US embassy cable - 05TELAVIV71

S E C R E T TEL AVIV 000071 
 
SIPDIS 
 
FOR USTR SAUMS AND NOVELLI 
 
E.O. 12958: DECL: 01/04/2015 
TAGS: ECON, ETRD, KIPR, IS, ECONOMY AND FINANCE, LABOR AND COMMERCE, GOI INTERNAL 
SUBJECT: GOI RESPONSE TO DATA EXCLUSIVITY DEMARCHE 
 
REF: STATE 00842 
 
Classified By: Ambassador Daniel C. Kurtzer for reasons 1.4 (B and D) 
 
1. (S)  Ambassador Kurtzer delivered points in reftel to Vice 
PM and Minister of Industry, Trade and Labor Ehud Olmert on 
January 4, 2005.  Olmert objected to the language used in the 
demarche, but he accepted the principle that if the data 
exclusivity legislation is withheld from passage by the 
Knesset, the out-of-cycle review would not be concluded so 
that it is possible to continue negotiations.  In order to 
move forward, he also requested that the USG provide written 
comments regarding the principal points of disagreement with 
the legislation as currently drafted. 
 
2. (S)  Olmert continued that he intends for the legislation 
to pass the first reading in the Knesset, but said that he 
would guarantee no further consideration of the data 
exclusivity legislation until the U.S. and Israel have either 
reached a mutually acceptable final agreement, or disengaged 
from negotiations.  The Minister offered to send a letter to 
the chairman of the Finance Committee of the Knesset stating 
that the legislation should not even be discussed in 
committee until the process with the U.S. has come to a 
conclusion.  Olmert's rationale for this option, in lieu of 
simply removing the legislation altogether, was that it will 
take several weeks to reintroduce the legislation if it is 
removed from the Economic Arrangements Law.  The Ambassador 
expressed concerns regarding this procedure, saying that it 
would be cleaner to withdraw the legislation now from 
consideration. 
 
3. (S)  Olmert and staff had no specific reaction to the 
USG's request for a withdrawal of the patent term extension 
legislation.  Although this legislation is not a part of the 
Economic Arrangements Law, consideration by the Knesset is 
imminent, with the first reading already scheduled for 
January 10. 
 
4. (SBU)  Olmert also requested that the USG provide a 
written critique of MOIT letter dated November 1, 2004 and 
the data exclusivity legislation as currently drafted, in 
addition to proposing new ideas that the USG has for moving 
the process forward. 
 
5. (S)  One downside to the proposal by the GOI to allow the 
data exclusivity legislation to pass a first reading of the 
Knesset is that once the legislation passes a first reading, 
it cannot be completely withdrawn from Knesset consideration. 
 If the GOI decides not to follow through with legislation, 
an MOITL staff member commented the legislation could be 
"lost indefinitely in committee."  Allowing the legislation 
to pass a first Knesset reading also leaves the option open 
for the GOI to quickly move along with the law as currently 
drafted should negotiations with the U.S. fail.  An initial 
reading of the Budget and Economic Arrangements Law is 
expected as soon as coalition talks have been finalized. 
MOITL staff estimate that the third and final reading of the 
law would not occur until the end of February. 
 
6. (S)  Comment.  While Olmert has modified the terms of his 
proposal he is still predisposed to getting back to the 
bargaining table.  Olmert's reformulating of his own offer to 
"withhold" the bill shields him from criticism by domestic 
industry.  Motivation for moving ahead with the legislation 
as currently drafted may be based on the Ministry of Justice 
legal opinion that the legislation fulfills all TRIPS 
commitments and thus avoids potential WTO trade disputes. 
End Comment. 
 
********************************************* ******************** 
Visit Embassy Tel Aviv's Classified Website: 
http://www.state.sgov.gov/p/nea/telaviv 
 
You can also access this site through the State Department's 
Classified SIPRNET website. 
********************************************* ******************** 
KURTZER