ITALIAN RESPONSE TO USG OBJECTIONS TO EC/SWISS POSITIONS ON

UNCLAS ROME 001200

SENSITIVE
SIPDIS

STATE PASS TO USTR FOR TANUJA GARDE
STATE ALSO PASS TO USTR FOR DAWN SHACKLEFORD
STATE FOR EEB/TPP/MTAA

E.O. 12958: N/A
TAGS: ECON ETRD EUN KIPR IT
SUBJECT: ITALIAN RESPONSE TO USG OBJECTIONS TO EC/SWISS POSITIONS ON
GEOGRAPHICAL INDICATIONS

Ref: State 104985

1.(SBU) Summary. GOI interlocutors remain unmoved from their support
for the EU/Swiss Geographic Indicators proposal. End Summary


2. (SBU) Ambassador Benedetto Francese, WTO Office Director at the
Ministry of Foreign Affairs, gave ECON and FAS EmbOffs on October 29
an expanded Italian response to reftel points (USG opposition to EU
and Swiss Government proposals on Geographic Indicators and the
Convention on Biological Diversity). Separately, the Ministry of
Agriculture sent Post a brief written reply stating that Italian
Agriculture Minister Zaia has a stronger position (more GI
protection) than the EU/Swiss proposal. Post also delivered reftel
points to the Ministry of Economic Development (trade) but did not
receive a substantive response.


3. (SBU) Francese said Italy's support for the EU/Swiss proposal is
based on its desire for an expanded and strengthened GI protection
regime. He explained that Italy wants greater GI protection for
Italian "consumer products" (i.e. agriculture and textile) to
confront serious challenges posed by the counterfeiting of Italian
products in developing countries such as China and India. Francese
expressed Italian surprise at USG opposition to the EU/Swiss
proposal because he said the volumes of US exports involved in the
GIs debate are small compared to EU and Italian exports. He
speculated that in this respect the USG opposition to the EU/Swiss
proposal is based on principle rather than concerns for significant
negative impact on U.S. exports. EmbOffs underlined reftel points
that the current TRIPS system provides sufficient protection.
Francese agreed that the U.S. patent and trademark system provides
enough protection to Italian products, but he reiterated that Italy
is more concerned with greater protection in developing markets
where the legal system is not as robust. Francese argued that the
GI system protects the indigenous manufacturing process tied to a
region, and not the product per se, and said general international
rules to protect such processes are needed. Francese said Italy
hoped the USG would reconsider its position.


4. (SBU) In response to EmbOffs reftel points that the EU/Swiss
proposals may create an impasse in WTO negotiations, Francese
suggested working towards a compromise. While not an official
Italian position, he said that putting a cap on the number of
GI-protected products may be something that both sides could
consider. Francese concluded that Italy would welcome bilateral
discussions to clarify positions and find a way forward.

THORNE