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Cablegate: Wto Consultations On China Ipr: Portugal Agrees In

VZCZCXRO9429
RR RUEHAG RUEHDF RUEHIK RUEHLZ
DE RUEHLI #1797 2360636
ZNR UUUUU ZZH
R 240636Z AUG 06 ZDK
FM AMEMBASSY LISBON
TO RUEHC/SECSTATE WASHDC 5092
INFO RUCNMEM/EU MEMBER STATES
RUEHBJ/AMEMBASSY BEIJING 0326
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHBS/USEU BRUSSELS

UNCLAS LISBON 001797

SIPDIS

SENSITIVE
SIPDIS

USTR FOR POSNER (OGC), WINTER (CHINA), AND MCCOY (IPR)
STATE FOR EAP/CM CRANE, EB/TPP/BTA SAEGER, AND EB/TPP/IPE
FELSING

E.O. 12958: N/A
TAGS: ECON ETRD AORC KIPR EURM WTRO USTR CH PO
SUBJECT: WTO CONSULTATIONS ON CHINA IPR: PORTUGAL AGREES IN
PRINCIPLE

REF: STATE 126703

1. (U) SUMMARY. Embassy staff met with MFA Multilateral
Services Director Joana Tavares to encourage support as a
co-complainant against China for IPR violations. Tavares
agreed in principle with the US proposal but noted that she
would need to consult with the Ministry of Economy before
rendering a final decision on Portugal's position. Tavares
underscored the importance that Portugal places on the
protection of Intellectual Property Rights (IPR),
particularly as they relate to Geographic Indicators (i.e.
Port wine). She also noted that Portugal was hoping the EU
would support permanent anti-dumping measures against China's
footware and textile industries when provisional measures
expire at the end of October. END SUMMARY.

2. (U) On August 14, Acting Pol/Econ Chief and Pol/Econ
Officer delivered reftel points to MFA Multilateral and
Regional Services Director Joana Galiano Tavares. Tavares
agreed in principle with the US proposal, acknowledging that
China's IPR policies and enforcement were lenient. However,
she commented that she would need to consult with the
Ministry of Economy (MOE) on technical issues before
rendering a decision on Portugal's position. (Note: MOE
officials have been unavailable for comment due to August
holidays and/or illness.) Given MOE consent, Tavares noted
that Portugal would endorse co-sponsoring the US complaint
during internal EU debate but explained that several member
states were reluctant to support such a move. Portugal would
only sign on as a co-complainant based on EU consensus.

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3. (U) Tavares underscored the importance Portugal places on
IPR protection and the need to protect Geographic Indicators
(GIs). As discussions get underway in the second phase of
the US-EU Wine Agreement, Portugal via the EU would be
pressing hard to protect its Port and Madeira wines. MOE
officals have previously expressed that they felt the EU had
sacrificed Portugal's GI interests during the first phase.
They were determined not to see this happen again.

4. (SBU) Tavares further underscored the importance of
anti-dumping rules, noting Portugal's concern with China's
dumping on the EU footware and textile markets. Portugal,
along with other EU footware and textile producers - Italy,
Spain, and France - were supporting permanent EU Anti-Dumping
measures to replace the provisional measures due to expire in
October 2006. She acknowledged that some non-footware and
textile producing member states opposed permanent measures,
despite inferior product quality.

5. (SBU) COMMENT. Portugal usually hides behind EU consensus
on these issues. By expressing qualified support in this
instance, not only is Portugal attempting to sway the US
position on GIs, but also reinforcing its anti-dumping
position within the EU. The Portuguese recognize that the US
is very unlikely to change its GI stance, but they will
continue to reach out at every possible opportunity.
O'Neal

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