US embassy cable - 03ZAGREB306

UNCLAS ZAGREB 000306 
 
SIPDIS 
 
STATE PASS USTR 
 
E.O. 12958: N/A 
TAGS: ETRD, KIPR, SOCI, HR 
SUBJECT: TRIPS MORATORIUM: CROATIA WILL JOIN CONSENSUS, HAS 
LEGAL CONCERNS 
 
REF: A. 02 STATE 265619 
 
     B. 03 STATE 26895 
                       UNCLASSIFIED 
 
PAGE 02        ZAGREB  00306  120722Z 
 
1.  THIS IS AN ACTION REQUEST.  SEE PARA 6. 
 
2.  WE SENT USTR ZOELLICK'S LETTER ON THE U.S. TRIPS 
MORATORIUM TO MINISTER OF ECONOMY JURCIC UNDER COVER OF A 
NOTE FROM THE AMBASSADOR JANUARY 2 (REF A), WITH COPIES TO 
THE MINISTERS OF FOREIGN AFFAIRS AND HEALTH.  WE PASSED REF B 
FOLLOW-UP POINTS JANUARY 31.  ON FEBRUARY 11 THE AMBASSADOR 
DISCUSSED THE ISSUE WITH GORDAN MARKOTIC, CURRENTLY HEAD OF 
THE MFA'S DEPARTMENT FOR ECONOMIC ORGANIZATIONS, AND SOON TO 
BE CROATIA'S REPRESENTATIVE IN GENEVA.  ON THE SAME DAY, WE 
MET WITH ASSISTANT MINISTER OF ECONOMY OLGICA SPEVEC TO 
OBTAIN THE GOC'S OFFICIAL RESPONSE. 
 
3.  MARKOTIC NOTED THAT CROATIA DID NOT OPPOSE THE U.S. 
MORATORIUM, BUT DID LOOK AT IT AS AN INTERIM STEP.  HE 
EXPRESSED HOPE THAT A MULTILATERAL PERMANENT SOLUTION WOULD 
BE FOUND SOON, AND THAT CROATIA WOULD SUPPORT ANY CONSENSUS 
SOLUTION. 
 
4.  AT THE MINISTRY OF ECONOMY, SPEVEC SAID CROATIA HAD 
SUPPORTED THE CHAIRMAN'S TEXT OF DECEMBER 16.  HOWEVER, IT 
WOULD WELCOME ANY MULTILATERAL SOLUTION.  IT WOULD EVEN JOIN 
A MORATORIUM, IF ALL WTO MEMBERS AGREED (IT APPEARED THAT 
SPEVEC THOUGHT THAT GETTING ALL 140 PLUS MEMBERS OF THE WTO 
TO AGREE WOULD BE DIFFICULT.) 
 
5.  THE GOC WAS CONCERNED THERE COULD BE LEGAL PROBLEMS IF IT 
JOINED A MORATORIUM THAT WAS NOT ACCEPTED BY ALL WTO MEMBERS. 
 FOR THE GOVERNMENT TO COMMIT TO SUCH A COURSE, IT MIGHT BE 
NECESSARY TO ASK FOR CHANGES IN ITS PATENTS LAW.  WHILE THE 
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GOVERNMENT COULD COMMIT NOT TO BRING A CASE TO A TRIPS 
COUNCIL, CURRENTLY THERE WAS NOTHING TO PREVENT ONE OF 
CROATIA'S PHARMACEUTICAL COMPANIES FROM SEEKING RELIEF IN 
COURT.  SPEVEC ASKED WHAT MECHANISM EXISTED IN THE U.S. WHICH 
WOULD INDUCE U.S. DRUG COMPANIES TO GIVE UP THEIR RIGHTS TO 
CHALLENGE EXPORTS TO THIRD PARTIES OF PATENTED DRUGS. 
 
6.  ACTION REQUEST: WE WOULD APPRECIATE WHATEVER RESPONSE 
WASHINGTON AGENCIES COULD PROVIDE TO SPEVEC'S QUESTION. 
ROSSIN 
 
                       UNCLASSIFIED 
 
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