KUWAIT CHAMBER OF COMMERCE ON IPR AND LABOR ISSUES

UNCLAS KUWAIT 004559 SIPDIS SENSITIVE SIPDIS STATE FOR NEA/ARPI SWALKER, LONDON FOR LTSOU, EB/FO, DEPARTMENT PLEASE PASS TO USTR FOR PBURKHEAD AND USPTO FOR PFOWLER E.O. 12958: N/A TAGS: KIPR ELAB PGOV PREL KU IPR SUBJECT: KUWAIT CHAMBER OF COMMERCE ON IPR AND LABOR ISSUES REF: A. KUWAIT 4402 ¶B. KUWAIT 3222 ¶C. KUWAIT 1493 ¶D. KUWAIT 790 ¶1. (SBU) Summary and Comment. In an October 19 meeting with Econ Counselor, the Deputy Director General of the Kuwait Chamber of Commerce and Industry (KCCI) contested Kuwait's non-compliance status on IPR and labor rights. He requested additional details outlining USG IPR compliance issues and rejected trade unions as potentially destabilizing organizations that could be exploited by Kuwait's large and fractious foreign workforce to advance competing national interests. Al-Rabah's efforts to link trade unions with the potential for increased political instability appear misplaced, disguising perhaps a broader and more realistic concern for increased unity and influence among foreign laborers in labor disputes with their public and private sector employers. End Summary and Comment ¶2. (SBU) On October 19, Econcouns, accompanied by Econoff, met with Rabah Al-Rabah, Deputy Director General of the KCCI, a non-government entity with close ties to the GOK. Emboffs addressed Kuwait's non-compliance with IPR and labor issues within the on-going TIFA process. Al-Rabah expressed disappointment and surprise that Kuwait could be considered uncooperative on these issues, particularly IPR, and requested clarification of USG expectations. He asserted that the GOK's 1998 IPR law and the government's efforts to enforce IPR measures were making headway and that enforcement measures were being implemented per USG requests. ¶3. (SBU) Al-Rabah added that the "even the U.S. Congress had expressed support for GOK laws and actions." Econcouns countered that although Kuwait had taken some steps regarding IPR protection, much remained to be done. He said although Kuwait Customs and the Commerce Ministry are taking active measures, adequate and sustained enforcement by the Ministry of Interior is still lacking, as well as a clear legal basis for prosecutions. He added that punitive measures by the MOI against violators arrested during IPR raids were weak, translating into long-term economic losses for Kuwait and the United States. Al-Rabah reiterated his call for additional information. (Note: On October 22, Econoff passed KCCI detailed IPR non-compliance information earlier provided by USTR regarding Kuwait.) ¶4. (SBU) On labor issues, Al-Rabah concurred that Kuwait was not in compliance with ILO conventions it had agreed to concerning labor rights. He urged increased consideration of Kuwait's social demographics. He explained that Kuwait was not ready for trade unions, stating that labor rights, in general, are not "a clear cut issue" in Kuwait given the "130 nationalities working and residing in the country, comprising 80 percent of the country's workforce." Al-Rabah suggested that rival nationalities in Kuwait could use trade unions as destabilizing political blocs against one another, resulting in social unrest in Kuwait. ¶5. (SBU) Al-Rabah continued that although Kuwait was a democratic and free society, with a developed legal infrastructure, the country remained exposed to "international political risk" given the competing ideological and national sentiments of its contentious international workforce (e.g., Syrians, Lebanese, Palestinians, Pakistani, Indians, Libyans). He urged USG consideration of these and other "political risks" confronting Kuwait within the context of international labor rights discussions. ********************************************* Visit Embassy Kuwait's Classified Website: http://www.state.sgov.gov/p/nea/kuwait/ You can also access this site through the State Department's Classified SIPRNET website ********************************************* LEBARON