TRIPS MORATORIUM: CROATIA WILL JOIN CONSENSUS, HAS

UNCLAS ZAGREB 000306 SIPDIS STATE PASS USTR E.O. 12958: N/A TAGS: ETRD KIPR SOCI HR SUBJECT: TRIPS MORATORIUM: CROATIA WILL JOIN CONSENSUS, HAS LEGAL CONCERNS REF: A. 02 STATE 265619 ¶B. 03 STATE 26895 UNCLASSIFIED PAGE 02 ZAGREB 00306 120722Z ¶1. THIS IS AN ACTION REQUEST. SEE PARA 6. ¶2. WE SENT USTR ZOELLICK'S LETTER ON THE U.S. TRIPS MORATORIUM TO MINISTER OF ECONOMY JURCIC UNDER COVER OF A NOTE FROM THE AMBASSADOR JANUARY 2 (REF A),WITH COPIES TO THE MINISTERS OF FOREIGN AFFAIRS AND HEALTH. WE PASSED REF B FOLLOW-UP POINTS JANUARY 31. ON FEBRUARY 11 THE AMBASSADOR DISCUSSED THE ISSUE WITH GORDAN MARKOTIC, CURRENTLY HEAD OF THE MFA'S DEPARTMENT FOR ECONOMIC ORGANIZATIONS, AND SOON TO BE CROATIA'S REPRESENTATIVE IN GENEVA. ON THE SAME DAY, WE MET WITH ASSISTANT MINISTER OF ECONOMY OLGICA SPEVEC TO OBTAIN THE GOC'S OFFICIAL RESPONSE. ¶3. MARKOTIC NOTED THAT CROATIA DID NOT OPPOSE THE U.S. MORATORIUM, BUT DID LOOK AT IT AS AN INTERIM STEP. HE EXPRESSED HOPE THAT A MULTILATERAL PERMANENT SOLUTION WOULD BE FOUND SOON, AND THAT CROATIA WOULD SUPPORT ANY CONSENSUS SOLUTION. ¶4. AT THE MINISTRY OF ECONOMY, SPEVEC SAID CROATIA HAD SUPPORTED THE CHAIRMAN'S TEXT OF DECEMBER 16. HOWEVER, IT WOULD WELCOME ANY MULTILATERAL SOLUTION. IT WOULD EVEN JOIN A MORATORIUM, IF ALL WTO MEMBERS AGREED (IT APPEARED THAT SPEVEC THOUGHT THAT GETTING ALL 140 PLUS MEMBERS OF THE WTO TO AGREE WOULD BE DIFFICULT.) ¶5. THE GOC WAS CONCERNED THERE COULD BE LEGAL PROBLEMS IF IT JOINED A MORATORIUM THAT WAS NOT ACCEPTED BY ALL WTO MEMBERS. FOR THE GOVERNMENT TO COMMIT TO SUCH A COURSE, IT MIGHT BE NECESSARY TO ASK FOR CHANGES IN ITS PATENTS LAW. WHILE THE UNCLASSIFIED PAGE 03 ZAGREB 00306 120722Z GOVERNMENT COULD COMMIT NOT TO BRING A CASE TO A TRIPS COUNCIL, CURRENTLY THERE WAS NOTHING TO PREVENT ONE OF CROATIA'S PHARMACEUTICAL COMPANIES FROM SEEKING RELIEF IN COURT. SPEVEC ASKED WHAT MECHANISM EXISTED IN THE U.S. WHICH WOULD INDUCE U.S. DRUG COMPANIES TO GIVE UP THEIR RIGHTS TO CHALLENGE EXPORTS TO THIRD PARTIES OF PATENTED DRUGS. ¶6. ACTION REQUEST: WE WOULD APPRECIATE WHATEVER RESPONSE WASHINGTON AGENCIES COULD PROVIDE TO SPEVEC'S QUESTION. ROSSIN UNCLASSIFIED >