Special 301: MFA Disappointed With PWL

UNCLAS ANKARA 002522

SIPDIS

DEPT FOR EB/TPP/MTA/IPE - SWILSON/JURBAN AND EUR/SE DEPT
PASS USTR FOR 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 USTR
SUBJECT: Special 301: MFA Disappointed With PWL
Designation; Response to PhRMA GSP Petition Demarche

REF: (A) State 79058 (B) State 66948

(C) Ankara 2170 and previous


1. (U) Per ref A, Econoff alerted MFA, the Foreign Trade
Undersecretariat (FTU),the Turkish Patent Institute
(TPE) and other agencies on April 29 that Turkey would
remain on the Priority Watch List due to concerns about
data exclusivity, patent linkage and copyright/trademark
enforcement. FTU and TPE had no immediate reaction to
ref A demarche. However, on May 2, Meral Barlas, of the
MFA Americas Department, expressed disappointment with
the decision and offered comments on our earlier message
informing the GOT that the Pharmaceuticals Research and
Manufacturers Association (PhRMA) was considering filing
a Generalized System of Preferences (GSP) petition
against Turkey (ref B).


2. (SBU) Barlas said that the Priority Watch List
designation was disappointing in view of Turkey's recent
efforts to strengthen its intellectual property regime,
such as the January 2005 data exclusivity regulation.
On Zyprexa, Barlas related that MFA had shared ref B
demarche with other GOT agencies, and summarized their
reaction. She noted that Eli Lilly and Abdi Ibrahim
(AI) disputed which of two forms of olanzapine - only
one of which is patented in Turkey - is the basis for
the AI's marketing application. Barlas stated that
litigation in this case continued, with Lilly's current
appeal of an earlier court decision in AI's favor. On
ref B's reference to a possible PhRMA petition to limit
or remove Turkish eligibility for GSP, Barlas contended
that it was "unfair" to link IP problems with GSP, and
that bilateral economic relations "cannot benefit" from
this.


3. (U) Econoff responded that, while Washington
recognized that Turkey had taken steps to improve the IP
regime in some areas, we continued to have serious
concerns about data exclusivity (in that the new
regulation is so limited as to be largely symbolic) and
about anti-piracy and anti-counterfeiting efforts. On
Zyprexa, Econoff underlined the importance of holding
off on marketing approval for AI's product while the
courts decide on the case. He stated that, by U.S.
statute, GSP benefits are conditioned on observing IP
criteria, and that failure to meet these criteria has
limited Turkish eligibility for waivers and additions to
GSP in the past. Moreover, Econoff pointed out that the
USG and U.S. industry have been raising many of the same
IP issues for years, that the GOT has not responded to
numerous requests to discuss these issues bilaterally in
a Trade and Investment Framework Agreement (TIFA)
meeting, and that U.S. industry's patience was wearing
thin.
Edelman