US embassy cable - 05NAIROBI4949

UNCLAS NAIROBI 004949 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR EB/TPP/MTA, AF/E, AF/EPS, AND AF/PD 
DEPT PASS USTR 
USAID FOR AFR/EA 
 
E.O. 12958:  N/A 
TAGS: ETRD, ECON, EAGR, KIPR, KE, WTRO 
SUBJECT:  KENYA: EU APPEARS TO HOLD SWAY ON KENYA'S POSITION 
ON GEOGRAPHICAL INDICATIONS 
 
REF: (A) STATE 210829 (B) NAIROBI 4343 (C) NAIROBI 3813 
 
1.  (SBU) Econ/C raised ref A points regarding Kenya's 
position on Geographical Indications (GI) with Ministry of 
Trade Permanent Secretary David Nalo on November 30, and 
pointed out that Kenya's position in favor of the EU's 
proposal on extending GIs (ref B) appeared at odds with 
Kenya's economic interests in that it would negatively 
impact Kenya's dairy industry and require significant 
resources to protect other countries' designated GI 
products.  Nalo agreed that Kenya's stated policy may not 
take into account all the potential consequences of the EU's 
proposal.  He noted, almost with dismay, that the Ministry 
of Trade's technical groups are often influenced by one- 
sided arguments and that the EU position tends to hold 
significant sway over many of these groups on a range of 
issues.  In light of the U.S. arguments, Nalo said he would 
attempt to better understand Kenya's current position in a 
meeting early next week with the Ministry's various 
technical groups. 
 
2.  (SBU) COMMENT:  PS Nalo was frank about problems in 
getting good assessments from the Ministry's technical 
groups and on the need to update the way this work is done. 
However, with the Minister and Assistant Minister relieved 
of duty on November 23 (along with all Ministers following 
the defeat of a GOK-supported constitutional referendum), it 
is unlikely that a significant review of Kenya's stated 
policy will take place before the Hong Kong Ministerial.  As 
reported in ref B, Kenya is a founding member of the Group 
of Friends of Geographical Indications (Friend of GIs), and 
the Ministry of Trade's technical group on this topic, which 
is heavily influenced by the Kenya Industrial Property 
Institute (KIPI), will likely oppose any change in policy or 
to question the possible impact of the EU's proposal on GI 
extension.  Septel will report further on the apparent 
pervasive influence enjoyed by the EU on the Ministry's 
technical groups, and therefore on its trade policies in 
general.  END COMMENT. 
 
Bellamy