Identifier
Created
Classification
Origin
05TELAVIV71
2005-01-05 14:36:00
SECRET
Embassy Tel Aviv
Cable title:  

GOI RESPONSE TO DATA EXCLUSIVITY DEMARCHE

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S E C R E T TEL AVIV 000071 

SIPDIS

FOR USTR SAUMS AND NOVELLI

E.O. 12958: DECL: 01/04/2015
TAGS: ECON ETRD KIPR IS ECONOMY AND FINANCE LABOR AND COMMERCE GOI INTERNAL
SUBJECT: GOI RESPONSE TO DATA EXCLUSIVITY DEMARCHE

REF: STATE 00842

Classified By: Ambassador Daniel C. Kurtzer for reasons 1.4 (B and D)

S E C R E T TEL AVIV 000071

SIPDIS

FOR USTR SAUMS AND NOVELLI

E.O. 12958: DECL: 01/04/2015
TAGS: ECON ETRD KIPR IS ECONOMY AND FINANCE LABOR AND COMMERCE GOI INTERNAL
SUBJECT: GOI RESPONSE TO DATA EXCLUSIVITY DEMARCHE

REF: STATE 00842

Classified By: Ambassador Daniel C. Kurtzer for reasons 1.4 (B and D)


1. (S) Ambassador Kurtzer delivered points in reftel to Vice
PM and Minister of Industry, Trade and Labor Ehud Olmert on
January 4, 2005. Olmert objected to the language used in the
demarche, but he accepted the principle that if the data
exclusivity legislation is withheld from passage by the
Knesset, the out-of-cycle review would not be concluded so
that it is possible to continue negotiations. In order to
move forward, he also requested that the USG provide written
comments regarding the principal points of disagreement with
the legislation as currently drafted.


2. (S) Olmert continued that he intends for the legislation
to pass the first reading in the Knesset, but said that he
would guarantee no further consideration of the data
exclusivity legislation until the U.S. and Israel have either
reached a mutually acceptable final agreement, or disengaged
from negotiations. The Minister offered to send a letter to
the chairman of the Finance Committee of the Knesset stating
that the legislation should not even be discussed in
committee until the process with the U.S. has come to a
conclusion. Olmert's rationale for this option, in lieu of
simply removing the legislation altogether, was that it will
take several weeks to reintroduce the legislation if it is
removed from the Economic Arrangements Law. The Ambassador
expressed concerns regarding this procedure, saying that it
would be cleaner to withdraw the legislation now from
consideration.


3. (S) Olmert and staff had no specific reaction to the
USG's request for a withdrawal of the patent term extension
legislation. Although this legislation is not a part of the
Economic Arrangements Law, consideration by the Knesset is
imminent, with the first reading already scheduled for
January 10.


4. (SBU) Olmert also requested that the USG provide a
written critique of MOIT letter dated November 1, 2004 and
the data exclusivity legislation as currently drafted, in
addition to proposing new ideas that the USG has for moving
the process forward.


5. (S) One downside to the proposal by the GOI to allow the
data exclusivity legislation to pass a first reading of the
Knesset is that once the legislation passes a first reading,
it cannot be completely withdrawn from Knesset consideration.
If the GOI decides not to follow through with legislation,
an MOITL staff member commented the legislation could be
"lost indefinitely in committee." Allowing the legislation
to pass a first Knesset reading also leaves the option open
for the GOI to quickly move along with the law as currently
drafted should negotiations with the U.S. fail. An initial
reading of the Budget and Economic Arrangements Law is
expected as soon as coalition talks have been finalized.
MOITL staff estimate that the third and final reading of the
law would not occur until the end of February.


6. (S) Comment. While Olmert has modified the terms of his
proposal he is still predisposed to getting back to the
bargaining table. Olmert's reformulating of his own offer to
"withhold" the bill shields him from criticism by domestic
industry. Motivation for moving ahead with the legislation
as currently drafted may be based on the Ministry of Justice
legal opinion that the legislation fulfills all TRIPS
commitments and thus avoids potential WTO trade disputes.
End Comment.

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