WTO CONSULTATIONS ON CHINA IPR: PORTUGAL AGREES IN

UNCLAS LISBON 001797 SIPDIS SENSITIVE SIPDIS USTR FOR POSNER (OGC),WINTER (CHINA),AND MCCOY (IPR) STATE FOR EAP/CM CRANE, EB/TPP/BTA SAEGER, AND EB/TPP/IPE FELSING E.O. 12958: N/A TAGS: ECON ETRD AORC KIPR EURM WTRO USTR CH PO SUBJECT: WTO CONSULTATIONS ON CHINA IPR: PORTUGAL AGREES IN PRINCIPLE REF: STATE 126703 ¶1. (U) SUMMARY. Embassy staff met with MFA Multilateral Services Director Joana Tavares to encourage support as a co-complainant against China for IPR violations. Tavares agreed in principle with the US proposal but noted that she would need to consult with the Ministry of Economy before rendering a final decision on Portugal's position. Tavares underscored the importance that Portugal places on the protection of Intellectual Property Rights (IPR), particularly as they relate to Geographic Indicators (i.e. Port wine). She also noted that Portugal was hoping the EU would support permanent anti-dumping measures against China's footware and textile industries when provisional measures expire at the end of October. END SUMMARY. ¶2. (U) On August 14, Acting Pol/Econ Chief and Pol/Econ Officer delivered reftel points to MFA Multilateral and Regional Services Director Joana Galiano Tavares. Tavares agreed in principle with the US proposal, acknowledging that China's IPR policies and enforcement were lenient. However, she commented that she would need to consult with the Ministry of Economy (MOE) on technical issues before rendering a decision on Portugal's position. (Note: MOE officials have been unavailable for comment due to August holidays and/or illness.) Given MOE consent, Tavares noted that Portugal would endorse co-sponsoring the US complaint during internal EU debate but explained that several member states were reluctant to support such a move. Portugal would only sign on as a co-complainant based on EU consensus. ¶3. (U) Tavares underscored the importance Portugal places on IPR protection and the need to protect Geographic Indicators (GIs). As discussions get underway in the second phase of the US-EU Wine Agreement, Portugal via the EU would be pressing hard to protect its Port and Madeira wines. MOE officals have previously expressed that they felt the EU had sacrificed Portugal's GI interests during the first phase. They were determined not to see this happen again. ¶4. (SBU) Tavares further underscored the importance of anti-dumping rules, noting Portugal's concern with China's dumping on the EU footware and textile markets. Portugal, along with other EU footware and textile producers - Italy, Spain, and France - were supporting permanent EU Anti-Dumping measures to replace the provisional measures due to expire in October 2006. She acknowledged that some non-footware and textile producing member states opposed permanent measures, despite inferior product quality. ¶5. (SBU) COMMENT. Portugal usually hides behind EU consensus on these issues. By expressing qualified support in this instance, not only is Portugal attempting to sway the US position on GIs, but also reinforcing its anti-dumping position within the EU. The Portuguese recognize that the US is very unlikely to change its GI stance, but they will continue to reach out at every possible opportunity. O'Neal