US embassy cable - 05ALMATY900

UNCLAS  ALMATY 000900 
 
SIPDIS 
 
 
DEPT FOR EB/IPE SWILSON, BSOILA 
DEPT PLEASE PASS TO USTR JCHOE-GROVES, 
DOC JBOGER, 
USPTO JURBAN, 
LOC STEPP 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ETRD, KIPR, ECON, KZ, ECONOMIC 
SUBJECT: AMBASSADOR'S MEETING WITH PRESIDENTIAL 
ADMINISTRATION DEPUTY MASIMOV ON WTO ACCESSION AND IPR 
PROTECTION 
 
 
1. (U) Summary. On March 3, Ambassador met with 
Presidential Administration (PA) Deputy Karim Masimov. 
Deputy Minister of Industry and Trade Zhanar Aitzhanova, PA 
Chief of the Center for Foreign Policy Nurlan Yermekbayev, 
Astana PO and Astana USAID officer were also present.  In 
preparation for WTO accession, Aitzhanova told Ambassador 
that Kazakhstan is ready to begin making systemic 
commitments.  She asserted that Kazakhstan has made 
tremendous progress on intellectual property rights (IPR) 
protection.  Ambassador encouraged keeping ahead of 
Russia's WTO accession plans and for quick action on legal 
measures that will strengthen IPR enforcement.  (Note: 
Aitzhanova will lead a delegation to Washington March 7-9 
for bilateral discussions with USTR on WTO accession.) 
Other issues reported septel.  End Summary. 
 
2. (SBU) Ambassador emphasized U.S. support for 
Kazakhstan's accession to WTO.  He asked Masimov for an 
assessment of the government's progress in building a 
consensus in favor of accession among the businessmen and 
in Parliament.  Masimov said that Kazakhstan would probably 
be ready in the 2006-2007 timeframe. 
 
3. (SBU) Masimov confessed to some concerns about the 
impact of WTO on local industries after reading an account 
of China's accession.  He also asked that the United States 
take another look at graduating Kazakhstan from the Jackson- 
Vanik required waiver for "Most Favored Nation" (MFN) 
trading status.  The Ambassador pointed out that although 
there is no linkage, WTO accession would likely help 
consideration of this question. 
 
4. (SBU) Aitzhanova expressed appreciation to USTR for its 
support in the Working Party's decision to transform 
Kazakhstan's Factual Summary into a draft Working Party 
report.  She described Kazakhstan as ready to begin making 
specific commitments on systemic issues that will focus on 
Trade-Related Investment Measures (TRIMS.)  Kazakhstan is 
also reviewing all legislation to ensure conformity for 
with WTO rules. 
 
5. (SBU) Any preferences and benefits, Aitzhanova 
continued, will be granted in conformity with WTO 
regulations.  There will be no link between special 
economic zone industries and the country's overall economic 
plan because of the use of exports or export substitution. 
During a January visit by an EU delegation, Kazakhstan 
demonstrated that these special economic zones are either 
infrastructure projects or will not be engaged in 
exporting.  Kazakhstan also described how future subsidies 
will be in conformance with WTO.  However, it is too soon, 
she said, to discuss export performance. 
 
6. (SBU) Returning to timing of accession, Aitzhanova 
acknowledged that Kazakhstan faces challenges since Saudi 
Arabia, Ukraine, and Russia are viewed as priority 
countries.  Ambassador advised that a serious effort where 
the Kazakhstan's WTO team is ready to engage, including 
with technical answers, will go a long way in causing 
Kazakhstan's case to be treated as a priority as well. 
 
7. (SBU) The Ambassador asked who are the expected winners 
and losers in Kazakhstan's WTO accession.  Aitzhanova 
explained that Kazakhstan is running a series of studies on 
the implications of accession.  Sequencing, she said, could 
be a problem ahead.  She also agreed that further 
groundwork with Parliament and the business community was 
needed. 
 
8. (SBU) Turning to intellectual property rights (IPR) 
protection, the Ambassador noted that the annual review of 
Kazakhstan's position on the Special 301 Watch List is 
starting to take place.  He urged Kazakhstan to move 
quickly on enacting Criminal Code amendments now before 
Parliament, including a provision to lower the threshold of 
criminality for IPR violations.  He emphasized the need for 
civil ex parte search procedures and ex officio authority 
for customs agents. 
 
9. (SBU) Aitzhanova responded that Kazakhstan had done 
enormous work in 2004 and expected local legislation to 
conform to TRIPS (WTO agreement on Trade-Related Aspects of 
Intellectual Property Rights) by the first half of 2005. 
She agreed that the Criminal Code was "soft" and maintained 
that changes are being made.  The Customs Code is being 
 
revised, she continued, to include civil ex parte search 
procedures and ex officio authority.  Judges and other law 
enforcement officials, Aitzhanova noted, are receiving 
training that sensitizes them to IPR issues.  The IPR 
environment will not change overnight, she cautioned, but 
the political will is there to make it happen. 
 
Ordway 
 
 
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