Medicine is often much cheaper in Canada, but it is illegal for Americans to buy it there and bring it to the United States.
Blagojevich has been a strong advocate of changing that law.
Officials from the U.S. Food and Drug Administration say they oppose importing Canadian drugs because the FDA can't guarantee the safety of medicine coming from north of the border. They say the risks include false labeling and incorrect ingredients.
Blagojevich spokeswoman Abby Ottenhoff said the decision isn't surprising. She says the governor's still hoping for federal approval allowing importation as the result of a citizen's petition drive.