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.

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LEBARON