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Cablegate: Recommendation to Approve Gsp Waivers Coupled

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS ANKARA 003347

SIPDIS

DEPT FOR EB/TPP/MTA/IPE, EUR/SE, EB/TPP/ABT
DEPT PASS USTR FOR LERRION/JCHOE-GROVES
DEPT PASS LIBRARY OF CONGRESS FOR STEPP
DEPT PASS USPTO FOR JURBAN AND EWU
USDOC FOR ITA/MAC/DDEFALCO AND JBOGER

SENSITIVE

E.O. 12958: N/A
TAGS: ETRD KIPR TU
SUBJECT: RECOMMENDATION TO APPROVE GSP WAIVERS COUPLED
WITH NEW IPR DEMARCHE

Ref: (A) Sirotic/Urban Email 6/13 (B) State 66948

1. (U) Embassy understands that Washington agencies are
considering a waiver of competitive needs limits for
travertine, as well as de minimus waivers and a
redesignation for other Turkish products, under our
Generalized System of Preferences (GSP) program. The
Pharmaceuticals Research and Manufacturers Association
(PhRMA) on June 1 filed a petition to limit Turkey's
GSP eligibility over weaknesses in the intellectual
property regime, primarily in data exclusivity and
patent protection.

2. (SBU) Post believes that the ability to limit GSP
benefits is the most effective lever at our disposal in
dealing with IPR issues, and that we should use it with
discretion and strategically to achieve our goals in
this area. Therefore, post recommends granting waivers
at this time, but maintaining the pressure on the GOT
to improve its IPR regime through a Minister-level
demarche. According to GOT, EU and industry sources,
the GOT appears ready to introduce a significant
enhancement to the recent regulation on data
exclusivity, extending protection to molecules which
are not patented in Turkey. This would be a very
important step in the right direction, though it would
not address all our concerns under the TRIPS Agreement.
The Turks had promised the EC that they would do this
in the context of the latter's Trade Barrier Review
investigation. Taking steps to limit Turkey's GSP
eligibility now could backfire, possibly by delaying
the announcement of improved data exclusivity
protection. (Local pharma representatives told us they
had registered their views with PhRMA, and that the
latter had withdrawn the GSP petition - ref A).

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3. (SBU) We should ensure that the Turks do not
interpret favorable decisions on their GSP requests as
a sign that they are off the hook on IPR issues.
Embassy recommends that Washington agencies develop an
instruction to demarche the State Minister for Foreign
Trade on this, noting that the GOT has narrowly avoided
additional limits on its GSP eligibility, but that we
will be paying close attention to outstanding data
exclusivity, patent, copyright and trademark issues
highlighted in the Special 301 report as we consider
Turkey's future eligibility.
EDELMAN

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