US embassy cable - 03VATICAN4002

C O N F I D E N T I A L SECTION 01 OF 02 VATICAN 004002 
 
SIPDIS 
 
 
DEPT FOR EUR/WE: LEVIN 
DEPT PASS TO INFO WORLD TRADE ORGANIZATION COLLECTIVE 
 
E.O. 12958: DECL: 09/03/2013 
TAGS: ETRD, PREL, VT, WTRO 
SUBJECT: CANCUN WTO MINISTERIAL: HOLY SEE SEEKS FOCUS ON 
HUMAN DEVELOPMENT 
 
REF: A. A) VATICAN 307 
 
     B. B) 02 VATICAN 6004 
 
CLASSIFIED BY: CHARGE D'AFFAIRES D. BRENT HARDT. REASON: 1.5 (B) AND (D 
). 
 
1. (SBU)  SUMMARY:  FRANK DEWANE, UNDER SECRETARY OF THE 
VATICAN'S COUNCIL FOR JUSTICE AND PEACE, WHO WILL LEAD THE 
    VATICAN'S DELEGATION TO THE CANCUN WTO MINISTERIAL, TOLD 
CHARGE AUGUST 27 THAT THE HOLY SEE WOULD PRESS TO ENSURE THAT 
"HUMAN DEVELOPMENT" WOULD BE A CENTRAL PART OF THE DIALOGUE 
IN CANCUN.  IN THE VIEW OF THE HOLY SEE, PROGRESS IN TRADE 
AND DEVELOPMENT MUST BE ACCOMPANIED BY ATTENTION TO ITS 
IMPACT ON PEOPLE AND COMMUNITIES.  IN THIS CONTEXT, DEWANE 
HAD URGED RAPID RESOLUTION OF THE TRIPS ISSUE TO ENSURE POOR 
COUNTRY ACCESS TO ESSENTIAL MEDICINES, AND A MORE DETERMINED 
EFFORT TO DEAL WITH AGRICULTURAL SUBSIDIES.  THE VATICAN 
RELEASED SEPTEMBER 3 A STATEMENT TO HOLY SEE DIPLOMATIC 
MISSIONS IN PREPARATION FOR THE MINISTERIAL, WHICH CALLED FOR 
A NEW COMMITMENT TO THE DEVELOPMENT NEEDS OF THE POOR AND AN 
ALLOWANCE OF GREATER FLEXIBILITY FOR POOR COUNTRIES IN THE 
IMPLEMENTATION OF TRADE RULES.  END SUMMARY. 
 
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HOLY SEE LINKS TRADE RULES AND HUMAN DEVELOPMENT 
--------------------------------------------- --- 
 
2. (SBU)  FRANK DEWANE, UNDER SECRETARY OF THE VATICAN'S 
COUNCIL FOR JUSTICE AND PEACE, WHO WILL LEAD THE VATICAN'S 
DELEGATION TO THE CANCUN WTO MINISTERIAL, TOLD CHARGE AND 
POLOFF AUGUST 27 THAT THE HOLY SEE WOULD PRESS TO ENSURE THAT 
"HUMAN DEVELOPMENT" WOULD BE KEPT IN SHARP FOCUS IN CANCUN. 
WHILE THE VATICAN DOES NOT INTEND TO GET INTO THE WEEDS IN 
TECHNICAL MATTERS, IT FEELS IT HAS A ROLE TO PLAY IN 
PROVIDING "ETHICAL GUIDELINES" FOR TRADE AGREEMENTS.  AS THE 
HOLY SEE STATEMENT FOR CANCUN (FULL TEXT FAXED TO EUR/WE) 
NOTES, "TRADE SHOULD BENEFIT PEOPLE, NOT JUST MARKETS AND 
ECONOMIES."  IN THIS REGARD, THE VATICAN PLANS TO CALL 
ATTENTION TO THE EFFECTS OF TRADE REGULATIONS ON PEOPLE, 
    PARTICULARLY IN THE DEVELOPING WORLD.  ACCORDING TO THE 
VATICAN STATEMENT, PRESENT AGREEMENTS HAVE OFTEN NEGLECTED 
THESE CONCERNS. 
 
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ONE SIZE DOESN'T FIT ALL 
------------------------- 
 
3.  (SBU)  IN THE CANCUN PREPARATORY DOCUMENT, THE HOLY SEE 
CALLS FOR THE WTO TO TAKE BETTER STOCK, ON A 
COUNTRY-BY-COUNTRY BASIS, OF HOW TRADE REGULATIONS ARE 
AFFECTING HUMAN DEVELOPMENT -- IN PARTICULAR THE ABILITY OF 
COUNTRIES TO DEAL WITH POVERTY AND SOCIAL ISSUES SUCH AS 
ACCESS TO FOOD, WATER, AND EDUCATION AS THEY IMPLEMENT WTO 
AGREEMENTS.  THE DOCUMENT WARNS AGAINST A "ONE-SIZE-FITS-ALL" 
APPROACH TO TRADE REGULATIONS WHEN DEALING WITH DEVELOPING 
NATIONS.  AS DEWANE SAID, WTO RULES SHOULD BE BIASED IN FAVOR 
OF THE DEVELOPMENT OF POORER NATIONS, AND ALLOW FOR 
FLEXIBILITY IN POLICY-MAKING BY THEIR GOVERNMENTS. 
 
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TRIPS 
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4.  (SBU) MEETING WITH US JUST PRIOR TO THE RESOLUTION OF THE 
ACCESS TO MEDICINE ISSUES OF THE AGREEMENT ON TRADE-RELATED 
ASPECTS OF INTELLECTUAL PROPERTY RIGHTS (TRIPS), DEWANE 
EMPHASIZED THAT THE VATICAN RECOGNIZES THE IMPORTANCE OF 
PROPERTY RIGHTS, HAVING ITSELF HELD PROPERTY FOR CENTURIES. 
BUT HE EXPLAINED THAT THE HOLY SEE SEES A KIND OF COMMONLY 
HELD "SOCIAL MORTGAGE" ON SUCH PROPERTY THAT DEMANDS THAT 
    CONCESSIONS BE MADE TO THE COMMON GOOD.  CONCRETELY, THE 
VATICAN'S CANCUN STATEMENT SAYS THERE IS AN "OBLIGATION OF 
THE RICHER COUNTRIES TO TACKLE AND REMEDY AND SHORTCOMINGS 
AND LESS FAVORABLE CONDITIONS OF POOR COUNTRIES AS IF THEY 
WERE INTERNAL PROBLEMS OF THEIR OWN." 
 
5.  (SBU)  CHARGE NOTED THE USG'S COMMITMENT TO ADDRESS THE 
PROBLEMS OF THOSE COUNTRIES MOST IN NEED AND SPECIFICALLY OUR 
DETERMINATION TO ACHIEVE A RESOLUTION OF THE TRIPS ISSUE THAT 
REFLECTED THE SHARED U.S. AND HOLY SEE DESIRE TO OFFER 
LIFE-SAVING MEDICINES TO THE MOST NEEDY.  CHARGE EMPHASIZED 
THAT WE HAD TO STRIKE A BALANCE THAT WOULD PROVIDE DEVELOPING 
COUNTRIES THE ABILITY TO ACQUIRE DRUGS FOR HEALTH EMERGENCIES 
FROM THIRD COUNTRIES WHILE STILL GUARDING AGAINST ABUSE OF 
THE PATENTS OF PHARMACEUTICAL COMPANIES THAT COULD UNDERMINE 
FUTURE RESEARCH AND DEVELOPMENT.  DEWANE ACKNOWLEDGED THAT 
THE BALANCING ACT BETWEEN INTELLECTUAL PROPERTY RIGHTS AND 
ACCESS WAS A DIFFICULT ONE, BUT EMPHASIZED THAT FOR THE HOLY 
SEE, PRIORITY MUST BE GIVEN TO THE NEEDS OF THE MOST 
VULNERABLE.  FOLLOWING THE ANNOUNCEMENT OF THE RESOLUTION OF 
THE ISSUE, THE HOLY SEE'S ACTING FM CONVEYED TO CHARGE THE 
HOLY SEE'S SATISFACTION WITH THE OUTCOME. 
 
 
NOTE: NOT PASSED TO ABOVE ADDRESSEE(S) 
 
VATICAN 00004002  002 OF 002 
 
THAN EUROPE ON THE AGRICULTURAL SUBSIDIES ISSUE.  WHILE HE 
INDICATED THAT LAST YEAR'S CONGRESSIONAL ACTIONS ON DOMESTIC 
SUBSIDIES HAD GENERATED SKEPTICISM IN MANY QUARTERS ABOUT THE 
    U.S. COMMITMENT TO REDUCING AGRICULTURAL SUBSIDIES, DEWANE 
NEVERTHELESS THOUGHT THE EU (AND FRANCE IN PARTICULAR) WOULD 
HAVE "A LOT MORE TO ANSWER FOR" IN CANCUN.  THE HOLY SEE'S 
FOCUS IN CANCUN WILL BE THE NEED FOR REFORMS IN MARKET ACCESS 
FOR PRODUCTS OF POORER COUNTRIES, WHICH THE VATICAN STRESSED 
"CANNOT BE PUT ASIDE INDEFINITELY."  CHARGE EMPHASIZED THAT 
THE U.S. WAS COMMITTED TO REDUCING AGRICULTURAL SUBSIDIES, 
BUT WOULD NEED MOVEMENT FROM THE EU TO MAKE THIS POSSIBLE. 
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COMMENT: FROM DOHA TO CANCUN 
---------------------------- 
 
7. (C)  THE HOLY SEE HAS WELCOMED THE PROGRESS MADE IN DOHA 
TO ADDRESS THE NEEDS OF POORER COUNTRIES AND THEIR PEOPLE, 
BUT WARNS THAT DOHA CAN ONLY BE A STARTING POINT IN A PROCESS 
LEADING TO THE FULL INTEGRATION OF POOR COUNTRIES TO THE 
INTERNATIONAL TRADING SYSTEM.  IN THIS REGARD, THE HOLY SEE 
WILL LIKELY SUPPORT CAPACITY-BUILDING EFFORTS, MARKET ACCESS 
INITIATIVES WITHOUT INSISTENCE ON RECIPROCITY, AND 
FLEXIBILITY IN IMPLEMENTING TRADE RULES.  THEY BELIEVE THAT 
ACHIEVEMENT OF THE DOHA MANDATE TO GIVE SPECIAL ATTENTION TO 
THE NEEDS OF THE POOR CAN ONLY BE ACHIEVED BY DECISIONS OF 
THE DEVELOPED COUNTRIES, "WHICH MUST ASSUME THEIR PARTICULAR 
RESPONSIBILITY FOR THE UNIVERSAL COMMON GOOD." 
 
SEMBLER 
 
 
NOTE: NOT PASSED TO ABOVE ADDRESSEE(S) 
 
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 2003VATICA04002 - Classification: CONFIDENTIAL