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Cablegate: Intellectual Property: Direcon Dg Furche Pledges Goc

VZCZCXYZ0021
OO RUEHWEB

DE RUEHSG #1045/01 3361411
ZNR UUUUU ZZH
O 011411Z DEC 08
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4006
INFO RHMFIUU/DEPT OF JUSTICE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SANTIAGO 001045

STATE PLEASE PASS TO USTR KATE DUCKWORTH
STATE FOR WHA/EPSC, EEB/TPP/BTA/EWH, EEB/TPP/MTA/IPC
TREASURY FOR SSENICH
COMMERCE FOR KMANN

SIPDIS
SENSITIVE

E.O. 12958: N/A
TAGS: ECON ETRD KIPR PREL CI

SUBJECT: INTELLECTUAL PROPERTY: DIRECON DG FURCHE PLEDGES GOC
ACTION

REF: SANTIAGO 419

1. (SBU) SUMMARY: Ambassador Simons met with Director General
Furche, November 25, to press for progress on implementation of
Chile's intellectual property rights (IPR) commitments under the
U.S. - Chile Free Trade Agreement (FTA). Furche claimed Chile was
making progress and cited three laws currently before the Congress:
a copyright law, a law on piracy and illegal commerce, and a law on
plant variety. He agreed to ask for a higher priority on the
copyright legislation, which might speed its approval. Furche said
he was interested in working on an information folio on the FTA's
successes in Chile. He was pleased at the outcome of the recent
APEC Summit and the bilateral meeting between Secretary Rice and FM
Foxley. Furche confirmed he or FM Foxley would attend the Pathways
Ministerial in Panama. He also noted interest in the Trans-Pacific
Partnership was growing. END SUMMARY.

2. (U) In a November 25 meeting at the MFA's Economic Directorate
(DIRECON), Ambassador Paul Simons and Econoff met with Director
General Carlos Furche and Paulina Nazal, Head of the North America
Division.

Progress On IPR Commitments
---------------------------

3. (SBU) Ambassador Simons emphasized Chile needed to make more
progress on implementing its IPR commitments under the FTA. This
was a critical moment for the GOC, but the U.S. was seeing little
movement with regard to the concerns we had raised in April (ref).
DG Furche claimed Chile was making progress. The Congress was
currently considering three draft IPR-related laws: 1) The Senate
was working on a copyright law that had been approved by the Chamber
of Deputies in October 2007 (which had over 200 proposed
amendments). DIRECON recognized the importance of strengthening
this law to incorporate the recommendations on internet service
provider liability, exceptions and limitations, and penalties
previously submitted by USTR. 2) The Senate had approved a law on
Illegal Commerce and Piracy in early November, which had moved to
the Chamber of Deputies for their approval. 3) The GOC had recently
(in the last few days) introduced a law that would ratify the
International Convention for the Protection for New Varieties of
Plants (an FTA obligation).

4. (SBU) The Ambassador noted the lengthy approval process involved
with the copyright law and asked if Congress or the GOC could
accelerate this process. Furche agreed the legislation was bogged
down. It had been given low priority in the Congress. He would try
to get the GOC to raise the priority to "maximum urgency," which
could speed up the process considerably. Furche was committed to
clearing all three laws through the Congress as soon as possible.
The Ambassador offered to meet with Chilean members of Congress to
highlight the importance of the legislation and outline U.S.
concerns.

5. (SBU) In response to the Ambassador's query on the status of
Chile's patent process, Paulina Nazal explained the Ministry of
Health had proposed new draft regulations related to patents in
July. The GOC thought these regulations might address some concerns
expressed by pharmaceutical companies. The Ministry of Health had
received comments on the draft regulations, which were now ready for
approval by the Presidency. Once approved, they would be published
and implemented, however this would probably occur after
mid-December.


Other FTA Issues: Successes and Labor Chapter
--------------------------------------------- -

6. (SBU) Furche expressed an interest in working with AmCham to
develop an information folio on the FTA's successes in Chile. Free
trade with the U.S. had played an important role in assisting
Chile's economic development. The U.S. was the number one
destination for small- to medium-sized Chilean exporters.

7. (SBU) The Ambassador asked about the status of the labor chapter
of the FTA. Nazal explained representatives from the U.S.
Department of Labor and Chilean Ministry of Labor had recently met
in Geneva. They had discussed arrangements to facilitate greater
cooperation between the USG and GOC on labor issues. Further
follow-up was expected.

APEC: A Good Declaration, Good Meetings
----------------------------------------


8. (SBU) Turning to APEC, the Ambassador noted the Summit had
produced a useful Declaration. Furche agreed calling the Summit a
success. He noted there had been significant uncertainty during the
Summit over the news of Citibank's financial problems. Furche
characterized the bilateral between Secretary Rice and FM Foxley as
a "great" meeting and was equally pleased with the results of his
meeting with Ambassador Schwab.

Pathways Ministerial: We'll Be There
-------------------------------------

9. (SBU) Furche said either he or FM Foxley would attend the
Pathways Ministerial in Panama on December 10. Foxley and Secretary
Rice had an excellent relationship. Given her personal appeal for
Chile's participation in the Ministerial, Furche thought Foxley
would find it hard not to attend. Furche cited one possible
conflict. Trade ministers were organizing for a possible WTO
Ministerial in Geneva to try to restart the Doha Round around the
time of the Pathways Ministerial. However, Furche assured the
Ambassador the GOC would be at the Panama meeting.

Trans-Pacific Partnership: Interest Growing
-------------------------------------------

10. (SBU) Furche reported that during the APEC Summit, members of
the Trans-Pacific Partnership (P-4) had reaffirmed their intent to
expand to seven members (to include Australia, Peru, the U.S., and
possibly Vietnam). Chile was delighted with this development.
Other countries were also expressing interest in the P-4, including
Canada (though this might be tempered by concerns from their dairy
industry).
SIMONS

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