US embassy cable - 01VATICAN5650

UNCLAS SECTION 01 OF 02 VATICAN 005650 
 
SIPDIS 
 
DEPT. FOR EUR/WE (MENNUTI) 
 
FROM EMBASSY VATICAN/MESSAGE NO. 190/01 
 
E.O. 12958: N/A 
TAGS: PHUM, ETRD, ECON, ETRD, ECON, VT, USTRD, WTRO, VTPHUM, USTRD, WTRO 
SUBJECT: VATICAN-WTO: GREATER TRADE, IPR FLEXIBILITY FOR 
 
 
DOHA 
                       UNCLASSIFIED 
 
PAGE 02        VATICA  05650  01 OF 02  311416Z 
 
REF: VATICAN 5310 
 
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SUMMARY 
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1.   THE VATICAN FOREIGN MINISTRY ISSUED A NOTE VERBALE 
OCTOBER 26 TO ALL ACCREDITED MISSIONS OUTLINING THE HOLY 
SEE'S STANDARD POSITION AHEAD OF THE WTO DOHA MINISTERIAL 
THAT DEVELOPED NATIONS SHOULD BE MORE OPEN TO IMPORTS FROM 
THE DEVELOPING WORLD, WHILE WARNING DEVELOPING COUNTRIES 
AGAINST FOLLOWING A "CRUDE PROTECTIONIST PATH." THE NOTE 
ALSO INCLUDED A COPY OF ITS JULY 2001 TRIPS COUNCIL NON- 
PAPER ENTITLED "INTELLECTUAL PROPERTY AND ACCESS TO BASIC 
MEDICINES" WHICH PROPOSED GREATER ACCESS TO PHARMACEUTICALS 
IN THE POOREST COUNTRIES. THIS RELEASE FOLLOWED AMBASSADOR'S 
MEETING (REFTEL) IN WHICH POST AND U.S. PHARMACEUTICAL 
INDUSTRY REPS PRESSED VATICAN CONTACTS FOR GREATER 
UNDERSTANDING OF THE NEED FOR IPR PROTECTION. 
 
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FAIR TRADE FOR ALL 
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2.   THE VATICAN'S PRE-DOHA DOCUMENT, ENTITLED "DEVELOPMENT 
DIMENSIONS OF THE WORLD TRADE ORGANIZATION," CALLED FOR 
"GESTURES OF FLEXIBILITY AND SOLIDARITY" AS A STEP TOWARDS A 
MORE INCLUSIVE VISION OF WORLD TRADE. THE VATICAN SEES "THE 
ENHANCED DEVELOPMENT OF POORER COUNTRIES" AS A PLUS FOR 
GLOBAL ECONOMIC PROGRESS AND INTERNATIONAL PEACE AND 
                       UNCLASSIFIED 
 
PAGE 03        VATICA  05650  01 OF 02  311416Z 
SECURITY. THE VATICAN BELIEVES THE LEAST DEVELOPED NATIONS 
HAVE ONLY "A MARGINAL AND DIMINISHING SHARE" IN WORLD TRADE. 
FAIR TRADE RELATIONS, ACCORDING TO THE VATICAN, ARE AN 
ESSENTIAL COMPONENT OF ECONOMIC AND HUMAN DEVELOPMENT. THE 
VATICAN WARNS THAT ECONOMICS AND TRADE MUST BE PURSUED 
WITHIN THE BROADER CONTEXT OF HUMAN DEVELOPMENT, THE 
PROMOTION OF HUMAN RIGHTS AND THE ELIMINATION OF POVERTY. 
 
3.   THE VATICAN CALLS FOR THE ELIMINATION OF "TRADE AND 
PRODUCTION DISTORTING EXPORT SUBSIDIES." IT SEEKS MARKET 
ACCESS FOR PRODUCTS IN WHICH THE POOREST COUNTRIES HAVE 
COMPARABLE ADVANTAGE. HOWEVER, THE VATICAN WARNED DEVELOPING 
COUNTRIES AGAINST FOLLOWING A "CRUDE PROTECTIONIST PATH," 
INSTEAD THESE COUNTRIES SHOULD FOLLOW A "SOLID AND VIABLE 
PATH TO FREE TRADE THAT PERMITS THEM TO ENTER INTO AN 
EQUITABLE DIALOGUE WITH INTERNATIONAL MARKETS." THE ECONOMIC 
AND NEGOTIATING POWER DISADVANTAGES OF LESS INDUSTRIALIZED 
ECONOMIES AND COMMODITY PRODUCER ECONOMIES CAN BE OVERCOME 
BY FULLY IMPLEMENTING THE EXISTING WTO SPECIAL AND 
DIFFERENTIAL TREATMENT PRINCIPLE. THE VATICAN URGES THAT 
DEVELOPING NATIONS RECEIVE TECHNICAL AND FINANCIAL 
ASSISTANCE TO MEET EXISTING WTO OBLIGATIONS. ASSISTANCE IS 
ALSO ASKED TO BROADEN AND DIVERSITY THEIR PRODUCTION AND 
EXPORT BASE AND TRADE PROMOTION EFFORTS. 
 
4.   THE VATICAN LAMENTS THE FACT THAT DEVELOPING COUNTRIES 
ARE FORCED TO DIVERT VITAL RESOURCES TO IMPLEMENTING NEW 
INTERNATIONAL DUTIES, ESPECIALLY INTELLECTUAL PROPERTY 
PROTECTION. THE VATICAN CALLS FOR A REVIEW OF TRIPS TO 
BALANCE THE INTERESTS OF DEVELOPED AND DEVELOPING COUNTRIES, 
ESPECIALLY WHEN "THE LIFE OF PEOPLE COULD BE A STAKE." THE 
                       UNCLASSIFIED 
 
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VATICAN ASKS THAT NO TRADE INTEREST HINDER THE MOST 
ESSENTIAL ASPECTS OF THE RIGHT TO LIFE. 
 
5.   THE VATICAN URGES GREATER TRANSPARENCY FOR THE WTO IN 
ALL ASPECTS OF DECISION MAKING. DEVELOPING NATIONS NEED TO 
"OWN" THE DECISIONS THAT IMPACT DIRECTLY ON THEIR ECONOMIES 
AND THEIR PARTICIPATION IN THE GLOBAL MARKET. THE VATICAN 
ASKS THAT THE NEGOTIATING AND REPRESENTATIONAL DIFFICULTIES 
OF THESE NATIONS BE CONTINUALLY ADDRESSED. IT ALSO WARNED 
THAT THE WTO COULD NOT RESOLVE ALL THE DEVELOPMENT 
CHALLENGES OF TODAY'S WORLD AND SUGGESTED THAT ATTEMPTS TO 
OVER-STRETCH ITS MANDATE SHOULD BE RESISTED. 
 
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SOCIAL MORTGAGE ON PHARMACEUTICAL PROFITS 
----------------------------------------- 
 
6.   THE TRIPS NON-PAPER SUGGESTS ACCESSIBLE PRICE IS A 
DETERMINANT FACTOR IN ACCESS TO MEDICINES AND THAT 
FUNDAMENTAL SOCIAL FACTORS MUST BE BALANCED AGAINST HIGH 
PRICING TO ATTRACT INVESTORS AND MAINTAIN RESEARCH AND 
DEVELOPMENT. THE VATICAN URGES AN "INNOVATIVE PRICING 
SYSTEM" TO PRESERVE R AND D INCENTIVES, SUGGESTING LUXURY 
AND NON-ESSENTIAL PHARMACEUTICAL PRODUCTS (COSMETICS) SHARE 
A GREATER BURDEN FOR R AND D OF ESSENTIAL MEDICINES. 
ACCORDING TO THE VATICAN, "A BROAD-BASED COMMITMENT OF 
SOLIDARITY IS THE BEST WAY TO PREVENT POOR COUNTRIES FROM 
FALLING INTO THE TEMPTATION OF WEAKENING THE INTELLECTUAL 
PROPERTY RIGHTS FRAMEWORK." 
 
                       UNCLASSIFIED 
 
PAGE 05        VATICA  05650  01 OF 02  311416Z 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ9922 
 
PAGE 01        VATICA  05650  02 OF 02  311416Z 
ACTION EUR-00 
 
INFO  LOG-00   AGRE-00  AID-00   AIT-03   CEA-01   CIAE-00  COME-00 
      CTME-00  INL-00   DINT-00  DODE-00  ITCE-00  DOTE-00  SRPP-00 
      EB-00    EXME-00  E-00     FAAE-00  UTED-00  VC-00    FRB-00 
      H-01     TEDE-00  INR-00   IO-00    ITC-01   JUSE-00  LAB-01 
      L-00     VCE-00   AC-01    NSAE-00  NSCE-00  OES-01   OIC-02 
      OMB-01   OPIC-01  CAEX-01  PA-00    PC-01    PRS-00   ACE-00 
      P-00     SP-00    SSO-00   SS-00    STR-00   TEST-00  TRSE-00 
      USIE-00  SNIS-00  NISC-00  PRM-00   DRL-02   G-00     SAS-00 
        /017W 
                  ------------------37F5E1  311420Z /38 
R 311355Z OCT 01 
FM AMEMBASSY VATICAN 
TO SECSTATE WASHDC 0000 
INFO WORLD TRADE ORGANIZATION COLLECTIVE 
 
UNCLAS SECTION 02 OF 02 VATICAN 005650 
 
SIPDIS 
 
DEPT. FOR EUR/WE (MENNUTI) 
 
FROM EMBASSY VATICAN/MESSAGE NO. 190/01 
 
E.O. 12958: N/A 
TAGS: PHUM, ETRD, ECON, USTRD, WTRO, VT 
SUBJECT: VATICAN-WTO: GREATER TRADE, IPR FLEXIBILITY FOR 
 
DOHA 
                       UNCLASSIFIED 
 
PAGE 02        VATICA  05650  02 OF 02  311416Z 
 
7.   THE VATICAN RECOGNIZES THAT THE COUNCIL FOR TRIPS 
CANNOT RESOLVE THE ACCESSIBILITY TO BASIC MEDICINES PROBLEM. 
IT URGES THE COUNCIL TO MAKE A FUNDAMENTAL CONTRIBUTION THE 
IMPLEMENTATION OF TRIPS RULES THAT IS CONSISTENT WITH A 
UNIFIED VISION OF LAW, BASED ON RESPECT FOR HUMAN RIGHTS, 
AND APPLYING THOSE ARTICLES OF THE WTO TREATY THAT CALL FOR 
A PRO-DEVELOPMENT INTERPRETATION OF THE WHOLE LEGAL BODY. 
THE VATICAN SUGGESTS "THIS WOULD CONTRIBUTE TO A BROAD AND 
NOT RESTRICTIVE INTERPRETATION OF ARTICLES 30 AND 31, WHICH 
WOULD ALLOW THAT LICENSING FEES MAY BE FIXED IN ACCORDANCE 
WITH THE REAL PURCHASING CAPACITY OF THE POOREST COUNTRY, 
BALANCED WITH A SYSTEM THAT BLOCKS THE RE-EXPORT OF THE 
LICENSED PRODUCTS TO THE ORIGINAL MARKETS." 
 
8.   COMMENT: IN NONE OF THIS DOES THE VATICAN APPEAR TO 
REFLECT AN UNDERSTANDING OF THE PURELY COMMERCIAL INTEREST 
OF THOSE "DEVELOPING" COUNTRIES WHICH HAVE A SUBSTANTIAL 
PHARMACEUTICAL INDUSTRY (EG. INDIA, BRAZIL). WE WILL FOLLOW 
UP ON THIS THEME WITH THE PONTIFICAL COUNCIL FOR HEALTH CARE 
ISSUES. POST HAS FAXED COPIES OF THE VATICAN DOCUMENTS TO 
EUR/WE. END COMMENT. NICHOLSON 
 
                       UNCLASSIFIED 
 
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 2001VATICA05650 - Classification: UNCLASSIFIED