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
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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
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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

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