Identifier
Created
Classification
Origin
04AMMAN460
2004-01-20 16:41:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Amman
Cable title:  

AMBASSADOR RAISES TRADE ISSUES WITH DPM HALAIQA

Tags:  ETRD ECON KIPR JO 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 03 AMMAN 000460 

SIPDIS

SENSITIVE

STATE FOR NEA/ARN
PASS TO USTR - E. SAUMS
USDOC 4520/ITA/MAC/ONE/PTHANOS
USDOC ALSO FOR NAOMI WIEGLER

E.O. 12958: N/A
TAGS: ETRD ECON KIPR JO
SUBJECT: AMBASSADOR RAISES TRADE ISSUES WITH DPM HALAIQA

REF: STATE 341991

SENSITIVE BUT UNCLASSIFIED. THIS MESSAGE CONTAINS COMPANY
PROPRIETARY INFORMATION. FOR USG USE ONLY. PROTECT
ACCORDINGLY.

UNCLAS SECTION 01 OF 03 AMMAN 000460

SIPDIS

SENSITIVE

STATE FOR NEA/ARN
PASS TO USTR - E. SAUMS
USDOC 4520/ITA/MAC/ONE/PTHANOS
USDOC ALSO FOR NAOMI WIEGLER

E.O. 12958: N/A
TAGS: ETRD ECON KIPR JO
SUBJECT: AMBASSADOR RAISES TRADE ISSUES WITH DPM HALAIQA

REF: STATE 341991

SENSITIVE BUT UNCLASSIFIED. THIS MESSAGE CONTAINS COMPANY
PROPRIETARY INFORMATION. FOR USG USE ONLY. PROTECT
ACCORDINGLY.


1. (SBU) SUMMARY: Ambassador Gnehm joined by Economic
Officer called on Deputy Prime Minister and Minister of
Industry and Trade Mohammad Halaiqa December 31 to review
outstanding trade issues. Securing a date for the FTA Joint
Committee meeting was a top issue. DPM Halaiqa assured the
Ambassador that agreement on Israeli content in QIZ products
was achievable and imminent, hinting that the 8 percent
figure would be continued. In a three-way discussion with
the National Library director general, a number of tortuous
copyright and IPR issues were quickly ironed out by DPM
Halaiqa. On a bilateral Government Procurement Agreement,
Halaiqa said that Jordan did not have the resources to pursue
one now and would focus on the WTO agreement only. Halaiqa
said that he would look into problems raised about a U.S.
pharmaceutical company's complaint regarding a product's
licensing for generic production and about the DAMAN
pre-shipment inspection program. The Deputy Prime Minister
expressed enthusiasm to be kicking off the January 11-13 Iraq
OUTREACH 2004 trade show. END SUMMARY.

JC Meeting
--------------


2. (SBU) In a meeting at the Ministry of Industry and Trade
(MOIT),the Ambassador opened with a discussion of
preparations for the OUTREACH 2004 trade show and the large,
senior-level U.S. delegation attending. Halaiqa said that he
was ready to open the show and enthusiastic to be
participating. The Ambassador turned to the next meeting of
the FTA Joint Committee. DPM Halaiqa said that he was
generally open to dates in March or April, except for two
periods in March when he would participate in meetings with
the Arab League and in Morocco. (NOTE: A convenient time
might be at the beginning of April, just before the planned
"Destination Baghdad Expo" in Baghdad, currently slated to be
held April 5-8. END NOTE.)

QIZ Agreement with Israel
--------------


3. (SBU) The Ambassador inquired about GOJ-Israeli
negotiations on the percentage of Israeli content required in
products from Qualifying Industrial Zones (QIZs) to have

duty-free access to the U.S. market. The Ambassador
expressed some concern that an agreement had not been reached
to date given that the required Israeli content is scheduled
to roll back to 11.7 percent from the current 8 percent on
February 4. DPM Halaiqa responded that an agreement was
achievable before the February 4 deadline and that he hoped
to conclude it when Israeli DPM Ehud Olmert visited in late
January. Halaiqa said that all indications pointed to having
a final agreement by that time. The Ambassador asked whether
the lack of certainty about required Israeli content
remaining at 8 percent was an impediment to QIZ factories
securing new business. Halaiqa responded that he was hopeful
the content percentage would remain the same as Jordanian
factories could not otherwise remain competitive. At the
same time, the GOJ had to keep the negotiations low profile,
he maintained, because they were highly influenced by the
political situation. (NOTE: As we are reporting septel,
Halaiqa's planned meeting with Olmert may be subsequently
been delayed.)

Copyright and IPR Issues
--------------


4. (SBU) On the GOJ's Copyright Law, the Ambassador noted
that in recent USAID discussions with Minister of Planning
Bassem Awadallah, the GOJ had agreed in principle to seek
Parliament's approval of amendments to the law to make it
consistent with relevant FTA obligations. The MOP had also
agreed to ask the MOIT to develop an action plan, due June
30, to outline specific measures to ensure accession to the
Patent Cooperation Treaty and to the Madrid Agreement on
International Registration of Marks by the end of 2004. The
Ambassador asked to see the action plan when it was ready.
Halaiqa responded that the agreement between USAID and the
MOP was acceptable to him and that the MOIT would do its best
to be responsive.


5. (SBU) The Ambassador inquired about a series of
questions on the Copyright law that the Embassy sent to the
MOIT on December 16 (Reftel). A written response would be
forthcoming, said Halaiqa, who asked Mahmoun Talhouni,
Director General of the National Library, to join the meeting
to review progress on copyright issues. (NOTE: In an
earlier meeting with Econoff, Talhouni gave assurances that
he was consulting with the MOIT and would seek an additional
4-5 amendments to the Copyright Law to meet commitments in
the FTA, but had expressed reservations about addressing
certain points in Reftel. END NOTE.)


6. (SBU) Referring to the list of points in Reftel,
Talhouni said that Article 4(12) of the FTA would require
more time to study and to adopt an appropriate solution
regarding exclusive rights to communicate phonograms by wired
or wireless means. In a brief, to-the-point exchange, DPM
Halaiqa asked Talhouni to finish the review as soon as
possible, not later than January 31.


7. (SBU) Talhouni insisted that the current provisions on
anti-circumvention devices in Article 55 of the Copyright Law
met all of the GOJ's FTA obligations, and that the GOJ's
written response would explain this in detail. Econoff noted
that it was unclear whether the legal community would share
this assessment and asked that the GOJ make public its
interpretation of Article 55. Halaiqa agreed that a publicly
available GOJ interpretation would allow all to see the
government's intent regarding the provision on
anti-circumvention devices.


8. (SBU) Talhouni then deflected an exchange on Article
51(a)(2) of Jordan's Copyright Law by noting that it was
covered in the law's Article 53. Econoff asked that the GOJ
specifically address Article 51(a)(2) as noted in the written
points the USG submitted. DPM Halaiqa assured the Ambassador
that the GOJ would comply with the FTA in Article 51(a)(2) by
inserting language making it applicable to sound recordings
and performances.


9. (SBU) On government use of computer software, Econoff
noted that some measures needed to be taken to address this
point. After a brief exchange on the GOJ's standing
agreement with Microsoft (COMMENT: which we view as too
narrow),DPM Halaiqa agreed to the Ambassador's suggestion
that the GOJ issue a circular throughout GOJ government
offices stating that all government agencies use only
computer software authorized for its intended use. DPM
Halaiqa subsequently told the Ambassador that he had put in
motion a government initiative to circulate such a notice.


10. (SBU) NOTE: The GOJ sent a letter to the embassy on
January 5 giving a written response to Reftel points. The
letter, however, seemed to have been drafted prior to the
Ambassador's meeting and did not fully relflect the
conversation there. (Embassy is faxing a copy to NEA/ARN.)
Econoff has asked the MOIT Foreign Trade Policy section to
take note of the clarifications made at the December 31
meeting with DPM Halaiqa. The Ambassador will be following
up with a letter to DPM Halaiqa, noting in writing these
clarifications. END NOTE.

Government Procurement Agreement
--------------


11. (SBU) DPM Halaiqa told the Ambassador that the GOJ
would not pursue a bilateral GPA, but was focusing instead on
meeting WTO obligations regarding GP. It would be difficult
to pursue the U.S.-GOJ GPA on a parallel track, he said,
explaining that the GOJ does not have enough resources.
Halaiqa said that he understood that the USG only intended to
be helpful in suggesting a bilateral agreement.

Pharmaceutical Company Complaint
--------------


12. (SBU) The Ambassador raised his earlier letter on
behalf of U.S. pharmaceutical company Merck Sharp and Dohme,
which is contesting the Jordan Food and Drug Administration's
(JFDA) licensing to a local generic company of its
weekly-dosed FOSAMAX product. MSD brought the case to court,
contending that its data file on this once-weekly compound to
prevent osteoporosis is not yet in the public domain (unlike
the daily dose),and that the JFDA acted contrary to it
mandate to keep such data private until a five-year license
period elapses in 2006. The Ambassador stressed that this
matter should have been solved through regulatory relief, not
a costly court case brought by MSD. DPM Halaiqa acknowledged
that the outcome was not satisfactory, but noting that the
law gave JFDA a wide mandate, said the agency may be at
fault, and the decision would need to be reviewed. In the
meantime, said Halaiqa, he understood USG concerns, had
written on MSD's behalf before, and would talk about it again
with concerned authorities. (NOTE: Since the meeting, the
court has dismissed MSD's case and the local generic product
is reportedly on the market. END NOTE.)

DAMAN Pre-Shipment Inspection Program
--------------


13. (SBU) The Ambassador raised lack of national treatment
as one more reason why this issue continues to be an irritant
in our trade relations. If Jordan's domestic industries are
not required to register their products and subject them to
potential inspection, why should U.S. companies do so in
order to export to Jordan? It denies or limits opportunity
to our companies, he added. DPM Halaiqa said that the
program was initiated by Dr. Ahmad Hindawi, DG of the Jordan
Institute of Standards and Metrology (JISM). The emphasis
was on goods from the Far East, he said. Nonetheless, he
would look into it and if DAMAN proved to be a trade barrier,
he would take action.


14. (SBU) COMMENT: DPM Halaiqa was quick to address the
gist of our concerns and upbeat about the bilateral trade
relationship. That he had to call in the National Library
Director to try to resolve pending bilateral copyright and
IPR problems -- which the DPM tackled quickly and efficiently
-- may be a sign that the DG is not long in his position,
newly moved to the MOIT from the Ministry of Culture in the
last cabinet reshuffle.
GNEHM