MINISTRY OF COMMERCE ON BIT, ROZS AND DATA EXCLUSIVITY

UNCLAS SECTION 01 OF 02 ISLAMABAD 003762

SIPDIS

STATE FOR SCA/PB, EB/TPP, EB/IFD/OIA, AND EB/IFD/OMA
USAID FOR ANE MWARD
TREASURY FOR OSSA
COMMERCE FOR ANESA/OSA
MANILA PASS USED AT ADB
STATE PASS USTR FOR RGERBER, DHARTWICK

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EFIN ECON EINV ETRD PREL PK
SUBJECT: MINISTRY OF COMMERCE ON BIT, ROZS AND DATA EXCLUSIVITY


1. (U) This is an action request. Please see para 3.

SUMMARY
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2. (SBU) Econ Counselor met August 27 with Jamshid Khan, Joint
Secretary, Ministry of Commerce at his request to discuss next steps

SIPDIS
on the Bilateral Investment Treaty (BIT),GOP concerns regarding the
Reconstruction Opportunity Zones (ROZs),and a possible ROZ mission
to the U.S. Econ Counselor inquired about the status of the data
exclusivity legislation, which is now back at the Ministry of Health
after a Ministry of Commerce review for consistency with the WTO
Agreement on Trade-related aspects of Intellectual Property Rights
(TRIPS). Raheela Tajwar, Deputy Secretary of Commerce, also
participated in the meeting.

ROZs
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3. (SBU) Khan made a pitch for inclusion of the cotton trouser
categories (347 and 348) on the ROZ product list. Econ Counselor
responded that considerable effort had gone into selecting the
categories to maximize the benefit to Pakistan and increase the
chances that the U.S. Congress would approve the legislation. Khan
remarked that Levi Strauss was particularly interested in locating
to a ROZ site to produce cotton trousers, adding that it was very
likely that not all goods produced in the ROZs would be destined for
the U.S. The Levi Strauss Director of Corporate Affairs is lobbying
for inclusion of the 347 and 348 categories, according to Khan. He
also questioned why the 338 and 339 categories (cotton knit shirts)
were only partially covered. ACTION REQUEST: Post would appreciate
information to respond to Khan's question. END ACTION REQUEST.


4. (SBU) Khan also requested that the entire province of
Balochistan be included in the legislation. He argued that all of
Balochistan has the same economic development needs as the FATA and
earthquake-affected zones and also suffers from negative effects of
political extremism.


5. (SBU) The Ministry of Commerce, in conjunction with its Hunton
and Williams consultants, is starting to organize a delegation to go
to Washington to lobby for ROZ passage. Khan commented that
replicating the positive impression left by the Karachi Chamber of
Commerce representatives' visit to Congress and U.S. agencies would
assist in passage of ROZ legislation. The Ministry is looking for
business people from the designed ROZ areas who are interested in
investing there and who preferably already have visas, given the lag
time between approval and actual visa issuance. Post will work with
the Ministry as appropriate and apprise Washington as plans
develop.

Bilateral Investment Treaty
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6. (SBU) The GOP will hold an interagency meeting August 30 to
discuss next steps on the BIT. Khan identified five remaining areas
where agreement has not been reached and his sense of the degree of
flexibility on each side:

-- scope and coverage (Article 2). Khan believes neither side has
any flexibility here.
-- transparency (Articles 11 and 20.6). Khan believes that the
U.S. has flexibility here. Board of Investment (BOI) Secretary
Mushque Malik told us the same thing last week.
-- claims on behalf of an enterprise (Article 24.6). Khan thought
the U.S. has some flexibility here, as did Malik.
-- investment agreements (Article 24.1). Khan's impression is that
neither side has flexibility here.
-- arbitration rules. Khan did not comment on the GOP position
here, but highlighted that the BOI negotiates on behalf of the GOP.
Post will follow up on results of the August 30 meeting.

Data Exclusivity
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7. (SBU) Economic Counselor recounted her August 25 meeting with
the Secretary of the Ministry of Health Dr. Khushnood Akhtar Lashari
who said that the data protection amendment had moved from the

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Ministry of Health to the Ministry of Commerce. Raheela Tajwar,
Deputy Secretary of Commerce, said that that the Commerce Ministry
WTO division had reviewed the legislation for consistency with
TRIPS, but that the draft is now back at the Ministry of Health.
She did not know if any changes had been made, but highlighted that
this legislation would not/not be TRIPS-plus. Both Tajwar and Khan
expressed their support for this legislation. Econ Counselor
expressed interest in seeing a draft, remarking that many other
countries working on data exclusivity had shared drafts with the
U.S., but Tajwar and Khan did not take the bait.


8. (SBU) Econ Counselor highlighted the importance of passage of
TRIPS-consistent data exclusivity legislation for innovation and the
development of life sciences industries in Pakistan as well as the
key role progress (or lack thereof) on this issue will play in
determining the outcome of Pakistan's out-of-cycle review. Khan
suggested writing another letter to the Ministry of Health
highlighting our concerns. Comment: During the Ambassador's
introductory calls on the Minister of Health and Commerce, they both
expressed interest in seeing this legislation passed and seemed to
understand the importance of securing National Assembly approval
quickly. We will continue to pursue this issue. End comment.

PATTERSON