US embassy cable - 05ANKARA3347

UNCLAS ANKARA 003347 
 
SIPDIS 
 
DEPT FOR EB/TPP/MTA/IPE, EUR/SE, EB/TPP/ABT 
DEPT PASS USTR FOR LERRION/JCHOE-GROVES 
DEPT PASS LIBRARY OF CONGRESS FOR STEPP 
DEPT PASS USPTO FOR JURBAN AND EWU 
USDOC FOR ITA/MAC/DDEFALCO AND JBOGER 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ETRD, KIPR, TU 
SUBJECT:  RECOMMENDATION TO APPROVE GSP WAIVERS COUPLED 
WITH NEW IPR DEMARCHE 
 
Ref: (A) Sirotic/Urban Email 6/13 (B) State 66948 
 
1. (U) Embassy understands that Washington agencies are 
considering a waiver of competitive needs limits for 
travertine, as well as de minimus waivers and a 
redesignation for other Turkish products, under our 
Generalized System of Preferences (GSP) program.  The 
Pharmaceuticals Research and Manufacturers Association 
(PhRMA) on June 1 filed a petition to limit Turkey's 
GSP eligibility over weaknesses in the intellectual 
property regime, primarily in data exclusivity and 
patent protection. 
 
2. (SBU) Post believes that the ability to limit GSP 
benefits is the most effective lever at our disposal in 
dealing with IPR issues, and that we should use it with 
discretion and strategically to achieve our goals in 
this area.  Therefore, post recommends granting waivers 
at this time, but maintaining the pressure on the GOT 
to improve its IPR regime through a Minister-level 
demarche.  According to GOT, EU and industry sources, 
the GOT appears ready to introduce a significant 
enhancement to the recent regulation on data 
exclusivity, extending protection to molecules which 
are not patented in Turkey.  This would be a very 
important step in the right direction, though it would 
not address all our concerns under the TRIPS Agreement. 
The Turks had promised the EC that they would do this 
in the context of the latter's Trade Barrier Review 
investigation.  Taking steps to limit Turkey's GSP 
eligibility now could backfire, possibly by delaying 
the announcement of improved data exclusivity 
protection.  (Local pharma representatives told us they 
had registered their views with PhRMA, and that the 
latter had withdrawn the GSP petition - ref A). 
 
3. (SBU) We should ensure that the Turks do not 
interpret favorable decisions on their GSP requests as 
a sign that they are off the hook on IPR issues. 
Embassy recommends that Washington agencies develop an 
instruction to demarche the State Minister for Foreign 
Trade on this, noting that the GOT has narrowly avoided 
additional limits on its GSP eligibility, but that we 
will be paying close attention to outstanding data 
exclusivity, patent, copyright and trademark issues 
highlighted in the Special 301 report as we consider 
Turkey's future eligibility. 
EDELMAN