting" anything. You are letting Americans purchase drugs at the lowest price they can find. If Canada mandates a ceiling, and some drugs are available through Canada at the ceiling price, so be it; what's the problem?
Does Canada make a lot of drugs? Or do they rely upon the enterprise and creativity of Americans to create and produce the drugs they enjoy?
I don't know. What does it matter? Evidently there are some drugs made by American companies that they find worthwhile to sell to Canada, even though there are price ceilings. That's a choice they make.
The worst possible outcome I can envision is that, if the U.S. started purchasing drugs through Canada's price ceiling at a greater rate, then it would no longer be worthwhile for so many companies to sell drugs to/through Canada as a "loss leader", and so they would cease. In other words, the "worst" outcome is that we destroy the effectiveness of Canada's price ceilings, or at least force them to raise to something approaching true market value.
But depending on how you look at it, that could be considered a good outcome.
But as President if he wishes to remove the motive for the development of new drugs he is a fool.
Neither you nor Will has explained how this would remove the motive for development of new drugs.