Identifier
Created
Classification
Origin
06RIYADH8233
2006-10-16 07:10:00
CONFIDENTIAL
Embassy Riyadh
Cable title:  

USG DISCUSSION WITH MINISTER OF COMMERCE

Tags:  ETRD ECON KIPR SA 
pdf how-to read a cable
VZCZCXRO9868
PP RUEHDE
DE RUEHRH #8233/01 2890710
ZNY CCCCC ZZH
P 160710Z OCT 06
FM AMEMBASSY RIYADH
TO RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEHC/SECSTATE WASHDC PRIORITY 2621
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RUEHJI/AMCONSUL JEDDAH PRIORITY 7805
RHEHAAA/WHITE HOUSE WASHINGTON DC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 RIYADH 008233 

SIPDIS

SIPDIS

RIYADH PASS DHAHARAN
USDOC FOR 3000/US&FCS ASST SEC & DIR GENERAL ISRAEL
HERNANDEZ, USDOC FOR 3131/CS/OIO/RD/ANESA/GREG LOOSE, USDOC
FOR 3004/ITA/ADVOCACY/CJAMES AND DBLOOM, WHITE HOUSE FOR
USTR FOR SEAN DONNELLY

E.O. 12958: DECL: 10/16/2016
TAGS: ETRD ECON KIPR SA
SUBJECT: USG DISCUSSION WITH MINISTER OF COMMERCE
HIGHLIGHTS IPR ISSUES

Classified By: U.S. Ambassador James Oberwetter; reasons: 1.4 (b),(d),
and (e)

C O N F I D E N T I A L SECTION 01 OF 02 RIYADH 008233

SIPDIS

SIPDIS

RIYADH PASS DHAHARAN
USDOC FOR 3000/US&FCS ASST SEC & DIR GENERAL ISRAEL
HERNANDEZ, USDOC FOR 3131/CS/OIO/RD/ANESA/GREG LOOSE, USDOC
FOR 3004/ITA/ADVOCACY/CJAMES AND DBLOOM, WHITE HOUSE FOR
USTR FOR SEAN DONNELLY

E.O. 12958: DECL: 10/16/2016
TAGS: ETRD ECON KIPR SA
SUBJECT: USG DISCUSSION WITH MINISTER OF COMMERCE
HIGHLIGHTS IPR ISSUES

Classified By: U.S. Ambassador James Oberwetter; reasons: 1.4 (b),(d),
and (e)


1. (C) Summary: On 20 September 2006, Ambassador James
Oberwetter, Assistant Secretary of Commerce for International
Trade and Director General of the U.S. Commercial Service
(DG),Israel Hernandez, and Commercial Counselor, Nasir
Abbasi met with Saudi Minister of Commerce and Industry,
Hashim bin Abdullah bin Hashim Yamani. The Minister
discussed the changes brought to the Kingdom by World Trade
Organization (WTO) accession, accepted an offer for
assistance from the Department of Commerce, emphasized the
Saudi Arabian Government's (SAG) commitment to protecting
intellectual property rights (IPR),and highlighted the
opportunities available to U.S. companies looking to invest
in the Kingdom.

-------------- --------------
SAUDIS UNCOMFORTABLE WITH PRESSURE ON WTO ISSUES
-------------- --------------


2. (C) Minister Yamani expressed concerns over pressure for
the Kingdom of Saudi Arabia (KSA) to further liberalize the
country's trade regime. Specifically, he noted that KSA
recently joined the WTO, and had taken great strides to open
Saudi markets to international investment. The Minister
found it difficult for KSA to be told it needed to go further
on liberalizing trade when other nations who have been WTO
members much longer have much more restrictive trade
regulations.


3. (C) Minister Yamani believes WTO accession is the "heart
of change" in KSA. He highlighted the SAG's passage of 43
laws to improve the international investment climate in KSA.
The WTO process was helping speed the pace of change,
including improving the IPR climate. The overall business
environment is better for both internal and international
investment as a result of the WTO process.


4. (C) It was brought to Minister Yamani's attention that
some companies did not receive word of the changes to the

requirements for certificates of conformity. Minister Yamani
agreed to put announcements on the Ministry's website and to
provide copies to the U.S. Embassy. Minister Yamani pointed
out an information inquiry point on the website where
companies can pose questions to Ministry officials. He noted
that the entire certificate of conformity process was being
simplified, codified, and posted on the web.


5. (C) In support of these efforts, Minister Yamani
welcomed assistance from the Department of Commerce's (DoC)
Commercial Law Development Program (CLDP). Minister Yamani
would like to begin the CLDP process and supports DoC's
technical assistance. Regarding CLDP assistance for the
Islamic Development Bank (IDB),Minister Yamani believed the
IDB would be open to assistance. However, he pointed out
that the IDB is independent of his Ministry. Minister Yamani
encouraged direct contact with the IDB to pursue CLDP
assistance.

-------------- --------------
MINISTER HIGHLIGHTS IPR, PATENT PROTECTION PROGRESS
-------------- --------------


6. (C) The SAG passed new IPR laws and implemented new
procedures that allow the SAG to work with U.S. Trade
Representative (USTR) on additional reforms, including
addressing patents by the close of 2006. Minister Yamani was
pleased to note that the patents issue was being addressed
ahead of schedule. Seven new laws were passed, translated,
and agreed to by the U.S. In addition, a new law protecting
trade secrets was passed and is undergoing translation, as
was a law regarding competitiveness that established a
competitiveness council. A new copyright law incorporating
aggressive enforcement and severe penalties is in the works.
Coupled with the effort to improve existing laws, Minister
Yamani committed the Board of Grievances to being transparent
in its decisions.


7. (C) The SAG is conducting a study of requests provided
by the USTR and the Department of Justice (DoJ) to SAG
officials in Washington because KSA wants to be a model for

RIYADH 00008233 002 OF 002


IPR protection. In the SAG's IPR efforts, KSA is farther
ahead of many nations that joined the WTO prior to KSA.
Minister Yamani emphasized the SAG's hard work on IPR issues
including legal structure, penalties, and enforcement to make
KSA a better place to do business.

--------------
THE KINGDOM IS OPEN FOR BUSINESS
--------------


8. (C) Minister Yamani emphasized KSA's commitment to
several large scale projects for which he believes U.S. firms
should compete. To interest U.S. companies in investing in
KSA, the SAG will conduct road show presentations in Chicago,
New York, Georgia, and Houston.


9. (C) Minister Yamani recapped the business opportunities
available, emphasizing upgrades to basic infrastructure and
large projects in the petroleum, power generation, and
petrochemical sectors. The SAG believes in free trade and a
market economy, to include increased openness in business,
government and broader Saudi society. Minister Yamani
requests that the U.S. Government continue to support
business in KSA, noting that U.S. companies have "the number
one slot," and as result, are uniquely positioned to take
advantage of the opportunities available.
OBERWETTER